The Energy Drink Market in Nigeria

The Energy Drink Market in Nigeria

Energy drink is a fast-growing soft drinks segment in Africa, reflecting the growing demand for functional beverages. Nigeria is a rapidly growing energy drinks market in Africa projected to grow at 14.14% CAGR above the continent’s average of 10%. The traditional energy drink type is the most common in Nigeria but benefits from the wellness wave associated with other functional drinks such as herbal teas, sports, and fortified drinks. Though traditional energy drinks contain several grams of sugar and other unhealthy ingredients, many Nigerians associate them with healthiness. In the study, 20% of consumers were influenced by their perception of healthiness when selecting different energy drink brands. Possibly, the beneficial effects on performance outweigh the downsides for many consumers.

Young people are the main target market for energy drinks in Nigeria. In the survey, participants who often consumed energy drinks were below 50 years old. Further, 71% of energy drink consumers were 30 years or below. Several reasons account for this: 19.2% drink it for performance during sports, 43.5% drink it for alertness while studying for exams, and 16.4% take it at parties. 35% of consumers take it for no special reason, just a soft drink option.

How much is Energy Drink in Nigeria, and how much do Nigerians spend on Energy Drinks?

A bottle or can of Energy Drink in Nigeria costs between ₦415 and ₦1800 depending on the brand and packing size. The top brand, Fearless, is also priced at the low end at ₦415. Price is a key competitive strategy the Fearless brand uses to maintain its top position. The brand is one of the earliest brands in the market and has maintained its top position amid an influx of many brands. It is top of the mind for most consumers and it’s affordable. Pricing in the energy drink market is a competitive tool just as in the soft drink market. Several players adopt the “more for less” model. Many low-priced brands offer high volumes of 50 cl to 60 cl for about ₦ 500 or less.

Figure 7a: Prices of Energy Drinks in Nigeria

Source: Firmus Research

The average spend on energy drinks in Nigeria is ₦ 3,009. This buys about six (6) of the low-priced and two (2) expensive options. Generally, parents spend more on energy drinks than non-parents, possibly because parents require extra energy to handle the complexities of parenthood. Also, females spend slightly more than males.

Figure 7b: Spend Patterns of Energy Drink Consumers in Nigeria

Source: Firmus Research

What Energy Drink Brands Do Nigerians Drink the Most and Why?

The fearless energy drink introduced to the Nigerian market leads the pack of energy drinks in the market due to factors such as low price, brand popularity, and what consumers consider as ‘great taste’. The Fearless energy drink is one of the oldest energy drinks in the Nigerian market and has for a long time dominated the market. Though it has faced serious competition from the likes of Predator and other new entrants, it has maintained its market dominance. In the survey, Fearless emerged as the top energy drink by consumption with 44% of consumers purchasing it the week preceding the survey. This was followed by Predator with 29%, Power Horse with 5.8% and Bullet with 5.2%. The figure below highlights the top 10 energy drink brands in Nigeria. The top 10 Energy drink brands account for 97.3% of consumer preference.

Figure 7c: Ti 10 Energy Drinks in Nigeria

Source: Firmus Research

Do Nigerians Always Stick to the Same Brand of Energy Drinks?

According to the study, half of energy drink consumers are loyal to their brands. 26% are open to trying new brands and the rest are not loyal to any brand. To achieve consumer loyalty, a product’s ability to boost energy must be high (35%) and taste good (25%). For about 4% of consumers, it must satisfy other health requirements such as boosting immunity.

Where Do Consumers Mostly Buy Energy Drinks in Nigeria?

Most energy drink consumers buy from supermarkets (34%) and open markets (24%). About 17% buy from street hawkers, signaling the on-the-go characteristics of energy drinks. A few buy from restaurants and online sources. The chart below highlights dominant purchase points for energy drinks in Nigeria.

Figure 7d: Favorite Energy Drink Purchase Points in Nigeria

Source: Firmus Research

What to Expect in the Nigerian Energy Drinks Market

Many consumers in the Nigerian market expect energy drinks to provide them with additional health benefits, beyond the energy boost. However, product offerings in the market are lacking in these added benefits. This gap needs filling. New and existing players will emerge to fill this gap giving consumers what they want or perceive to be getting when they purchase energy drinks: a health boost. As the energy drinks market grows, more brands are expected to be added including natural and organic energy drink options. Moreover, beyond the traditional energy drinks and innovations in flavor, consumers will be willing to pay for energy drinks with more functionalities such as improved immunity, protein, and essential vitamin boost.

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