Breakfast Cereals in Nigeria

PROSPECTS

Growth in the young urban population is set to spur demand

Population growth, particularly amongst the young urban population, is expected to help sustain demand for breakfast cereals over the forecast period. As the urban population grows, consumers are expected to continue to shift from traditional breakfasts, such as pap (corn meal), to more convenient breakfast cereals.

Local production and growing competition drive growth

Growing competition and local production are spurring the performance of breakfast cereals, with strong growth seen in 2018. In particular, the Kellogg’s Coco Pops and Kellogg’s Corn Flakes brands helped to boost sales, as they are now produced locally and are available in a small pack size of 40g, which makes them affordable for consumers with lower disposable incomes.

Health and wellness trend

Health and wellness is likely to be one of the most influential trends when it comes to new product developments in breakfast cereals over the forecast period. Health-oriented categories such as hot cereals are expected to witness new launches, whilst manufacturers in other categories, such as flakes, will also try to capitalise on rising health awareness amongst consumers by introducing new products that are low in salt, sugar and artificial flavours, or fortified with vitamins and minerals.

COMPETITIVE LANDSCAPE

Nestlé Nigeria leads breakfast cereals

Nestlé Nigeria led breakfast cereals in Nigeria in value terms in 2018, due to the popularity of its Golden Morn brand. Golden Morn is made from the local African cereal crop, maize, as well as using soya, which is considered to be quite healthy.

Kellogg Tolaram Nigeria ranks second

The second ranked company in breakfast cereals in 2018 was the recently created (in 2016) Kellogg Tolaram Nigeria, which markets the locally manufactured variants of Kellogg’s brands in Nigeria. The company’s strategy of producing small pack sizes enabled the brand to withstand the harsh effects of the economic slowdown in Nigeria, as it made its brands more affordable.

Small pack sizes boost sales

Packaging in smaller sizes is a successful strategy which was originally adopted by local companies in this category, such as Nasco Foods Nigeria and Kneipe Nigeria, and more recently adopted by the representative of the multinational Kellogg when the economic slowdown significantly affected its sales. Other packaged food categories, such as powder milk, have seen success in reaching lower-income consumers through smaller pack sizes, so it is expected that competitors in breakfast cereals will continue to focus on offering a variety of pack sizes over the forecast period.

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