Breakfast Cereals in Nigeria

PROSPECTS

Changing tastes and less time to cook boost breakfast cereals’ demand

Over the review period, prior to the 2016 recession, breakfast cereals saw strong demand due to growth in urbanisation, increase in the child population, increase in professional employment, and adoption of Western eating habits. As the economy now recovers, the continued population growth, particularly amongst the young urban population, is expected to help sustain demand for breakfast cereals over the forecast period.

Children’s breakfast cereals increasingly favoured for the morning routine

Strong child population growth also contributes to breakfast cereals’ growth, as children are a major consumer group for breakfast cereals. In fact, children’s breakfast cereals showed the second strongest value growth in 2019 (second to flakes).

Strong competition calls for producers to get inventive

Strong competition is also expected to continue driving growth within breakfast cereals over the forecast period. Manufacturers have been innovative in providing small pack sizes that help with affordability of brands among lower-income consumers, whilst also increasing the range of products, with a wide choice of flavours which are appealing to young people.

COMPETITIVE LANDSCAPE

Nestlé maintains top place thanks to Golden Morn and smaller packaging options

Nestlé Nigeria Plc continues to lead breakfast cereals in value terms in 2019, after taking the top place from Kellogg Co in 2016 in the economic crash. This is partly due to the ongoing popularity of its Golden Morn brand.

Novelty branding and sweet tastes boost popularity of children’s breakfast cereals

Nestlé Nigeria Plc also led the way in innovation in 2018 to 2019, by launching an extension of its popular Golden Morn, specifically targeted to children, called Golden Morn Puffs. Golden Morn Puffs is packaged in the standard folding carton pack and aims to compete against children’s breakfast cereals brands that have performed well, such as Kellogg’s Coco Pops.

Domestic brands continue to perform well thanks to traditional tastes

Domestic brands have continued to perform well in Nigeria breakfast cereals, with the poor economy since 2016 helping to boost their standing in the category, as more expensive international brands lost value share when the local currency was severely depreciated. Aside from the lower prices and smaller pack sizes, one of the main advantages domestic players have over foreign competitors is a more detailed knowledge of the traditional tastes and preferences of Nigerian consumers.

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