Cinema - Nigeria | Statista Market Forecast

Cinema - Nigeria

Nigeria

Highlights

In Nigeria, revenue in the Cinema market is projected to reach US$123.50m in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 5.88%, leading to a projected market volume of US$164.40m by 2029.
In the Nigerian Cinema market, the number of viewers is anticipated to reach 9.3m users by 2029.
User penetration in Nigeria will be 3.5% in 2024 and is expected to increase to 3.6% by 2029.
The average revenue per viewer in Nigeria is expected to amount to US$15.59.
In a global context, the majority of revenue will be generated the United States, with a projection of US$20.98bn in 2024.
Nigeria's cinema market is experiencing a vibrant resurgence, fueled by a growing appetite for locally produced films and innovative storytelling techniques.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Cinema market in Nigeria has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Nigerian customers have shown a growing interest in cinema experiences, seeking entertainment options beyond traditional forms of media. This shift can be attributed to several factors, including the increasing disposable income of the middle class, urbanization, and the desire for social experiences. Going to the cinema has become a popular activity among young adults and families, providing a way to escape from daily routines and enjoy the latest movies on the big screen. Additionally, the rise of social media platforms has contributed to the popularity of cinema, as individuals share their experiences and recommendations with their networks.

Trends in the market: One of the key trends in the Nigerian cinema market is the rise of multiplexes. Multiplexes offer multiple screens and a variety of movie options, catering to different tastes and preferences. This trend has been fueled by the increasing number of cinema chains entering the Nigerian market, both domestic and international. These chains are investing in state-of-the-art facilities and technologies to enhance the cinema experience, including comfortable seating, advanced sound systems, and 3D capabilities. This trend has not only expanded the reach of cinema across the country but has also attracted a larger audience, including those who may not have previously considered going to the cinema.

Local special circumstances: Nigeria has a vibrant film industry, often referred to as Nollywood, which produces a significant number of movies each year. This local film industry has played a crucial role in driving the growth of the cinema market. Nigerian audiences have shown a strong preference for local content, and the availability of Nigerian movies in cinemas has contributed to the increasing popularity of cinema-going. Furthermore, the success of Nollywood films has attracted international attention, leading to collaborations between Nigerian filmmakers and international production companies. This has not only expanded the range of movies available in Nigerian cinemas but has also helped to elevate the profile of Nigerian cinema on the global stage.

Underlying macroeconomic factors: The growth of the Nigerian cinema market can also be attributed to underlying macroeconomic factors. Nigeria has experienced steady economic growth in recent years, with a growing middle class and increasing disposable income. This has created a larger consumer base with the financial means to afford cinema tickets and other entertainment expenses. Additionally, urbanization has led to the development of shopping malls and entertainment complexes, providing suitable locations for cinema operators to establish their theaters. The government has also played a role in supporting the growth of the cinema market, implementing policies to attract foreign investment and promote the development of the entertainment industry. In conclusion, the Nigerian cinema market has experienced significant growth due to changing customer preferences, the rise of multiplexes, the popularity of local content, and favorable macroeconomic factors. As the market continues to evolve, it presents opportunities for both domestic and international cinema operators to tap into the growing demand for cinema experiences in Nigeria.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Cinema market, which comprises revenues from box office, advertsing and concessions. The market includes both consumer and advertising spending. All monetary figures refer to consumer spending on tickets and concessions. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.