November 18, 2023
Kasi Insight, in August 2023, conducted an extensive Share of Wallet survey across 20 diverse African markets. The survey provided invaluable insights into various aspects of consumer spending, including sources of income, expenditure patterns, and the specific consumer-facing products purchased on a monthly basis.
In the Nigerian alcoholic beverage landscape, beer stands as the clear favorite, winning the preference of 68% of the surveyed respondents. Bitters also enjoy a substantial following at 33%, with Brandy at 21% and Gin at 18% trailing behind. Despite being the least consumed, wine captures the attention of 13% of respondents surveyed.
When it comes to age groups, Millennials take the lead in alcohol consumption, with 77% favoring beer. Gen X closely follows at 66%, while Gen Z isn't far behind at 57%. Gen Z emerges as the top consumers of bitters at 45%, surpassing both Millennials and Gen X. Brandy preference leans towards Millennials at 25% and Gen X at 22%. Gin sees significant consumption among both Millennials (23%) and Gen X (17%), with Millennials showing a stronger preference. Gen Z takes the lead in wine consumption, accounting for 26% of wine enthusiasts.
When analyzing spending habits across different alcohol categories, distinct trends surface among various age groups. In the case of beer, the majority of respondents surveyed prefer a budget of less than N7,600 (68%). Leading the way are Millennials at 79%, followed by Gen Z at 67%, and Gen X at 60%. Spending in the N8,300-15,000 range is equally divided, with both Gen X and Gen Z at 24% and 26%, respectively. Gen X directs the largest portion of their spending (8%) toward the N16,000-22,800 category.
For bitters, a similar albeit slightly weaker trend prevails, with 38% of respondents surveyed choosing to spend under N7,600. Within this budget category, Gen Z accounts for 51%, Millennials for 48%, and Gen X for 30%. The N8,300-15,000 range witnesses slightly more spending from Gen X and Millennials, at 28% and 26%, respectively. Gen X exhibits a preference for higher-end bitters, allocating 21% to the N16,000-22,800 category. Concerning brandy, the overall spending patterns show that 31% allocate budgets under N7,600, 25% fall within the N8,300-15,000 range, 24% opt for the N16,000-22,800 bracket, and 20% are willing to spend more than N23,600.
Given that beer is the most preferred alcoholic beverage with 68% of respondents favoring it, beer brands should continue to invest in expanding their product offerings. They can experiment with different beer types, flavors, and packaging to cater to a broader audience. Additionally, marketing campaigns should emphasize the cultural and social aspects of beer consumption, which resonate well with the Nigerian population. Bitters have a strong following at 33%. To capitalize on this, bitters brands should consider diversifying their product range to cater to different flavor preferences and offer value for money. Engaging marketing campaigns highlighting the herbal and medicinal qualities of bitters may attract health-conscious consumers.
For beer, emphasizing affordability is crucial, but also introduce value packs and promotions to attract budget-conscious consumers. For bitters, especially among Gen X, brands can highlight the premium attributes of their products and offer limited-edition variants to justify higher price points. Brands should consider creating distinct marketing campaigns for each generation, focusing on social media platforms and influencers popular among these age groups. Tailored messages that resonate with the specific preferences and values of each generation can be a game-changer.
Share on socials using this caption: Nigeria's Alcohol Landscape: Beer Reigns Supreme! 🍻🇳🇬 With 68% of preferences, it's clear that beer is the nation's favorite. Millennials lead the way with 79% opting for affordability. #NigerianBeerKing #MillennialsKnowBest
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