Bottled Water Market in Nigeria 2021

According to estimates, the Nigeria bottled water market is projected to reach a volume of 43.9 billion liters in 2020. Despite the economic impact of the pandemic, the market is expected to grow at a CAGR of 6.5% over the period 2021-2027, with bottled water sales in Nigeria anticipated to reach 69.4 billion liters by 2027. The growth of the market will be driven by the increasing focus on health and wellness among consumers. Moreover, bottled water is expected to recover more quickly from the pandemic disruption compared to other beverages, such as carbonated soft drinks (CSDs). In order to maintain its strong sales performance, it will be crucial for bottled water to improve its product penetration, particularly in traditional sales channels.

The Nigeria bottled water market is projected to experience significant growth, with an estimated revenue of USD 12.5 billion in 2020 and an expected increase to USD 34.3 billion by 2027, representing a CAGR of 14.0% throughout the forecast period. This growth can be attributed to Nigeria’s hot and humid climate, coupled with its large population, which has made bottled water a popular choice among consumers. Despite the disruptions caused by the pandemic, still spring bottled water is expected to recover quickly compared to other soft drinks. To maintain good sales performance, it is crucial to improve product penetration, particularly in traditional sales channels.

The COVID-19 pandemic had a limited impact on the bottled water market in Nigeria in 2020, with the on-trade channel experiencing weak volume growth due to the closure of bars, restaurants, and other hospitality outlets. However, the off-trade channel, which includes supermarkets, convenience stores, and other retail outlets, saw higher growth as consumers shifted towards purchasing bottled water for home consumption. Despite the overall slowdown in consumer spending during this period, the bottled water market in Nigeria continued to grow, primarily driven by the off-trade channel.

In recent years, revenue growth in the bottled water market in Nigeria has outpaced volume growth, largely due to price increases for bottled water and fluctuations in exchange rates. This trend is expected to continue in the coming years, as bottled water manufacturers and distributors continue to focus on premiumization and product differentiation. Furthermore, the increasing consumer focus on health and wellness is expected to drive demand for premium bottled water products, which are perceived to be healthier and of higher quality.

Report Scope

By product type: sparkling water, functional water and still water (further divided into still natural mineral water, still spring water, and still purified water)

By packaging: rigid plastic bottles (PET bottles and others), glass bottles and others

By distribution channel: grocery retailer, supermarkets and hypermarkets, small grocers, bars and HoReCa, forecourt stores, and others

The report presents an overview of the bottled water market in Nigeria, including an analysis of leading companies, as well as market analysis by product type, packaging type, and distribution channels. The report also examines the potential of the bottled water industry in Nigeria, providing statistical data on market size, market share, growth rate, and forecasts.

The bottled water market in Nigeria has a highly competitive landscape with low concentration and a multitude of brands. According to recent data, the leading companies in the Nigerian bottled water market hold a market share of no more than 2%, and the top three companies collectively hold a market share of no more than 3.7%. Major industry players include Nestle S.A., Artee Group, Paramount Trading & Industries Nig Ltd., PepsiCo, Inc., Rite Foods Limited, SABMiller plc, The Coca-Cola Company, United Africa Company of Nigeria. Nestle S.A. held a leading position in the Nigerian bottled water market in 2019 and maintained this position in 2020. The company is positioned in the high-end market and has gained widespread recognition through positive marketing and distribution efforts.