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What alcoholic brands in Nigeria should do to win back consumers

Updated: Sep 14

Currently, Millennials and Gen Z contribute to more than 60% of the Nigerian population. This makes them the largest demographic for alcohol consumption.

Currently, the alcohol market in the country is dominated by Millennials. While Millennials are the younger greater population, Gen Z is indeed the next big faction of ‘alcohol consumers’. For this reason, it is important for alcohol brands to leverage this consumer segment

With the country adopting the new normal, brands are expecting greater returns compared to the last year. In order to do this, they need to re-engage their channels paying key attention to Gen Zers, a new but quickly growing target demographic for alcoholic beverages.

Demand for all alcoholic beverages in Nigeria is quite low

In the last two years, consumers habits have changed in response to the pandemic. For alcohol brands, the question is 'how have these changes impacted their category'? Kasi retail category demand index, a measure of consumer demand for retail category provides insights on how consumer habits impacted demand for alcohol beverages. The index ranges from + 0.25 to -0.25. An index level close to 0.25 means demand is high as more consumers are looking to purchase while an index level close to -0.25 means demand is low. This measure is an effective tool for demand planning.

In April 2020, the demand for alcohol beverages was 0.006 and it was driven by beer at 0.087. In July 2020, various alcohol categories picked up though demand for wine decreased further. Towards the holiday season of 2020; Wine, Whisky and Tequila demand increased while that of Beer, Vodka and Brandy decreased. In April 2021, though overall demand for alcoholic categories decreased, demand for Beer was the highest, followed by Whisky and Tequila.

In July 2021, overall demand of alcoholic beverages decreased but that of Whisky was the strongest. Towards the holiday season of 2021, overall demand for alcoholic beverages decreased further but Beer demand was the highest. Evidently, the demand for alcohol beverages has been decreasing over the period. Are brands ready to change this trend?

Millennials and Gen Xers drive beer demand while Millennials drive whisky demand

While the demand for Beer is more than that of Whisky, generally the alcohol beverage demand has been decreasing over time. Millennials take the lead in beer demand at 0.086, closely followed by Gen Xers at 0.078, Baby Boomers at 0.050 while Gen Z lag behind at 0.036.

When it comes to Whisky, Millennials take the lead again at 0.057, followed by Gen X at 0.049, Gen Zers at 0.042 while Baby Boomers lag behind at 0.005.

To tap into the younger generations, alcohol brands need to look into ways for example category drivers like price, quality and convenience of their products that would ensure they get to these markets. There is an opportunity for brands to capture market share from beer if they implement the right strategy.

To create demand, alcohol brands should rethink their channels to capture Millennials and Gen Z

Currently, Millennials and Gen Z contribute to more than 60% of the Nigerian population. This makes them the largest demographic for alcohol consumption. Hence, it is wise for alcohol brands to leverage this market in order to win big.

When it comes to distribution of products, 64% of Millennials believe in shopping at the modern supermarket, 17% at the neighborhood store, 12% at the outdoor market and 6% at online retail stores. The situation is almost similar for Gen Zers who 71% believe in shopping at the modern supermarket, 14% at the neighborhood store, 11% at the outdoor market and 3% in the online retail store.

The pandemic shifted brand communication channels for Gen Zers and Millennials. Traditional media was ranked first (Tv ads for Gen Zers and Radio ads for Millennials). Social media posts come second for both generations. With the easing of the pandemic restrictions, will the return to traditional media trend continue? Alcohol brands looking into tapping the Gen Z and Millennial market, should look into their distribution and advertising channels.

Our data intelligence platform can help you track these trends in consumer behaviors in Africa over time. This provides you with valuable insights that can help you or your business make fast data-driven decisions.

Contact our team today to explore how our consumer intelligence can empower your decision-making process. Win with confidence with Kasi insights

#Alcohol #Spirits #Whisky #Beer #Pandemic #Nigeria #Africa #Millennials #GenX #GenZ #Kasiinsight


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