Nigeria’s spirit market soars in 2024
By Seun Johnson
The spirits market in Nigeria has witnessed a significant rise with 2024 proving to be a remarkable year for both at-home and out-of-home consumption.
While consumers continue to embrace premium spirits and traditional beverages alike, the market is said to have been positioned for growth, driven by changing consumer preferences and a positive economic outlook.
According to the latest report by Statista, revenue generated from spirits sold in supermarkets, convenience stores, and other retail outlets is expected to reach $369.5 million by end of 2024.
This figure confirms the growing trend of at-home consumption, where Nigerians are increasingly choosing to enjoy their favorite liquors in the comfort of their homes.
Also, with an expected annual growth rate of 11.72% from 2024 to 2029, the at-home segment of the spirits market is set to continue its rapid expansion.
While Statista Report posits that at-home consumption dominates the Nigeria’s spirits market, out-of-home revenue which is generated in restaurants, bars, and nightlife venues, is expected to reach $3.23 million by end of the year.
Notwithstanding the lower figure, this development is believed to have highlighted the importance of hospitality sector in the growth of the spirits market. The out-of-home market plays an important role in shaping consumer preferences and brand loyalty.
From time immemorial, Nigerian bars and restaurants are always the first places where new products are introduced, and where brands engage with their customers through promotions and events. This segment remains a paramount component of the overall spirits market that offers opportunities for brands to capture and retain customers in social settings.
In terms of consumption, out-of-home is expected to record 151.6 thousand litres while at-home consumption according to the report, is projected to reach 23.8 million litres by the end of 2024. This figure reflects the scale and potential of the spirits market.
Similarly, the report shows that by 2025, the market will see a volume growth of 2.0% in the at-home segment which indicates a steady demand and the resilience of consumer spending on alcoholic beverages.
Regardless of this positive outlook, the market is said to be facing several challenges arising from volatility of the naira, inconsistent import duties, and the high cost of premium spirits that are affecting consumer’s purchasing power.
However, these challenges also present opportunities as local brands are increasingly focusing on innovation, introducing new flavors and packaging to appeal to a broader audience.
Also, the growth in e-commerce and digital marketing has enabled brands to reach consumers directly, bypassing traditional retail channels and reducing costs.
With the Nigeria’s economic recovery underway, the spirits market is expected to maintain a steady growth in the second half of 2024 through strong revenue projections, increasing volumes, and a demand for both traditional and premium products.
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