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The Wine Market in Nigeria
Although Nigeria’s drinking pattern traditionally favors spirits and beer, wine is increasingly gaining popularity. Seven percent (7%) of respondents in the survey consumed wine more than any other drink type in the week preceding the study. For most wine lovers, wine is an upscale, healthy, and sophisticated alcohol alternative. The annual market size is about 28,000 metric tons of wine with most of this supply imported from France, the United States of America, Spain, South Africa, and Italy. Domestic production of wine, especially grape wine is minimal and at an early stage. Notwithstanding, there has been rising interest in domestic wine production in regions like Jos and Benue where the climate conditions are somewhat favorable for grape production.
Also, there are local variants of wine made from other fruits such as mango, pineapple, palm sap, and plantain. These are very popular among low-income communities. In middle to high-income communities, they are mostly served during ceremonies as part of the local bar.
Traditionally, the average wine lover in Nigeria lives in a major city like Lagos, Abuja, or Port Harcourt, is in the high-income band, and has good exposure to wine trends. This consumer categorization is however shifting as many Nigerians have become more exposed to global wine trends. Importers have responded by introducing a wide variety of wines to the market, offering different prices and alcohol levels. From the study, 71% of wine lovers had at least a university degree, 84% were in the middle to high-income band, and 75% were aged between 20 and 40.
How much is a bottle of Wine in Nigeria, and how much do Nigerians spend on Wine?
How much a bottle of wine costs in Nigeria is no easy question to answer because while the price of the same bottle size can be as low as ₦4,000, it can also be as high as one year’s rent for a modest one-bedroom in Lekki. This is not entirely surprising as wine is known to be a luxury beverage and out of the reach of many consumers. However, in the Nigerian market, several importers, distributors, and manufacturers are proving that wine can be as accessible as beer or soft drinks to the average consumer. New variants of cheaper price and low-alcohol content have been introduced. These brands have captured consumer attention and patronage as they address the affordability problem. Most consumers can now serve wine to their guests or relax at home with a glass of wine without breaking the bank. Some of the popular brands of wine in the wine market are Eva, and Veleta, both low-priced at about ₦4,000 with very low or zero alcohol content.
Moreover, the average spend on wine is higher than on the other categories of alcohol. On average, Nigerians spent ₦ 11,207 per week during the first quarter of 2024, compared to ₦ 7,614 for spirits and ₦ 4,123 for beer. Consumers with university degrees spent three times more than the average consumer. Also, females in the survey spent approximately 25% more than males on wine, while adults with children spent twice as much as those without children.
Figure 5a: Spending Patterns in Nigeria’s Wine Market
Source: Firmus Research
What Wine Brands Do Nigerians Drink the Most and Why?
Nigerians highly prefer low-alcohol wine. Some top brands, like Eva, Pure Heaven, and Veleta, are consumer favorites. Nevertheless, based on the survey, the Four Cousins brand emerged as the market leader. As with other alcoholic beverages, taste drives brand selection. In the wine market, 60% of the time, consumers choose a particular brand because of taste. This is followed by ingredient type (fruits) which is considered as healthy, flavor options (8%), and brand popularity (6%).
Do Nigerians Always Stick to the Same Brand of Wine?
Yes, largely, as 60% of the wine lovers interviewed will often buy the same brand of wine. This is because they can rely on the taste, making the brand a personal favorite. Several of them also appreciate the natural fruitiness of wine and the different flavor profiles. However, 22% of consumers always change their wine options to sample other wine brands
Where Do Consumers Mostly Buy Wine in Nigeria?
If you are new to Nigeria and looking to buy wine, the shopping mall, supermarkets, or wine shops are places to go. Predominantly off-trade purchases dominate the wine market with more than half of purchases happening in supermarkets and malls. The chart below highlights the dominant areas of wine trade in Nigeria.
Figure 5b: Favourite Wine Purchase Points in Nigeria
Source: Firmus Research
What to Expect in the Nigerian Wine Market
Despite the growing consumer base for wine in Nigeria, wine consumption is expected to decline in the short to medium term due to vulnerabilities to economic fluctuation. Factors such as currency depreciation, inflation, and tighter monetary conditions will account for this. This is because wine is a luxury drink for most consumers. This however presents an opportunity for domestic wine producers if they can beat down costs. Moreover, demand for high-quality brands may be unaffected by the economic downturns due to the minimal impact on higher-income consumers. Any investor interested in the wine market in Nigeria should time their market entry well, have a clear target audience, tailor their products to consumer preferences, and ensure a good distribution system to reach the right target audience.
You may like to know that Nigerians spend up to 31% of their disposable income on Alcohol.