Nigeria: Coffee Extract Market 2024

Coffee Extract Market Size in Nigeria

In 2021, after two years of decline, there was significant growth in the Nigerien coffee extract market, when its value increased by 16% to $X. Overall, consumption continues to indicate a temperate increase. Over the period under review, the market hit record highs at $X in 2018; however, from 2019 to 2021, consumption failed to regain momentum.

Coffee Extract Production in Nigeria

In value terms, coffee extract production surged to $X in 2021 estimated in export price. In general, production showed a notable expansion. The pace of growth appeared the most rapid in 2016 when the production volume increased by 121%. Over the period under review, production hit record highs at $X in 2018; however, from 2019 to 2021, production stood at a somewhat lower figure.

Coffee Extract Exports

Exports from Nigeria

In 2021, the amount of coffee extracts, essences and concentrates exported from Nigeria soared to X tons, with an increase of 96% on the year before. In general, exports enjoyed a significant increase. The growth pace was the most rapid in 2017 with an increase of 219% against the previous year. The exports peaked in 2021 and are expected to retain growth in years to come.

In value terms, coffee extract exports soared to $X in 2021. Overall, exports saw significant growth. The pace of growth was the most pronounced in 2018 with an increase of 206% against the previous year. The exports peaked in 2021 and are likely to see steady growth in years to come.

Exports by Country

Benin (X tons) was the main destination for coffee extract exports from Nigeria, accounting for a 62% share of total exports. Moreover, coffee extract exports to Benin exceeded the volume sent to the second major destination, Cote d'Ivoire (X tons), fivefold. Niger (X tons) ranked third in terms of total exports with an 8.3% share.

From 2012 to 2021, the average annual growth rate of volume to Benin stood at +94.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Cote d'Ivoire (+133.6% per year) and Niger (+83.3% per year).

In value terms, Benin ($X) remains the key foreign market for coffee extracts, essences and concentrates exports from Nigeria, comprising 68% of total exports. The second position in the ranking was held by Niger ($X), with an 11% share of total exports. It was followed by Cote d'Ivoire, with a 9.4% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Benin totaled +95.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Niger (+59.6% per year) and Cote d'Ivoire (+59.4% per year).

Export Prices by Country

The average coffee extract export price stood at $X per ton in 2021, with a decrease of -27% against the previous year. In general, the export price continues to indicate a perceptible downturn. The pace of growth appeared the most rapid in 2016 an increase of 73%. The export price peaked at $X per ton in 2018; however, from 2019 to 2021, the export prices failed to regain momentum.

There were significant differences in the average prices for the major overseas markets. In 2021, amid the top suppliers, the country with the highest price was Niger ($X per ton), while the average price for exports to South Africa ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+87.0%), while the prices for the other major destinations experienced mixed trend patterns.

Coffee Extract Imports

Imports into Nigeria

In 2021, purchases abroad of coffee extracts, essences and concentrates decreased by -44.5% to X tons for the first time since 2017, thus ending a three-year rising trend. Overall, imports, however, recorded tangible growth. The growth pace was the most rapid in 2014 when imports increased by 65% against the previous year. Imports peaked at X tons in 2020, and then contracted dramatically in the following year.

In value terms, coffee extract imports dropped dramatically to $X in 2021. In general, imports, however, recorded measured growth. The pace of growth was the most pronounced in 2014 when imports increased by 113%. Over the period under review, imports reached the peak figure at $X in 2020, and then contracted markedly in the following year.

Imports by Country

The Philippines (X tons), Cote d'Ivoire (X tons) and China (X tons) were the main suppliers of coffee extract imports to Nigeria, with a combined 42% share of total imports. These countries were followed by Indonesia, Ghana, Malaysia and India, which together accounted for a further 27%.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Indonesia (with a CAGR of +62.1%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Cote d'Ivoire ($X) constituted the largest supplier of coffee extracts, essences and concentrates to Nigeria, comprising 40% of total imports. The second position in the ranking was held by India ($X), with an 8.1% share of total imports. It was followed by Malaysia, with a 5.9% share.

From 2012 to 2021, the average annual rate of growth in terms of value from Cote d'Ivoire amounted to +6.8%. The remaining supplying countries recorded the following average annual rates of imports growth: India (+16.3% per year) and Malaysia (-8.2% per year).

Import Prices by Country

In 2021, the average coffee extract import price amounted to $X per ton, approximately equating the previous year. In general, import price indicated a slight expansion from 2012 to 2021: its price increased at an average annual rate of +1.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, coffee extract import price increased by +14.1% against 2019 indices. The most prominent rate of growth was recorded in 2014 an increase of 29%. Over the period under review, average import prices attained the maximum at $X per ton in 2015; however, from 2016 to 2021, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was Cote d'Ivoire ($X per ton), while the price for the Philippines ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Malaysia (+8.6%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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