Coffee, husks, skins and substitutes market in Nigeria

Earlier Report Observations

Between 2018 and 2020, Nigeria's coffee market volume initially grew to 4 056 t before contracting to 3 452 t. This period saw imported brands flood the market, placing pressure on domestic production which gradually declined. The entry of new player Happy Coffee, with its Coffee Experience Centers and market-fit products, aimed to stimulate local demand and entrepreneurship in the sector. Import volumes rose significantly, peaking at 2 607 t in 2020, while a temporary spike in exports to 962 t that same year reduced net domestic availability.

From 2021 to 2023, market volume stabilized around 3 390 t before falling to 3 088 t in 2022 and then surging sharply to 4 799 t in 2023. This recovery was driven by a rebound in imports to 3 044 t, as rising global coffee prices made foreign coffee more expensive and encouraged a consumer shift towards local alternatives. Several new local coffee brands emerged, catering to the premium instant coffee segment and growing middle-class demand. However, domestic production remained constrained around 1 800 t due to unattractive prices for farmers, poor processing practices, and low investment.

In 2024, early data shows imports of 1 450 t against minimal exports, indicating continued import reliance. The market was influenced by a significant global price surge, with Arabica coffee prices rising 58% year-on-year, further incentivizing local consumption. Political will emerged to establish a National Tea and Coffee Development Council, aiming to provide a policy framework for sectoral support, technology investment, and quality improvement to harness market opportunities.

Production coffee, husks, skins and substitutes in Nigeria

In kind, 2017-2020, t

Top producers of coffee, husks, skins and substitutes, 2017-2020

World map of production of coffee, husks, skins and substitutes, 2017-2020

Nigeria's production of coffee, husks, skins, and substitutes has declined for the third consecutive year. In 2020, the country produced 1 806 tonnes, marking a 2.5% decrease from the previous year. Looking at the period from 2017 to 2020, production fell by 4.4%, which translates to an average annual decline of 1.5%.

Annual dynamics of production in Nigeria in kind, 2017-2020, t

Exports coffee, husks, skins and substitutes from Nigeria

Exports in kind, t

In 2020, Nigeria's cross-border shipments of coffee, husks, skins, and substitutes reached 962 tonnes. This represents a dramatic increase of 965.9% compared to the year before.

Annual dynamics of product's exports from Nigeria in kind, 2017-2020, t

From 2017 to 2020, India and Indonesia consistently accounted for 83.9% of Nigeria's total exports in volume terms. This high concentration highlights a market dominated by these two key destinations, with a long tail of smaller markets making up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nigeria in kind, 2017-2020

Exports in value, K $ US

In 2020, Nigeria's exports of coffee, husks, skins, and substitutes were valued at 1 673 thousand US dollars. This figure shows a sharp rise of 2,758.7% from the previous year.

Annual dynamics of product's exports from Nigeria in value, 2017-2020, K $ US

Between 2017 and 2020, India and Indonesia were the primary destinations for Nigeria's exports in value terms, jointly capturing 81.7% of total export flows. The remaining share was distributed among various other markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nigeria in value, 2017-2020

Imports coffee, husks, skins and substitutes to Nigeria

Imports in kind, t

Nigeria's imports of coffee, husks, skins, and substitutes have increased for the third year in a row. In 2020, the country imported 2 607 tonnes, which is 13.6% higher than in 2019. Over the 2017-2020 period, imports surged by 426.2%, with a compound annual growth rate of 73.9%.

Annual dynamics of product's imports to Nigeria in kind, 2017-2020, t

Throughout 2017-2020, China, the Philippines, and Malaysia were the key sources for Nigeria's imports in volume terms. China accounted for 35.2% of imports, the Philippines for 25.7%, and Malaysia for 14.8%. Together, these three countries made up 75.8% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nigeria in kind, 2017-2020

Imports in value, K $ US

The market exhibited volatility during the observed period. Imports reached their lowest point in 2018 at 1 645 thousand US dollars, with a 37.1% decline that year. They then rebounded sharply in 2019, increasing by 135.5%. In 2020, imports peaked at 4 916 thousand US dollars, showing a steep rise of 26.9% compared to 2019. Overall, from 2018 to 2020, the value shifted threefold.

Annual dynamics of product's imports to Nigeria in value, 2017-2020, K $ US

From 2017 to 2020, Malaysia, the Philippines, and China were the main suppliers of coffee, husks, skins, and substitutes to Nigeria in value terms. Malaysia contributed 31.5% of imports, the Philippines 26.0%, and China 14.5%. Combined, these three countries comprised 71.9% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nigeria in value, 2017-2020