Butter and margarine performed well in 2017, with retail volume sales growing by 2% and current value sales by 13%. This was a marked improvement on 2016, when the category saw retail volume and current value sales decline by 27% and 4%, respectively, due to economic recession and the sharp price hikes that resulted from the depreciation of Nigeria’s currency. The category’s recovery in 2017 was supported by modest growth in the Nigerian economy. Margarine and spreads in particular performed well, as these product types are commonly consumed as a complement to bread, especially among Nigeria’s fast-growing urban population. Moreover, despite price hikes, the importance of bread in the Nigerian diet only increased towards the end of the review period as unfavourable economic conditions made other types of food less affordable to consumers. Together with population growth, this further bolstered the performance of margarine and spreads in 2017.
Unilever remained the clear leader in butter and margarine in 2017 with an overall retail value share of 61%. Its Blue Band brand has held a commanding lead in the category for many years, and enjoys strong brand equity. Because Unilever is one of the biggest companies in Nigeria, Blue Band benefits from nationwide distribution and consistently strong advertising and marketing support. These factors ensured that Unilever’s leading position in butter and margarine was never seriously challenged during the review period, despite tough competition from smaller players such as Moi Foods Ltd.
Butter and margarine retail value sales at constant 2017 prices are expected to grow at a CAGR of 2% over the forecast period. While relatively modest, this projected growth rate would be an improvement on the negative constant value CAGR recorded during the review period. Population growth, particularly in urban areas, should help to bolster consumption of bread, which should in turn drive demand for margarine and spreads. Butter and margarine as a whole should also benefit as disposable incomes rise in line with economic recovery in Nigeria.
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Understand the latest market trends and future growth opportunities for the Butter and Margarine industry in Nigeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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