In 2021, baby food is expected to resume sales growth as the country begins to recover from the recession caused by the COVID-19 pandemic. Nevertheless, the economic conditions will remain poor in 2021.
As companies struggle with reduced margins due to high production/import costs and the inability to pass strong price increases onto cash-strapped consumers, new product development with the category has been quite muted in 2020/2021. Nevertheless, Peak, the leading dairy products and alternatives brand, was introduced into dried baby food and milk formula by FrieslandCampina in 2020.
Local baby food producers are increasing their competitive presence in 2021 and have an opportunity to take advantage of high prices and declining demand for imports (although many of these local producers are also affected by rising raw materials and packaging prices). For example, Jaden’s (by August Secrets) and Baby Grubz (by Baby Grubz) are becoming increasingly available on retailers’ shelves.
With the country set to see the economy stabilise post-pandemic, baby food will make a full recovery by 2022 and continue growing throughout the forecast period as consumer confidence returns. Demand for the category will be supported by the rising demographic of children and young adults as well as improving disposable incomes.
The child population in Nigeria is expected to continue to rise strongly over the forecast period, in turn supporting the further growth of baby food. Although the birth rate is declining, the overall population is growing.
The recent entry of local producers, particularly within prepared baby food is expected to boost variety and innovation in the category, leading to growing demand over the forecast period. Until the entry of Baby Grubz in 2018, prepared baby food had been completely dominated by foreign, imported, brands.
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Understand the latest market trends and future growth opportunities for the Baby Food industry in Nigeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Baby Food research and analysis database.
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