Despite economic uncertainty, and low consumer spending, winemakers are seriously looking into Nigeria wine market with an estimated value of N460 billion, and increasing at 6 percent average year –to-year since 2007.
This continue growing appetite in the last two years have seen an increase of several brands from South Africa, Asia and Europe berthed in Nigeria which are being embraced by consumers.
Among such brands includes, Wild Africa Cream a South African brand, Aviva wine from Spain, Ciroc by Diageo a French company among others and are keen to tap into the market.
Europe and USA market are currently experiencing a shift in consumers buying habit as more and more millennial are cutting down on how much they spend buying wine, according to Washingtonpost.
At the launch of Wild Africa Cream, in September last year Barry Badenhorst brand manager KWV Wines describe Nigeria as a market too big to ignore.
A recent global forecast by Zion Market Research on the wine market titled Wine Market by Colour (Red Wine, Rose Wine, White Wine, and Others), By Product Type and By Distpribution Channel: Global Industry Perspective, Comprehensive Analysis, and Forecast, 2017 – 2023” shows that the global wine market is valued at approximately $ 302.02 billion in 2017 and is expected to generate revenue of around $ 423.59 billion by the end of 2023, growing at a CAGR of around 5.8 percent between 2017 and 2023.
Despite Middle East and Africa and Latin America in the report are expected to witness the least growth in comparison to other regions, Nigeria consumers increase demand for premium wines and growing westernization is seen as a factor that could drive its growth.
Winemakers have realised this and are targeting the Nigeria market that has continue to develop an increasingly preferences for premium imported brands, despite the quality products by local manufacturers.
Although Nigeria market remains a highly price-sensitive demanding more of low priced products, a significant number of hotels and restaurant visited in Lekki, Victoria Island, Ikoyi and Ikeya are stocked with foreign brand wines.
According to Euromonitor, importer distributors account for around 70 percent of distribution, with the balance imported directly by retailers and the hospitality sector.
However information on the level of consumption has remain a problem, as the bulk of wine consumed are sold through the traditional markets, grocery stores, and supermarkets-and other informal outlets—where sales are not usually recorded.
David Ibemere
