Nigeria’s alcoholic drinks ecommerce market to hit US$28.2 million in 2023
By Joseph Ekeng
Nigeria’s alcoholic drinks ecommerce market is on track to reach US$28.2 million by 2023, according to a recent market report by ecommerceDB. The report reinforces the rapid growth in the alcoholic drinks e-commerce segment, which is ranked among the top five in Africa.
The sector began to pick up pace after the Covid 19 pandemic, as many Nigerian turned to online stores to order alcohol for domestic consumption. The Covid-19 pandemic disruptions and lockdown measures also affected on-trade market channels e.g. bars, restaurants, clubs, hotels, etc., in 2020.
Experts stress that consumers are turning to online shopping for convenience and accessibility, and the availability of mobile payment options is making it easier to purchase alcoholic beverages online.
More so, the Nigerian government’s push towards a cashless economy has also contributed to the growth of the market. As Nigeria’s middle class continues to grow, the market is expected to expand further.
The Alcoholic Drinks eCommerce market is a sub-market of the Beverages market. Further categories within the Beverages market are: Hot Drinks, Non-Alcoholic Drinks, and Other Beverages.
In another report by Euromonitor International which focuses on development in the sector, brands are already tapping into the opportunities to meet the needs of customers.
According to the report titled ‘Best Markets for Sustained E-Commerce Growth’, “Manufacturers are investing in new and more sophisticated ways of delivering their goods to the market following their COVID-19 experience,” the report states. The report also stated that the high rising number of consumers working from home has translated to a reluctance to return fully to on-trade establishments or crowded retail spaces. “As a result, more consumers are attracted by convenient and safer online shopping.”
Also, a recent Mastercard study on consumer spending revealed that over 81 percent of consumers in Nigeria were shopping more online since the onset of the pandemic as Data, apparel, beauty products and Fast-Moving Consumer Goods saw the highest surge of online activity.
Abiola Gbemisola, consumer analyst at FBNQuest who agrees with the report, says companies have increased their digital outlets for them to sell more.
With an average beer consumption of 12.28 litres per year, Nigeria leads the top 10 biggest beer-drinking countries in Africa making the sector increasingly lucrative.
According to AsokoInsight market data, beer is the most widely consumed alcoholic beverage with a 55 percent market share, followed by spirits (30%) and wine (15%).
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