Despite the economic crunch and the challenges of doing business in Nigeria, the consumption of packaged water popularly known as bottled water will continue to increase.
This, experts attributed to lack of portable water in Nigeria.
They said this at the just concluded agrofood & plastprintpack Nigeria trade show in Lagos, Nigeria, to herald Drinktec, the world’s leading trade fair for the Beverage and Liquid Food Industry coming up in September 2017, in Germany.
According to statistics sourced by Euromonitor International, Nigeria rank 4th in the top 10 market for soft drinks behind USA, China and Mexico, with a consumption of 38.682 million litres in 2016. The figure is expected to increase to 51.422 million litres by 2020 with a projected rate of 32.9%.
But, in the top 10 markets for alcoholic drinks, the country rank 26th with a consumption of 1.987 million litres in 2016. The figure is expected to increase to 2.374 million litres by 2020, amounting to 19.5% growth rate.
Head of Marketing Development with VDMA (German Engineering Federation) Food Processing and Packaging Machinery Association, organisers of Drinktec, Martina Claus, said lack of portable water was majorly responsible for the increased consumption rate of bottled water.
She said, the beverage industry will continue to be a money spinner and will continue to attract huge investments.
“The market for beverages in the country and indeed in the world is far from saturation, as it will continue to take on new comers,” she said.
Continuing she added: “Global sales for 2015 amounted to 1.000 billion euro and it’s expected to rise to 2.300 billion euro in 2020”.
In spite of the huge opportunities in the sector, she cautioned that, like every other sectors challenges abound, like; changing consumer habits, preferences, intense competition and high cost pressure, Laws and regulations and volatile raw materials.
Contrary to the believe that businesses in the sector may nose-dive following the economic crunch, Michael Kloss, Managing Director KHS Nigeria said the case may not apply to the country as Nigeria’s beverage consumption is innate.
“The good thing about Nigerians is that, irrespective of your mood, you are consuming, whether you are sad or happy you are consuming which will always add up to the total sales in the sector.”
Drinktec, according to organisers, takes place every four years. The last time it was held was in 2013. It attracts stakeholders from the beverage industry from all parts of the world. It is expected to hold between September 11 and 15 in Germany.