Nigeria’s population is fascinating. More fascinating is the prospect of setting up an energy drink factory with a unique product that targets young people because Nigeria has the most youthful population in west Africa.
It is no doubt that the population of Nigeria presents several opportunities for businesses or energy drink manufacturing companies who are new in the food and drink industry. Reports also show that energy drinks are more consumed in Nigeria than in developed countries.
Current Market Conditions for Energy Drink in Nigeria
Consumers for Energy Drink in Nigeria
Research by Nairametrics shows that energy drink production is expected to grow exponentially due to the perception amongst the young adult population that energy drinks boost sexual desires, and it boosts energy.
In a recent market survey by Nairametrics, consumers expressed their love and gratitude for different energy drink brands. The majority of the consumers based their preferences on smoothness, taste, smell, and the presence or absence of caffeine. It was also discovered that prices are not a significant consideration to the consumers since the prices are relatively close.
Most consumers said they preferred Power Horse, Monster, Bullet, and Red Bull energy drinks. The reason they gave was that these brands are always available at local restaurants, bus stations as well as retail stores.
Market Size for Energy Drink in Nigeria
The market size data of energy drink consumption in Nigeria is quite challenging to determine, but the latest data from the National Bureau of Statistics (NBS) reveals that Nigerians spend up to N208bn on energy drinks yearly and this is expected to increase.
Market Growth for Energy Drinks in Nigeria
Due to the high demand for energy drinks in the country, energy drink production is expected to increase exponentially. As the demand for these drinks increases, so will labour increase, and there will be more job opportunities for the youths in any energy drink factory.
Energy Drink Leading Brands and Key Players in Nigeria
Nigerians’ love for energy drinks is evident in the brands that have saturated the market in recent times. Most of the energy drinks sold in the country are imported, and this has made the prices to keep fluctuating due to the foreign exchange market.
The key players in this industry include Bullet Energy Drink from Sun Mark Limited, Red Bull drink from Red Bull GmbH, a reputable Austrian company, Monster Energy drink from Coca-Cola, and Power Horse by S. Spitz GmbH, another Austrian company.
Hence the opportunity for entrepreneurs to set up a local energy drink production.
Why is it Worth Investing in an Energy Drink Production in Nigeria?
Nigeria’s energy drink sector is a lucrative industry, with market research forecasting a yearly consumption growth of over 6.5% through 2022. This is slightly an increase in the 5% annual growth experienced between 2014 and 2016, which made the average consumption to be about 25.5 litres according to WHO. It is expected that the demand for energy drinks will continue to increase, hence the need for more investors to cater to the needs of consumers.
How Africa Processing can help you
Africa Processing can assist in business plan, food product development, factory engineering, machine and equipment configuration, production startup and on-site training. We can help you setup and run a successful energy drink business in Africa. Contact us today and let’s start talking about your energy drink project!