Nigeria stands as one of the most vibrant markets in Africa, attracting new entrants year after year, all vying for market opportunities.
Among the various industries contributing significantly to the country’s economic development, the wine industry has become a rapidly growing sector.
As consumer preferences evolve and disposable incomes rise, the wine market in Nigeria presents potent opportunities for businesses and investors alike.
In this post, we will explore the current state of the wine market in Nigeria, assess its feasibility, and highlight the opportunities available.
Market Overview
Nigeria primarily imports wine for consumption, and over the past years, there has been a notable increase in wine consumption, particularly within the emerging middle class. This trend is driven by urbanization, changes in lifestyle, and a desire for choicest beverage options.
Although wine is not traditionally a part of Nigerian culture—local alcoholic beverages such as palm wine, ogogoro, burukutu, and pito are more commonly consumed. These drinks are especially popular during ceremonies, parties or hangouts and are often sold in local bars.
The wine market in Nigeria is estimated to be around USD 522.7 million in market size in 2024, combining revenue from both at-home consumption (supermarkets, convenience stores) US$504.0 million and out-of-home consumption (restaurants, bars) US$18.7 million according to Statista.
These growing figures show a shift in preference and an increase in popularity of wine in Nigeria. With a population of over 200 million, Nigeria presents a great opportunity for both domestic and international wine producers.
Key Players
Several well-established players dominating the Nigerian wine market include South Africa’s Distell Group, France’s Castel Group, Diageo, Heineken, AB InBev, E. & J. Gallo Winery, Van Loveren Wines, and Capel Vinos among others.
There has been a growing trend of a variety of imported wines in Nigeria due to limited local production. However, recently there’s been an interest in local wine production, with a few Nigerian entrepreneurs starting to explore viticulture suited to the local climate.
In recent years, some consolidations have occurred in the market. For instance, in 2022, Heineken increased its stake in Champion Breweries, potentially strengthening its position in the broader alcoholic beverage market, including wine.
As Nigeria’s middle class grows, more people are starting to enjoy quality wines, and this trend is likely to keep growing. As a result, there is now a wider range of wines available, from basic to premium choices.
Opportunities
The Nigerian wine market shows great potential for entrepreneurs. With over 40 million regular wine consumers and a growing middle class, this presents a strong customer base. These consumers are increasingly interested in quality taste, creating opportunities for new and unique wine products and offerings.
Consumer preferences are also shifting, with Nigerian wine consumers becoming more adventurous and seeking out new grape varietals and regions beyond traditional favourites. This trend opens doors for entrepreneurs to introduce new products and satisfy evolving consumer tastes.
In terms of distribution, while supermarkets and restaurants remain established channels, there’s significant potential for exploring alternative sales channels. Online platforms, specialty stores, and direct-to-consumer sales through events and wine clubs can provide new avenues for reaching customers.
Additionally, there is potential for domestic wine production. Although Nigeria currently imports most of its wine, local vineyards could cater to a niche market, especially as consumer interest in locally-made products grows. This could be a cogent area for entrepreneurs to explore, tapping into the trend of supporting local industries.
Our Success Story
Wine Consumption Survey
Brief: Webhaptic Intelligence conducted a survey to understand consumer preferences and perceptions of a specific type of wine in Nigeria. The study focused on key attributes like aroma, taste, body, finish, appearance, and overall satisfaction, comparing this wine to other popular brands.
Approach: The survey was carried out in Lagos and Port Harcourt with 100 respondents, including sellers, buyers, and regular wine drinkers. Both qualitative and quantitative methods were used, including face-to-face interviews and blind taste tests, to gather comprehensive data.
Outcome: The survey provided valuable insights into Nigerian consumers’ preferences and perceptions of the wine. The findings and recommendations will help guide marketing strategies and increase the wine’s market share in Nigeria. The final report included clear and visually engaging presentations of the data and insights.
Get Expert Insights into the Wine Industry in Nigeria
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