In comparison to other sectors in the worldwide beverage industry, the market for packaged or bottled water has the biggest share of the global non-alcoholic beverage business (54.5% as of 2020). Meanwhile, the global carbonated drinks industry accounts for the second largest share (41.3%) of the global soft drink industry during the same period, owing to an increasing variety of products in the market as leading industry players continue to develop new product lines in response to changing customer preferences, particularly as a result of rising health consciousness. Overall, the global beverage industry is highly competitive and dominated by a few major multinationals. As the global economy continues on its recovery path in the aftermath of the Coronavirus (COVID-19) pandemic, there are increasing prospects for increased bottled water and carbonated drinks globally.
In the Nigerian context, the Nigerian Carbonated drinks market is currently estimated at $16.9 billion (equivalent to ₦12.5 trillion) and is expected to grow at a compound annual growth rate of 16.6% between 2023 to 2027; the Nigerian bottled water industry has also witnessed a remarkable surge in revenue, to approximately ₦938.6 billion as at 2022 year-end. While we note the large market size for both carbonated drinks and bottled water, the Nigerian Carbonated Drinks and Bottled Water Industry (“the Industry”) remains challenged by the country’s weak macroeconomic environment as well as the newly introduced Sugar-Sweetened Beverage (SSB) and 20% ad-valorem taxes of years 2021 and 2022 respectively.
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