Wine consumption in Nigeria dropped to the lowest in five years on the back of rising inflation and depreciation of the naira, BusinessDay analysis of a new report from a London-based market research company shows. Over the past few years, many Nigerians have opted for wine due to its affordability as against champagne which has become more expensive since 2016. The report by Euromonitor International shows that the total volume sales of wine in the formal market fell by nine percent to 31.
5 million litres in 2023 from 34.7 million litres in the previous year. But it is expected to pick up to 32.
4 million in 2024. Read also: FG imposes 30% tariffs on wine, spirit, cigarette “As in most alcoholic drinks categories, wine was heavily impacted by poor economic conditions in 2023. Lower consumer spending arising from the impact of high fuel prices and the depreciation of the local currency led to declining volume sales,” the report said.
It noted that with the vast majority of wine brands being imported, the depreciation of the local currency had a key impact on wine prices, leading to a strong increase in average unit prices. “Red wine is the largest product in alcoholic wine, with sales impacted by rising prices and inflationary conditions. It is generally cheaper than white wine varieties, with many consumers introduced to wine through the cheap Don Simon and Baron Romero red wine brands.
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