The Nigeria Food & Drink Report has been researched at source, and features latest-available data covering food, drink and tobacco consumption, expenditure, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes covering leading multinational and national food companies; and analysis of latest industry news, trends and regulatory developments in Nigeria.
Nigeria Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food, drink and tobacco industry, and the mass grocery retail market in Nigeria.
Independent 5 year Food and Drink industry forecast for Nigeria
Original Food and Drink market research and Food and Drink sector trend analysis for Nigeria.
Competitive intelligence, regional Food and Drink company rankings and SWOT analyses on international and domestic Food and Drink companies in Nigeria.
Key Benefits of Report
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Benchmark It’s Independent 5-year Food and Drink Industry Forecasts on Nigeria to test other views – a key input for successful budgeting and strategic business planning in the Nigerian Food and Drink market.
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Target Business Opportunities & Risks in Nigeria through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments.
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Exploit Latest Competitive Intelligence & Company SWOTS on your competitors and peers through company rankings by sales, market share and ownership structure – includes multi-national and national companies.
Coverage
Executive Summary
At-a-glance overview of It’s latest industry forecasts, and a summary of headline news events from the last quarter.
Business Environment Rankings
Cross-border analysis of the region’s key markets, ranking them in order of competitiveness from an investor angle. Taking into account, economic risk, political risk, mass grocery retail sales growth, market entry potential, possible barriers to entry and per-capita consumption, It provides a unique study on the region’s business environments for the retail and food & drink industries.
5-Year Retail Forecast
Divided up into six sections, It’s retail chapter provides insights into each market’s mass grocery retail industry, culminating in a 5-year forecast for the sector. The chapter includes the following elements:
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Regional Overview - complete with data, an overview of the size of the region’s market
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Market Overview - an outlook of the structure of the market, introducing the key players and discussing underlying trends
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Industry Developments - analysis and explanation of industry trends and how these could encourage or prevent further investment
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Company Developments - a summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results
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Industry Forecast Scenario - Historic data series and 5-year forecasts to end-2011 for growth or decline of grocery retail formats, such as supermarkets, hypermarkets, convenience stores and co-operatives
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Macroeconomic Outlook - 5-year forecasts for headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt
5-Year Food and Drink Forecast
Comprising five sections, It’s Food & Drink chapter provides analysis of each market’s Food & Drink industry, culminating in a 5-year forecast for the sector. The chapter includes the following elements: Regional Overview, Market Overview, Industry Developments, Company Developments and a 5-Year Forecast. This section contains a historic data series and forecasts to end- 2011 for key indicators including food consumption (US$mn), food expenditure (% household spending), canned food sales (‘000 tonnes); canned food sales, value (US$mn); confectionery sales (‘000 tonnes); confectionery sales, value (US$mn); coffee sales (US$mn); tea sales (US$mn); alcoholic drinks sales (US$mn); and soft drinks sales (US$mn).
5-Year Tobacco Forecast
Overview and analysis of structure, industry developments and forecasts for the tobacco market.
SWOT Analysis
At-a-glance perspective on the strengths, weaknesses, opportunities and threats facing each market’s Food & Drink industry. It also provides similar economic and business environment studies.
Competitive Landscape & Profiles
Illustration of the industry via rankings tables comparing revenues, number of outlets, number of employees and registration dates. It analyses each company’s performance, market position, strategy and investment potential.
Executive Summary
Although there are certainly still difficulties along the way, Nigeria's food and drink industry is nevertheless showing signs of steady development, as discussed in It's recently published Nigeria Food & Drink Report for Q207. In May it was announced that Nigeria will finally begin the local production of glucose syrup which will provide a much needed boost to the local food production industry. This factory is the first of its kind in the country and will have a capacity to produce 30,000 metric tonnes of glucose syrup per annum. According Ekha Agro Farms which is running the project, this factory will save the country around US$15mn a year in import substitutions and will provide employment for over 20,000 Nigerians through the network of out-growers and contract farmers.
With few exceptions, the production of processed foods remains negligible in Nigeria, and imports are required to meet demand. This situation has been caused by a lack of investment in the country's inefficient infrastructure. Following the oil boom of the early 1970s, the agricultural sector was neglected as food and cash crop production dropped and oil revenues allowed the government to import massive amounts of agricultural products. The Nigerian government claims to support domestic food producers through import bans on various products, high import duties and a dual inspection policy. Yet it is doubtful that the government's protectionist measures have produced the desired effect, as the problems of the food and beverage processing industries are mostly structural in nature and will not be solved by merely blocking imports. Therefore, such investments in the local processing industry are a step in the right direction. This project will also benefit from the fact that finished products made in Nigeria are entitled to a 20% tax rebate when exported to the West African region, thereby providing a ready market for goods produced using the glucose syrup.
In other industry news, in June Nigerian Breweries announced that 2006 operating profits were NGN16.9bn (US$132.9mn), representing a year-on-year increase of 10% while 2006 profits after taxes were NGN8.3bn (US$65.2mn), up 32%. Meanwhile, 2006 turnover reached NGN86.2bn (US$677.3mn), rising by 8%. The Nigerian drinks industry is one of the country's most dynamic, with beer the most popular drink by far, accounting for an estimated 96% of the total volume of alcohol sold in the country.
Although the beer industry took a bit of a knock in 2000 when 12 of the country's 15 northern states introduced Islamic Sharia law, thereby banning the sale and consumption of alcohol, this has not put as much of a dent into sales as one would have thought. In fact, some companies have recognised this ban as a potential business opportunity. In late 2006, Nigerian Breweries introduced the Fayrouz non-alcoholic drink to the market in order to appeal to Nigeria's large Muslim population. As incomes slowly rise, this will fuel growth across the entire food and drink industry, and as Nigerian Breweries shows, by adopting to local conditions and demand, companies can experience real growth.
