Executive Summary

Aug 2019
Prospects
Positive performance expected as demand expands thanks to rising incomes

Steady positive growth is expected across cheese during the forecast period as demand for Western ingredients and cuisine continues to expand, especially among the urban middle class. This trend is being underpinned by improvements in the economic conditions and rising disposable income levels.

Players increasingly tap into demand among less affluent consumers

With demand for cheese among affluent urban dwellers becoming increasingly mature, the forecast period is likely to see the category’s leading brand owners and retailers exploring their options for appealing to less affluent consumers though stronger price promotion and the launch of basic products in simple packaging. The vast majority if the cheese currently available in Cameroonian supermarkets is considered too expensive for economy-minded consumers to purchase on a regular basis.

Demand continues to be hindered by high prices and low average incomes

The forecast period is likely to see sales of cheese remain under pressure due to high unit prices, which make the products in the category unaffordable for many. This means that demand is largely limited to middle-income and high-income consumers.

Competitive Landscape
Groupe Bel benefits from popularity and strong distribution of its leading brands

Groupe Bel remained the leading player in cheese in 2019 and this was primarily due to the very strong position of its leading brand La Vache Qui Rit and its second leading brand Kiri. Groupe Bel’s success and the widespread popularity of its key brands is primarily due the France-based multinational company’s long-standing presence in Cameroon and its consistent use of strong advertising campaigns.

International players dominant due to superior distribution and high entry barriers

International brands almost completely dominate sales of cheese and local players are conspicuous by their absence from the category. Sales are accounted for mainly by international brands with a long-standing presence in the country.

Private label set to become a stronger presence in cheese

Private label is set to improve its position in cheese over the forecast period and this is a sign that demand for cheese is spreading out from its traditional core consumer base of affluent urban-dwellers to include less affluent households. The main private label players in the category are the country’s leading supermarket chains, including Spar, Super U, Casino and Carrefour and these retailers are expanding the range of private label cheese they offer while giving it better shelf positioning to improve visibility.

Prospects
Price drops and strong consumer loyalty to underpin forecast period sales growth

The positive sales growth expected in drinking milk products over the forecast period is set to be due mainly to the efforts of the category’s leading players to reengage in more competitive pricing practices, with the consumer base for cow’s milk in particular likely to expand as a result of greater affordability. In addition, consumer loyalty to the best-known brands is set to remain a major driver of volume and value growth over the forecast period.

Innovation and new product launches set to remain major features of the category

The forecast period is set to see new product development a major trend in drinking milk products. With numerous new entrants having recently expanded the range of products on offer in the category characterised by demand for fairly basic products, numerous new players are offering competitively priced, high-quality products, including Dano Milk, Dolac, Loya and Broli Milk.

Segmentation according to region set to continue during forecast period

One of the most important features of the distribution of drinking milk products in Cameroon is that many of the leading brands in specific parts of the country are distributed exclusively one or two regions. Some of these brands have weak distribution in other parts of the country, limiting the scope of their appeal to one or two regions.

Competitive Landscape
High levels of competition sharpen focus of leading players in powder milk

The fiercely competitive environment that defined drinking milk products throughout the review period showed no signs of abating in 2019. With consumers seeing few differences between the various different products in the dominant category of powder milk for instance, companies are engaged in constant efforts to distinguish their products from those of their competitors.

Operating at regional level presents opportunities to expand to national scope

The leading players in the dominant category of powder milk continue to focus on establishing a strong position at regional level as distribution issues and strong loyalty to brands segmented by region mean that establishing a foothold at national level remains problematic, while it is relatively east to generate strong sales and good performances in specific regions of Cameroon. The two exceptions to this are Nestlé with the Nido brand and OK Foods Cameroon with the Top Milk brand, each of which has been able to establish a strong position across all regions of Cameroon, resulting in these brands topping the rankings at national level.

Africa Food Distribution’s Broli Milk brand debuts in flavoured milk drinks

2019 saw Africa Food Distribution enter the underdeveloped category of flavoured milk drinks, where demand is still very far from maturity and there remains strong potential for further sales growth. Although Broli Milk is a new brand, it is essentially an extension of the company’s Broli umbrella brand, which is present in numerous packaged food categories across staples, snacks and cooking ingredients.

Prospects
Growth expected in a category that has traditionally struggled for appeal

Yoghurt and sour milk products is set to continue registering positive volume and value growth over the forecast period as more consumers come to appreciate the benefits of yoghurt, in particular. With incomes rising and life becoming increasingly hectic for the residents of Douala and Yaoundé, the conditions for sales growth have never been better for a category that has traditionally struggled to generate widespread appeal.

Yoghurt’s healthy image underpinning strong and growing demand

With competition in yoghurt set to become more intense over the forecast period, the category’s leading players are likely to focus more on the development of new products to remain relevant to consumers. In particular, innovation is especially likely to be seen from local players as they continue with their efforts to improve the quality and appeal of their product ranges.

Price competition and advertising to be more important as the category develops

With yoghurt becoming an increasingly competitive category, the leading players can be expected to focus more on establishing crucial advantages for their products and brands in an effort to capture rapidly rising demand. More aggressive marketing activities can thus be expected during the forecast period, mainly price promotions and media advertising campaigns.

Competitive Landscape
Local players remain in leading positions thanks to affordable prices and wide reach

Local companies continue to lead sales of yoghurt and this is a reflection of the requirement for short supply chains due to yoghurt being a highly perishable product. Other reasons for the strong positions of the leading local players are the competitive pricing of their products, as well as their widespread distribution.

Drinking yoghurt poised for higher sales due to new launches

Drinking yoghurt is becoming a more important category as consumers increasingly consider it to be the most convenient type of yoghurt. In response, numerous players are launching new products in the category in an effort to capture rising demand.

Packaging innovation and price promotions used by MyL to boost demand

2019 saw MyL turn to innovation in a bid to boost consumer interest in its yoghurt. Specifically, the company innovated in the area of packaging.

Prospects
Other dairy sales struggling to extend beyond plain condensed milk and cream

Other dairy in Cameroon comprises entirely cream and plain condensed milk and cream, with other categories registering no more than marginal sales. Condensed milk is a very traditional product that has long been favoured for its shelf-stability, long shelf life and low price.

Traditional grocery retailers remains dominant in distribution of other dairy

Unlike most other packaged food categories, the retail distribution of other dairy is still dominated by traditional retail channels and this is a direct reflection of the importance of traditional neighbourhood grocery stores for the low-income consumers who comprise the core consumer base for condensed milk. However, with there being a slim possibility that sales of other dairy will expand to include higher volumes of cream and a range of new products such as coffee whiteners and fromage frais and quark, the forecast period could see supermarkets and other modern retail channels playing a more important role in the retail distribution of other dairy.

Appealing to high-income urban dwellers could offer key to expanding demand

With demand for condensed milk already fairly mature among the low-income consumer base that accounts for the bulk of sales in the category, players in other dairy are increasingly looking to middle- and high-income consumers to expand their products ranges and generate demand for a wider range of products. With the prices charged for cream and various other dairy products far too high for the majority of low-income consumers, and with these products by no means a traditional part of the Cameroonian diet, appealing to a modern, affluent urban consumer base is likely to be key to generating demand in categories in which sales are still marginal.

Competitive Landscape
Nestlé relies on price competition to maintain its leading position

Nestlé remains the leading player in other dairy due to the popularity of its Nestlé brand in condensed milk. This brand is highly popular among Cameroonian consumers due to the company’s long-standing presence in the country.

Competitively priced condensed milk brands also the most successful

Condensed milk is a category in which sales are largely dependent on competitive prices. For this reason, strong brands such as Broli, Loya, Dolac, Incolac, Netto and Jago are engaged in constant efforts to minimise unit prices, resulting in low margins and very little in the way of innovation or added value.

African Food Distribution bets on condensed milk as part of its expansion strategy

2019 saw Africa Food Distribution expand its operations in Cameroon and this includes sharpening its focus on the category of condensed milk. The company is expecting its Broli brand to perform well in condensed milk due to its affordable pricing, strong local positioning and wide distribution, which focuses on traditional grocery retailers and major chained supermarkets in Douala and Yaoundé.

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Dairy in Cameroon

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Cameroon 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 Dairy industry in Cameroon, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Cameroon 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 Dairy in Cameroon?
  • What are the major brands in Cameroon?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

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.

Dairy in Cameroon - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Rising incomes boost sales in butter while margarine benefits from traditional demand
Demographic trends, innovation and price competition to spur sales growth
Supermarkets to extend share as dominant distribution channel

COMPETITIVE LANDSCAPE

Leader Groupe Lactalis benefits from strong distribution and reputation for quality
International players dominate, leaving little room for local rivals
Margarine and spreads defined by basic economy-priced products

CATEGORY DATA

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

Cheese

HEADLINES

PROSPECTS

Positive performance expected as demand expands thanks to rising incomes
Players increasingly tap into demand among less affluent consumers
Demand continues to be hindered by high prices and low average incomes

COMPETITIVE LANDSCAPE

Groupe Bel benefits from popularity and strong distribution of its leading brands
International players dominant due to superior distribution and high entry barriers
Private label set to become a stronger presence in cheese

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 NBO Company Shares of Cheese: % Value 2015-2019
Table 18 LBN Brand Shares of Cheese: % Value 2016-2019
Table 19 Distribution of Cheese by Format: % Value 2014-2019
Table 20 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 21 Forecast Sales of Cheese by Category: Value 2019-2024
Table 22 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Price drops and strong consumer loyalty to underpin forecast period sales growth
Innovation and new product launches set to remain major features of the category
Segmentation according to region set to continue during forecast period

COMPETITIVE LANDSCAPE

High levels of competition sharpen focus of leading players in powder milk
Operating at regional level presents opportunities to expand to national scope
Africa Food Distribution’s Broli Milk brand debuts in flavoured milk drinks

CATEGORY DATA

Table 24 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 25 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 26 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 28 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 29 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 30 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 31 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Other dairy sales struggling to extend beyond plain condensed milk and cream
Traditional grocery retailers remains dominant in distribution of other dairy
Appealing to high-income urban dwellers could offer key to expanding demand

COMPETITIVE LANDSCAPE

Nestlé relies on price competition to maintain its leading position
Competitively priced condensed milk brands also the most successful
African Food Distribution bets on condensed milk as part of its expansion strategy

CATEGORY DATA

Table 35 Sales of Other Dairy by Category: Volume 2014-2019
Table 36 Sales of Other Dairy by Category: Value 2014-2019
Table 37 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 38 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 39 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 40 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 41 Distribution of Other Dairy by Format: % Value 2014-2019
Table 42 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 43 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 44 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Growth expected in a category that has traditionally struggled for appeal
Yoghurt’s healthy image underpinning strong and growing demand
Price competition and advertising to be more important as the category develops

COMPETITIVE LANDSCAPE

Local players remain in leading positions thanks to affordable prices and wide reach
Drinking yoghurt poised for higher sales due to new launches
Packaging innovation and price promotions used by MyL to boost demand

CATEGORY DATA

Table 46 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 47 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 48 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 50 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 51 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 52 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 53 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 54 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 55 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Cameroon - Industry Overview

EXECUTIVE SUMMARY

Population growth and urbanisation drive rising sales despite ongoing headwinds
Sales growth in 2019 tempered by rising price sensitivity
Local players emerge strongly to challenge the leading international names
Traditional channels dominate despite the ongoing spread of supermarkets
Economic and political uncertainty threatens to cast a shadow over packaged food

FOODSERVICE

Sales to Foodservice
Most foodservice players continue to purchase their packaged food supplies from retailers or via cash and carry
Cameroon’s consumer foodservice industry dominated by small-scale domestic players
Specialist suppliers continue to perform well in the supply of packaged food to foodservice players
Category Data
Table 57 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 58 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 59 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 60 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 61 Sales of Packaged Food by Category: Volume 2014-2019
Table 62 Sales of Packaged Food by Category: Value 2014-2019
Table 63 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 64 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 65 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 66 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 67 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 68 Penetration of Private Label by Category: % Value 2014-2019
Table 69 Distribution of Packaged Food by Format: % Value 2014-2019
Table 70 Distribution of Packaged Food by Format and Category: % Value 2019
Table 71 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 72 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 73 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 74 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources