By Esther Olaifa, JKNewsMedia Reporter
AMID RECORD-breaking demand for machinery in the beverage and liquid food industry, Nigeria is emerging as a key battleground for global suppliers, with shifting trade dynamics and economic challenges shaping the market’s trajectory.
At a press conference in Lagos ahead of Drinktec 2025 dubbed the world’s leading trade fair for the beverage and liquid food industry—Germany’s Machinery and Equipment Manufacturers Association (VDMA) provided insights into market growth, global trade trends, and Nigeria’s strategic industry position.
According to Germany’s Federal Statistical Office, Nigeria remains the second-largest export market for German machinery in sub-Saharan Africa, trailing only South Africa.
In 2023, Germany’s exports to Nigeria reached €858 million (N1.42 trillion), with food processing and packaging machinery comprising €307 million (N509 billion).
However, Germany faces growing competition from China, which led with €87 million (N144 billion) in machinery exports, followed by Italy €64 million (N106 billion), India €56 million (N92 billion), and Germany €35 million (N58 billion).
Despite economic uncertainties, Nigeria remains dominant in Africa’s beverage industry. In 2024, the country led the continent’s soft drinks market, consuming over 53 billion litres—more than half of sub-Saharan Africa’s total volume.
Bottled water was the most consumed beverage, with sales reaching 48.7 billion litres, projected to rise by 27% by 2028.
Analysts also forecast a 28% increase in carbonated soft drink consumption and a 30% rise in energy drink sales.
Daniel Dellema, Project Manager for Market Intelligence at the Food Processing and Packaging Machinery Association, highlighted Nigeria’s rising alcohol consumption.
He said the country ranked third in Africa, behind South Africa and Angola, with total alcohol sales hitting 1.9 billion litres in 2024.
Beer dominated 84% of consumption, and forecasts predict a 51% increase by 2028, driven by urbanisation, economic recovery, and evolving consumer preferences, he disclosed.
Also, international brands continue to gain traction in Nigeria, intensifying competition for local producers. The expanding market has also attracted significant foreign investment, further fueling sector growth.
Dellema announced a session from September 15–19 in Munich, where Drinktec 2025 will showcase advancements in beverage production, focusing on digitalisation, AI, and sustainability.
Experts at the Lagos press conference emphasised AI-driven monitoring systems for enhancing efficiency, reducing downtime, and optimising resource use.
Machine learning is also being leveraged for real-time quality control.
Sustainability will be a key focus, especially in light of new European Union (EU) regulations promoting circular economies and waste reduction.
While beverage manufacturers are adopting recyclable packaging, energy-efficient production, and sustainable water usage practices to align with global environmental standards, he said.
Dellema then encouraged Nigerian producers to attend Drinktec 2025, saying, “You will find the right solutions to your challenges there, up to the multinationals.”
Tuesday’s event also addressed Nigeria’s pressing food security issues.
Dignitaries, diplomats from Germany, Poland, and the Netherlands, and senior Nigerian government officials discussed the urgent need for improved cold storage infrastructure.
They dwelt on reports which indicate that Nigeria produces 65 million tonnes of food annually, but 40% is lost due to inadequate cold storage, amounting to an economic impact of N3.5 trillion ($8 billion).
Following this, the Federal Government of Nigeria, through the Ministry of Agriculture and Food Security, is encouraging foreign investment in the cold chain sector.
Representing the Honourable Minister, Senator Abubakar Kyari, Mrs. Omolara Abimbola-Oguntuyi outlined strategies to enhance agricultural productivity through sustainable practices and improved market access.
Germany’s Consul-General in Nigeria, Weert Borner, acknowledged Nigeria’s challenges, including security concerns, high costs, low productivity, poor logistics, and climate change, reaffirming Germany’s commitment to supporting Nigeria’s agricultural and food processing sectors.
Lagos State Governor Babajide Sanwo-Olu highlighted that, with Nigeria projected to become Africa’s largest consumer market by 2050, the agrofood and plastprintpack Nigeria event is crucial in shaping the nation’s future.
He cited Lagos as a hub for agribusiness, food processing, and manufacturing, given its strategic location and expanding industrial base.
Fairtrade Messe Managing Director Paul Marz noted that the 2025 edition marks the event’s 10th anniversary, celebrating a decade of fostering innovation and collaboration in Nigeria’s agrofood and packaging industries.
The exhibition will feature participants from Austria, Bulgaria, China, Poland, Germany, France, India, Italy, Lebanon, the Netherlands, Nigeria, South Africa, South Korea, Spain, Turkey, Taiwan, and the UK.
The Netherlands’ Consul-General in Nigeria, Michel Deelen, reaffirmed the country’s long-standing trade partnership with Nigeria, highlighting opportunities to enhance agricultural productivity through Dutch expertise.
As Nigeria’s beverage industry continues to grow, the country already accounts for a significant share of Africa’s consumption.
Industry stakeholders anticipate sustained expansion, with Drinktec 2025 serving as a key platform for Nigerian businesses to explore innovative technologies, establish international partnerships, and navigate the evolving beverage and liquid food landscape.
