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Gain Report - Nigeria - Strong growth persists in Nigeria’s wine market |
Report Highlights: Average wine consumption per capita jumped from 0.1 liters to more than 0.4 liters within 2004 and 2010. Still wine (red and white) category led the market accounting for a share of more than 80 percent. Local wine processing is underdeveloped and high-cost. Nigeria's large and increasing population (over 150million), increasing health consciousness and upward social trends are assisting growth in wine exports to Nigeria.
Section I: Market Overview
In Nigeria, alcoholic beverages are considered a type of food and alcohol consumption is mostly a social activity. With population, over 150 million, Nigeria provides a large market for alcoholic beverages estimated at $4.0 billion.
Nigeria’s beer market was worth $2.7 billion (about 70% of total alcohol market) in 2009 representing over 15 million hectoliters of beer (lager and stout types) brewed locally by multi-national processors (Heineken, Guinness, South Africa Breweries, and a few small others). They are brewed mostly with imported barley, malt and hops.
The GON placed an import ban on beer to protect local industry in 2003 and only alcoholic wine and spirits can be exported to Nigeria. Domestic alcoholic wine production is grossly underdeveloped and the amount entering formal marketing channels is insignificant. Alcoholic wine valued about $200 million (approx. 5% of total alcoholic beverages), are mostly imported.
Some pineapple-based wine products and distilled gins are also formally produced and sold in the market but their share of the wine and spirits market is insignificant. Wine and spirits from traditional alcoholic products are also widely produced and consumed but they do not pass through formal channel.
Nigeria’s large wine market continues to show strong growth as a result of the increasing middle class as well as the gradual shift from beer to wine consumption as wine is generally perceived to be a healthier alcoholic beverage. This is creating export opportunities for U.S. wine exporters….
Prepared By: Marcela Rondon, Regional AgAttache and Uche Nzeka, Agricultural Marketing Specialist
Approved By: Russ Nicely, Regional Agricultural Counselor
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