Nigerians spent an estimated N1.41 trillion on beer, malt and spirits in the first half of 2026, as the country’s three largest brewing companies recorded stronger revenues and improved profitability despite inflation, rising costs and changing consumer habits.
The figure, derived from the half-year financial results of Nigerian Breweries, International Breweries and Guinness Nigeria, represented about 90 per cent of Nigeria’s formal brewing market.
The combined revenue growth was driven by price adjustments, sustained demand across beverage categories and continued investments in production and marketing.
Nigerian Breweries, the country’s biggest brewer, led the market with N803.7 billion in revenue, rising from N738.1 billion recorded during the same period in 2025.
International Breweries recorded N342.1 billion in revenue, maintaining a similar performance to the previous year’s N341 billion, while Guinness Nigeria posted an 11.8 per cent increase to N265 billion as it expanded its beverage portfolio under new management by Tolaram Group.
Despite a challenging economic environment, the combined results showed resilience in Nigeria’s formal beverage industry, with companies benefiting from higher prices introduced earlier in the year to manage rising production expenses.
The impact of the adjustments became more visible in the second quarter, when combined revenue climbed to N696 billion between April and June, compared with N640 billion in the same period of 2025.
The three major brewers also recorded significant improvements in earnings, with combined profit before tax rising by nearly 24 per cent to N269.4 billion in the first half of 2026, compared with N217.5 billion a year earlier.
Nigerian Breweries posted a pre-tax profit of N156.3 billion, improving its pre-tax margin to 19.4 per cent from 17.9 per cent.
International Breweries recorded the strongest margin growth, with N74.8 billion in pre-tax profit and a 21.9 per cent margin, supported by reduced raw material costs.
Guinness Nigeria also strengthened its financial position, increasing its pre-tax margin to 14.5 per cent from 10.1 per cent, helped by lower borrowing costs and reduced foreign exchange pressures.
The improved performance marks a recovery from the financial difficulties experienced in 2023 and 2024, when the naira’s depreciation and foreign exchange losses placed heavy pressure on the sector.
Despite stronger earnings, the industry continues to face changing consumer preferences, especially among younger Nigerians who are increasingly moving away from traditional beer towards spirits, wines, ready-to-drink beverages and non-alcoholic alternatives.
To remain competitive, brewers have expanded their product offerings.
Guinness Nigeria, for example, has grown beyond beer with brands such as Captain Morgan, Gordon’s, Orijin, Smirnoff Ice, Malta Guinness and Dubic Malt.
The companies also maintained aggressive spending on brand promotion and expansion, investing N130.6 billion in marketing and advertising.
Nigerian Breweries spent N71.9 billion, International Breweries invested N42.6 billion, while Guinness Nigeria committed N16.1 billion.
Combined capital expenditure stood at N103.3 billion, with International Breweries leading at N56.2 billion, followed by Nigerian Breweries at N30.3 billion and Guinness Nigeria at N16.8 billion.
Although the companies reported stronger financial results, investors responded cautiously amid concerns over whether the improved performance can be sustained in the face of economic uncertainty and changing consumer behaviour.
Nigerian Breweries shares traded around N74, down about 11 per cent over six months, while Guinness Nigeria’s shares rose to about N376, gaining seven per cent in the same period.
International Breweries traded around N11 per share, representing a 27 per cent decline over six months despite its improved profitability.
The mixed market reaction highlights the challenges facing Nigeria’s brewing sector as companies balance higher earnings with inflation, currency pressures and evolving consumer tastes.
