Nigerian baby food market expected to reach N1trn as women register more babies

Despite the economic difficulties plaguing many households, the future of the Nigerian baby food market looks very bright.

The positive indicators appear amid the continued rise in the birth rate and low contraceptive use among women.

Ripples Nigeria previously reported that in three years, a total of 18.6 million babies were registered nationwide despite six states not included in the report.

Data from the report which was obtained from the National Bureau of Statistics (NBS) and the National Population Commission confirmed a trend which was in line with a similar United Nations report that Nigeria would need to increase by 90% to reach 401 million by 2050.

The United Nations Children’s Fund (UNICEF) has also noted that at least seven million babies are born in Nigeria each year.

Food is essential for babies to help them develop properly, so regardless of economic challenges, increased population means a profitable market and increased sales for baby food manufacturers to inside and outside Nigeria.

A data report from Statista shows baby food revenue for industry players to be $3 billion ($1.24 trillion) in 2022.

He also noted that the market is expected to grow annually by 10.40% (CAGR 2022-2026).

Furthermore, a study by Ken Research on the outlook for the baby food market in Nigeria shows a market worth N200 billion for any investor due to a birth rate and fertility rate. students.

READ ALSO: Inflation rate hits 15.63% as food prices eat into Nigerian household incomes

“The future of the Nigerian baby food market looks quite promising given the positive growth and development indicators, the market is expected to register a positive CAGR of 11.6% in terms of revenue generated during the review period 2018-2023″, depending on the outlook. .

He added that new baby food products such as specialized baby food for infants with allergies, colic, premature babies, regurgitation and other similar issues may be launched in the near future.

Consumer goods players are taking advantage of this and introducing more products to cater to the children’s market.

To fully understand the trend, analysis of Nestlé Nigeria by Ripples Nigeria, the largest fast-moving consumer goods company listed on the Nigerian Stock Exchange and one of the largest baby food producers, shows revenue massive from its food products.

Some of its baby food products include Cerelac, SMA, NAN, Lactogen and Golden Morn.

Other drinks designed to meet the needs of children are Milo, Milo Energy Cube, Nescafé, Milo Ready-to-drink (RTD) and Nestlé Pure Life (some of these are also taken by adults).

Between 2015 and 2020, the contribution of the company’s food products to its turnover fluctuated between 59.7% and 63%.

In 2015, income from food contributed 90 billion naira (59.7%) out of a total income of 151 billion naira, and in 2016 it contributed 113 billion naira (62.3 %) to the N181 billion made during the period.

In 2017 and 2018, the food segment retained its position as a major contributor with 63%, having made N154 billion and N168 billion respectively, out of the N244 billion and N266 billion made during this period. .

In 2019, the segment contributed N176 billion (62%) of the N284 billion earned revenue. In 2020, it contributed N171 billion (59.81%) to the total revenue of N287 billion.

Also in the first nine months of 2021, the company recorded revenue of N154.33 billion from its food segment.

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