Nigeria's Champagne Consumption Plummets To Seven-Year Low As Purchasing Power Weakens

Nigeria's champagne consumption made a sharp decline to a seven-year low as weak purchasing power dampened consumer appetite for luxury products.

According to data retrieved by AllNews from Comité Champagne, a trade association that tracks the volume and value of exports from France, Nigerians' champagne imports plunged from 569,440 in 2019 to 304,199 units in 2020.

Nigeria is renowned as Africa's biggest champagne market. However, the champagne business has been choked by a heavy devaluation of the naira, which has weakened purchasing power of Nigerians. 

Over the past year, prices of goods and services have surged significantly as Nigeria's inflation rate surged over 17 percent according to data from the Nigerian Bureau of Statistics (NBS).

Luc Belaire Rose, one of the cheapest Champagne brands in Nigeria has seen price increase over the past year from N17,500 to as high as N20,500 in stores today.

A recent report by the World Bank showed that at least seven million Nigerians have been swept below the poverty line due to rising inflation. This points to a diminishing middle-class and consequently, a smaller consumer base. It also reported that in 2020 the Nigerian economy shrank by 1.8%, its deepest decline since 1983.

“As of April 2021, the inflation rate was the highest in four years. Food prices accounted for over 60% of the total increase in inflation,” it said in a separate release.

More Nigerians are now exploring cheaper options, as it is becoming increasingly difficult to match growing prices with their average income.

Imports were also pierced in 2020 by pandemic-induced lockdowns, which crippled demand for the luxury drink as consumers were forced to stay indoors. Champagne is mostly used in parties, festivals, and other events as a symbol of luxury and glamour. Therefore, restrictions on public gatherings crippled the need to use the drink.