Premium wine, spirits demand rises in Nigeria despite economic pressures’*

*’Premium wine, spirits demand rises in Nigeria despite economic pressures’*

ABUJA — Even as inflation bites and foreign exchange pressures persist, demand for premium wines and spirits is rising in Nigeria, highlighting a shift in spending patterns as a segment of consumers continues to spend on higher-end products.

While many Nigerians cut back, a smaller, affluent segment continues to spend on premium drinks, keeping the segment active despite broader economic strain.

These trends were outlined in a statement on the forthcoming Abuja Wine & Spirit Festival, signed by Project Lead, Kaycee Oguejiofor, alongside industry insights from Solomon Igbokwe.

Nigeria’s alcoholic drinks market recorded modest growth in 2024, with beer still dominating by volume, while wines and spirits continue to gain ground, particularly in the premium category. Wine imports were estimated at about $52.9 million, suggesting demand has held up despite currency pressures.

The shift is being driven in part by younger professionals in cities, who increasingly view premium drinks as a more reliable option and, in some cases, a marker of lifestyle.

Igbokwe said: “It depends on how you look at it. The consumption of premium wines and spirits has changed at a rate that is unbelievable, because the truly upwardly mobile market now views drinking premium as a lifestyle, and they try to avoid the risks associated with drinking just anything.”

The impact is also being felt across the hospitality chain, including hotels, lounges, restaurants, and retailers that cater to higher-income consumers.

“These festivals create more than just revenue; they create an avenue for direct feedback from consumers, and for people in the hospitality and lifestyle business to engage directly with brands,” he added.

However, the market continues to face structural challenges, including foreign exchange volatility, import dependence, and a thriving counterfeit trade that affects pricing and consumer confidence.

“Regulatory issues and FX challenges, since we largely import these wines and spirits. Also, the counterfeit market in Nigeria is highly lucrative,” he noted.

Industry players say policy clarity and enforcement will be key to sustaining growth, particularly in addressing fake products and stabilising the operating environment.

Igbokwe said: “There should be better regulation and stability in FX, which is already ongoing. A task force should be set up with the sole duty of clamping down on counterfeiting. There should also be tax reductions, and above all, support in building a proper tourism ecosystem.”

The event is scheduled to hold from October 2 to 4 at Exhibition Pavilion Abuja, with a series of pre-event tastings planned in the months leading up to it.