Continuing our exploration of the Nigerian CSD market, let’s delve into a crucial aspect: the next generation of consumers. We are certain that there is still a lot of room for growth; begging the question of who the right potential consumers that will drive this growth are.

Though 53.98% of the total population were rated between the ages of 15 and 64, a Statista demographic analysis of Nigeria showed that millennials or Gen Y (people born between 1981 to 1996); and Gen Z (people born between 1997-2012), collectively represent about 50.9% of the total population with the Gen Z populace accounting for 31.8 percent, compared to 19.1% for the millennial populace.

Gen Z, in particular, represents a dynamic and influential demographic that CSD brands can engage with effectively. However, Gen Alphas are also worthy of mention; predicted to be the largest generation in history by 2025, and despite their low earnings (or no earnings at all), the CSD segment falls well within their purchasing and influencing power.

Why Gen- Alpha and Z?

Gen Alphas are no doubt the next generation of consumers, even though they do not have significant buying power as at today, they have a huge influence on household purchases; 87% of their parents already say that their children influence their purchase decisions consistently.

As the first generation born entirely in the 21st century, Gen Alpha has advanced, smarter technology at their fingertips. It’s everywhere, from education to social interactions and beyond. Statistics show that 65% of children ages 8 to 11 either own or have access to a smartphone at home. Consequently, they’re more empowered than any other generation; unlimited access to information gives this generation unprecedented awareness of social issues and the resources to fight them, and so we are looking at a very informed, opinionated and influential member of the household; almost a completely different organism altogether, that must be studied and understood.

Gen Z, on the other hand, brings the buying power to the table. Though many Gen Z consumers are currently single, some are starting families, which could shift their purchasing habits towards household staples. Their evolving preferences and behaviours will significantly impact market dynamics as their purchasing power grows alongside their entry into adulthood. Their embrace of new behaviours often sets the tone for future trends; understanding their preferences is crucial for informing product development and marketing campaigns that resonate with this influential demographic.

A recent study found that 58% of Gen Z Nigerians are consciously reducing their sugar intake, driven by a heightened awareness of health issues such as obesity and diabetes This health consciousness is steering them towards healthier beverage options, including natural and organic products. They possess a rich and adventurous palate and desire for unique experiences to create flavour innovation opportunities; 65% of Gen Z consumers in Nigeria are interested in trying new and exotic flavours; these flavours will also transcend the current fruity flavours and will eventually move cross-category i.e. a mix-match of food flavours entering the beverage space and becoming the standard. This group values novelty and diversity in their consumption choices. According to Food Insights, “The most-followed eating patterns among Gen Z are calorie-counting (27%), clean eating (26%), mindful eating (19%) and plant-based eating (19%).”

Despite being constantly bombarded with information and stimuli, brands can still capture their attention and encourage brand interaction at a deeper level, by embracing novelty and creating a sense of “must-have” experiences;

Innovation: Go beyond the traditional cola and citrus flavours, to explore unique flavour profiles inspired by global trends, local ingredients, or even collaborations with popular food bloggers or chefs.

The Sparkling water startup Liquid Death, is an example of a genius branding innovation, that resonates with the young target audiences. They’ve shed the typical clean and healthy water image, opting for a rebellious, heavy metal-inspired aesthetic instead. This, coupled with a humorous and irreverent social media presence, disrupts the traditional beverage category and resonates with a younger demographic.

Though American, African brands can take their cue from the success of this example as Gen Z and Alpha are global citizens. The internet and constant information flow have fostered a cultural common ground across geographical borders, making these generations as informed and socially aware as their peers anywhere in the world, with aspirations closely aligned across borders and socio-cultural divides.

Limited Edition Packaging: Elevate your brand’s visual appeal with eye-catching, limited-edition packaging. Partner with Nigerian artists to create limited-edition can designs that reflect local culture or current trends. Remember the wildly successful Coca-Cola “Share a Coke”? Now is a great time to do a lot more of that!

In the case of Coca-Cola, that particular campaign took personalization mainstream, putting people’s names on Coke cans. Today, limited-edition packaging can achieve the same level of engagement, but with an African twist. Brands can partner with local Nigerian artists to create designs that reflect their brand and celebrate Nigerian culture. Think vibrant Afrobeat-inspired patterns, or artwork that references popular Nollywood movies. You could even incorporate heat-reactive designs or AR features that come to life when scanned with a smartphone, similar to the personalized names on Coke cans. This approach fosters a sense of connection and creates a unique collectable for your customers, driving brand loyalty and social media buzz. Coca-Cola recently launched an AI-powered limited-edition product, Coca‑Cola® Y3000 Zero Sugar; a futuristic—and optimistic—visual identity that was co-created with artificial intelligence.

Coca‑Cola® Y3000 Zero Sugar was co-created with human and artificial intelligence by understanding how fans envision the future through emotions, aspirations, colours, flavours and more. Fans’ perspectives from around the world, combined with insights gathered from artificial intelligence, helped inspire Coca‑Cola to create the unique taste of Y3000.

Interactive Online Campaigns: Don’t just sell a drink, create an experience. Develop interactive online campaigns that leverage Gen Alpha and Gen Z’s savviness and desire to engage digitally. Flavour-creation contests, partner with popular gaming platforms for in-game product placement, or launch AR filters on social media that allow users to virtually “try on” limited-edition flavours and share their creations with friends. Remember the global phenomenon of Pokémon Go? It wasn’t just a game; it was an immersive experience that had people glued to their phones, exploring their surroundings and interacting with the virtual world. Today’s Gen Alpha and Gen Z consumers crave similar engagement.

To successfully capture this young audience in the coming years, more brands will have to explore creative ways of developing interactive online campaigns that tap into their digital expertise. Imagine flavour-creation contests where users can mix and match virtual ingredients to design their dream drink. Partner with popular gaming platforms to incorporate your product into existing games, offering limited-edition in-game rewards. Or, launch social media AR filters that let users virtually “try on” different limited-edition flavours, customize their experience, and share their creations with friends.

This gamified approach leverages the engagement power of interactive experiences, similar to Pokémon Go, but with a delicious twist. It not only promotes your brand but also fosters social sharing and brand advocacy among your target audience.

Furthermore, by understanding the preferences and values of these audience groups, brands can develop a competitive edge and secure brand loyalty for the future. Further research can offer a deeper understanding of this crucial consumer segment, enabling you to refine its strategies and maximize its market potential. It’s not just about understanding them but also being able to map their future choices for them.

Like Steve Jobs said a long time ago “Don’t give the customers what they want; our job is to figure out what they’re going to want before they do”.