Ready-to-Drink (RTD) Coffee - Nigeria

Nigeria

Highlights

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Ready-to-Drink (RTD) Coffee market amounts to US$9.20m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$96.31k in 2024.
Revenue, combined amounts to US$9.29m in 2024.
The revenue, at home is expected to grow annually by 15.82% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated Japan (US$12bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$0.04 are generated in 2024.
In the Ready-to-Drink (RTD) Coffee market, volume, at home is expected to amount to 881.20k L by 2024.
Volume, out-of-home is expected to amount to 5.73k L in 2024.
Volume, combined is expected to amount to 887.00k L in 2024.
The Ready-to-Drink (RTD) Coffee market is expected to show a volume growth, at home of 6.0% in 2025.0.
The average volume per person, at home in the Ready-to-Drink (RTD) Coffee market is expected to amount to 0.00L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Ready-to-Drink (RTD) Coffee market in Nigeria has been experiencing significant growth in recent years. Customer preferences for convenience and on-the-go consumption have been driving the demand for RTD coffee products in the country.

Customer preferences: Nigerian consumers are increasingly seeking convenient and portable beverage options to fit their busy lifestyles. RTD coffee offers a quick and easy solution for those who want to enjoy a cup of coffee without the hassle of brewing it themselves. The ready availability of RTD coffee products in supermarkets, convenience stores, and online platforms has made it a popular choice among consumers in Nigeria.

Trends in the market: The RTD coffee market in Nigeria has witnessed a surge in product innovation and variety. Manufacturers are introducing new flavors and formulations to cater to the diverse tastes of consumers. Additionally, there has been a growing trend of incorporating local flavors and ingredients into RTD coffee products, such as adding traditional Nigerian spices or flavors. This localization strategy has helped to attract a wider consumer base and differentiate brands in the market.

Local special circumstances: Nigeria has a large and young population, with a significant portion of the population being part of the working class. This demographic profile has contributed to the growth of the RTD coffee market in the country. The busy lifestyles of urban consumers, combined with the increasing coffee culture and Western influences, have created a favorable environment for the adoption of RTD coffee products. Furthermore, the rise of coffee shop chains and cafes in major cities has also contributed to the growing popularity of RTD coffee among Nigerians.

Underlying macroeconomic factors: The economic growth and rising disposable incomes in Nigeria have played a crucial role in the development of the RTD coffee market. As more Nigerians have the means to afford premium and convenience products, the demand for RTD coffee has increased. Additionally, the growing urbanization and modernization of retail channels have made RTD coffee products more accessible to consumers across the country. The expansion of organized retail, such as supermarkets and convenience stores, has provided a platform for manufacturers to distribute their products effectively. In conclusion, the Ready-to-Drink (RTD) Coffee market in Nigeria is experiencing strong growth driven by customer preferences for convenience and on-the-go consumption. The market is characterized by product innovation, localization strategies, and the influence of a young and busy population. The macroeconomic factors of economic growth, rising disposable incomes, and the expansion of organized retail have also contributed to the development of the RTD coffee market in Nigeria.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

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.