Executive Summary

Aug 2019
Prospects
Chocolate confectionery returns to growth thanks to Nigeria’s recovering economy

In 2019, chocolate confectionery in Nigeria witnessed a return to strong growth in both retail volume and current value terms following a sharp decline in sales both the previous year and in 2016, with 2017 proving more successful. This rebound can be largely attributed to the country’s recovering economy.

Wider variety of products and brands set to support category growth over the forecast period

Chocolate confectionery in 2019 benefited from the presence of an increasing range of products and brands. Strong unit price growth in previous years led to new players entering the category and offering relatively lower-priced products, particularly from markets such as Turkey and the Middle East, in turn increasing affordability and enabling more consumers to enter the category.

Countlines remains the biggest category thanks to its more affordable prices

Although not the best performer in percentage terms in 2019, countlines continued to record the strongest gains in actual terms thanks to being the largest and most popular category overall, with this set to continue over the forecast period. This position can be attributed to the fact that countlines are significantly cheaper than products in other categories and therefore enjoy stronger demand among new entrants.

Competitive Landscape
Multinationals remain the clear leaders in chocolate confectionery thanks to their strong brand portfolios

Mars continued to lead chocolate confectionery in 2019, further strengthening its position as its retail value share rose steadily over the review period. Other multinationals such as Nestlé, Cadbury, Lindt & Sprüngli and Mondelez International remained some way behind.

Roxy Nougat and Chocomilo the best performing brands in 2019

Roxy Nougat from the Turkish company Simsek Biscuit & Food was the best performing brand in chocolate confectionery in 2019, followed by Nestlé’s Chocomilo. Only launched in 2017, Roxy Nougat has quickly grown in popularity thanks to its affordability, being cheaper than most other Western brands.

Heavier advertising anticipated over the forecast period

The country’s recovering economy over the forecast period is expected to lead to an increase in advertising for products such as chocolate confectionery. Up until 2018, chocolate confectionery was rarely advertised in the country, with this being largely down to products not being directly imported by brand manufacturers but rather by third-party importers.

Prospects
2019 sees gum rebound from heavy declines due to the struggling Nigerian economy

Gum returned to strong positive growth in 2019 in both retail volume and current value terms following heavy declines over the previous three years as a result of the struggling economy in Nigeria. With the economy now in recovery and disposable incomes starting to rise, consumers returned to the category, enabling value sales to rise above pre-recession levels.

Chewing gum continues to outperform bubble gum

Chewing gum remained by far the biggest category in gum in 2019 in both retail volume and current value terms, while also continuing to outperform bubble gum. This can be largely attributed to many young adult consumers looking to freshen their breath and improve their dental hygiene, as well as the category’s much wider range of brands, products, flavours and different packaging formats, for example HDPE bottles, when compared to bubble gum.

Bubble gum fails to return to positive volume growth in 2019

While chewing gum performed well in both retail volume and current value terms in 2019, bubble gum only achieved positive results in value terms, registering a further decline in volume sales, albeit not as heavy as in previous years. Value growth can mainly be attributed to a rise in average unit price, while volume sales were adversely impacted by the category’s key target audience, children, increasingly opting for other kinds of sweet snacks, for example lollipops and chocolate confectionery, with there being an ever growing range of brands and products from which to choose.

Competitive Landscape
Perfetti Van Melle maintains its leading position thanks to a wide range of flavours and offering incentives to wholesalers and distributors

Having overtaken the category’s traditional leader, William Wrigley Jr Co (Wrigley), in 2016, Perfetti Van Melle maintained its leading position in 2019. Indeed, the company continued to grow its retail value share by a further three percentage points, with this contributing to a huge share gain of 34 percentage points since the start of the review period.

Wrigley continues to lose share due to its higher prices

Despite losing its leading position in 2016, Wrigley has sought to remain competitive through offering a range of high quality brands, which are widely available in retail outlets. However, strong competition from Perfetti Van Melle has continued to challenge the company, especially as its brands are generally higher in price and so suffered during the country’s economic struggles in 2016 and 2017.

Riclan once again the best performing manufacturer in gum in 2019

Third-ranked Riclan remained the best performing gum manufacturer in Nigeria in 2019, posting a strong double-digit increase in retail value sales, albeit from a low base. The company offers the Freegells brand, which is affordably priced and benefits from strong distribution, while also being seen as a good quality product.

Prospects
Sugar confectionery records strong growth in 2019 as the Nigerian economy recovers and population further increases

Following heavy declines in 2018, sugar confectionery posted strong growth in both retail volume and current value terms in 2019. This can be primarily attributed to the country’s economy recovering from a turbulent period over 2016-2018, which saw prices rise as a result of depreciation of the local currency.

Category benefits from increased competition and a greater focus on marketing and promotional activities

As sugar confectionery has become more competitive, manufacturers have stepped up their marketing and promotional activities. They have rebranded their products in more attractive packaging, run aggressive advertising campaigns and offered discounted prices to attract more customers.

Pastilles, gums, jellies and chews set to benefit from the novelty value of new products over the forecast period

All sugar confectionery categories in Nigeria are expected to perform well over the forecast period as the economy is predicted to continue to grow, along with the country’s population, which has been estimated at increasing by more than 3% a year. The best performing category is forecast to be pastilles, gums, jellies and chews.

Competitive Landscape
Sweetco Foods continues to dominate sugar confectionery thanks to a wide range of brands

Sugar confectionery in Nigeria continued to be dominated in 2019 by Sweetco Foods. This position can be attributed particularly to the company’s strength in categories such as boiled sweets and lollipops, in which it offers a wide range of brands and products.

Pace of new product development expected to pick up over the forecast period

Compared with recent years, new product development in the category over 2018/2019 was relatively weak, mainly due to the difficult economic environment, with manufacturers instead focusing on improving the distribution of their brands. The forecast period is expected to see more activity in terms of innovation as companies focus on offering smaller pack sizes in order to make products more affordable to consumers as well as new flavour variants and new products in smaller categories such as pastilles, gums, jellies and chews and mints.

Sugar confectionery likely to benefit from the further expansion of modern retailing

Manufacturers of sugar confectionery, both local and international, are expected to also focus on widening their distribution over the forecast period, particularly to take advantage of the rapid growth of modern retailing channels, in which consumers are more likely to purchase larger pack sizes at cheaper unit prices compared to traditional grocery channels such as kiosks where they tend to purchase single units. Modern grocery retailers will also help to boost visibility and demand for the more sophisticated products preferred by adult consumers, such as toffees, caramels, nougat and mints.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Confectionery industry in Nigeria with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Confectionery industry in Nigeria, our research will save you time and money while empowering you to make informed, profitable decisions.

The Confectionery in Nigeria market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Confectionery in Nigeria?
  • What are the major brands in Nigeria?
  • With economic recovery far from guaranteed, are consumers cutting back on impulse and indulgence food items like confectionery?
  • How are manufacturers addressing consumer concerns over health and obesity?
  • What does the future hold for ethically sourced products?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Confectionery in Nigeria - Category analysis

Chocolate Confectionery

HEADLINES

PROSPECTS

Chocolate confectionery returns to growth thanks to Nigeria’s recovering economy
Wider variety of products and brands set to support category growth over the forecast period
Countlines remains the biggest category thanks to its more affordable prices

COMPETITIVE LANDSCAPE

Multinationals remain the clear leaders in chocolate confectionery thanks to their strong brand portfolios
Roxy Nougat and Chocomilo the best performing brands in 2019
Heavier advertising anticipated over the forecast period

CATEGORY DATA

Table 1 Sales of Chocolate Confectionery by Category: Volume 2014-2019
Table 2 Sales of Chocolate Confectionery by Category: Value 2014-2019
Table 3 Sales of Chocolate Confectionery by Category: % Volume Growth 2014-2019
Table 4 Sales of Chocolate Confectionery by Category: % Value Growth 2014-2019
Table 5 Sales of Chocolate Tablets by Type: % Value 2014-2019
Table 6 NBO Company Shares of Chocolate Confectionery: % Value 2015-2019
Table 7 LBN Brand Shares of Chocolate Confectionery: % Value 2016-2019
Table 8 Distribution of Chocolate Confectionery by Format: % Value 2014-2019
Table 9 Forecast Sales of Chocolate Confectionery by Category: Volume 2019-2024
Table 10 Forecast Sales of Chocolate Confectionery by Category: Value 2019-2024
Table 11 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth 2019-2024
Table 12 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2019-2024

Gum

HEADLINES

PROSPECTS

2019 sees gum rebound from heavy declines due to the struggling Nigerian economy
Chewing gum continues to outperform bubble gum
Bubble gum fails to return to positive volume growth in 2019

COMPETITIVE LANDSCAPE

Perfetti Van Melle maintains its leading position thanks to a wide range of flavours and offering incentives to wholesalers and distributors
Wrigley continues to lose share due to its higher prices
Riclan once again the best performing manufacturer in gum in 2019

CATEGORY DATA

Table 13 Sales of Gum by Category: Volume 2014-2019
Table 14 Sales of Gum by Category: Value 2014-2019
Table 15 Sales of Gum by Category: % Volume Growth 2014-2019
Table 16 Sales of Gum by Category: % Value Growth 2014-2019
Table 17 NBO Company Shares of Gum: % Value 2015-2019
Table 18 LBN Brand Shares of Gum: % Value 2016-2019
Table 19 Distribution of Gum by Format: % Value 2014-2019
Table 20 Forecast Sales of Gum by Category: Volume 2019-2024
Table 21 Forecast Sales of Gum by Category: Value 2019-2024
Table 22 Forecast Sales of Gum by Category: % Volume Growth 2019-2024
Table 23 Forecast Sales of Gum by Category: % Value Growth 2019-2024

Sugar Confectionery

HEADLINES

PROSPECTS

Sugar confectionery records strong growth in 2019 as the Nigerian economy recovers and population further increases
Category benefits from increased competition and a greater focus on marketing and promotional activities
Pastilles, gums, jellies and chews set to benefit from the novelty value of new products over the forecast period

COMPETITIVE LANDSCAPE

Sweetco Foods continues to dominate sugar confectionery thanks to a wide range of brands
Pace of new product development expected to pick up over the forecast period
Sugar confectionery likely to benefit from the further expansion of modern retailing

CATEGORY DATA

Table 24 Sales of Sugar Confectionery by Category: Volume 2014-2019
Table 25 Sales of Sugar Confectionery by Category: Value 2014-2019
Table 26 Sales of Sugar Confectionery by Category: % Volume Growth 2014-2019
Table 27 Sales of Sugar Confectionery by Category: % Value Growth 2014-2019
Table 28 Sales of Pastilles, Gums, Jellies and Chews by Type: % Value 2014-2019
Table 29 NBO Company Shares of Sugar Confectionery: % Value 2015-2019
Table 30 LBN Brand Shares of Sugar Confectionery: % Value 2016-2019
Table 31 Distribution of Sugar Confectionery by Format: % Value 2014-2019
Table 32 Forecast Sales of Sugar Confectionery by Category: Volume 2019-2024
Table 33 Forecast Sales of Sugar Confectionery by Category: Value 2019-2024
Table 34 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2019-2024

Packaged Food in Nigeria - Industry Overview

EXECUTIVE SUMMARY

Packaged food rebounds thanks to population growth and shift to packaged options
Weak economic conditions continue to constrain growth in 2019
Higher import prices open up space for local companies
Modern grocery retailers benefit from expansion and offering comfortable shopping experience
Increasingly sophisticated consumers set to focus on quality

FOODSERVICE

Sales to Foodservice
Urbanisation helps to drive demand for foodservice
Basic staples and cooking ingredients benefit from foodservice operators shifting to branded options
Emergence of consumer foodservice chains boosts demand for organised suppliers

CATEGORY DATA

Table 36 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 37 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 38 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 39 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 40 Sales of Packaged Food by Category: Volume 2014-2019
Table 41 Sales of Packaged Food by Category: Value 2014-2019
Table 42 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 43 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 44 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 45 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 46 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 47 Distribution of Packaged Food by Format: % Value 2014-2019
Table 48 Distribution of Packaged Food by Format and Category: % Value 2019
Table 49 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 50 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 51 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 52 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources