Tanzania’s economy continues to bounce back from the effects of COVID-19, with the government investing in local dairy production and raising taxes on imports. The country’s large, affluent middle class underpins demand for more expensive value-added dairy products and alternatives.
During 2022, the dairy products and alternatives industry continued to grow. A new milk processing factory was established in the Morogoro region in the Mvomero district.
The number of meals consumed per day tends to vary according to income level. While middle-income and high-income consumers will invariably have two or three meals per day, one meal per day is more common among low-income communities.
Due to population growth and improvement in the country’s infrastructure, more new towns are opening up. This is providing opportunities for modern grocery retailers and is widening accessibility of dairy products and alternatives across towns and cities.
The majority of people rely on open markets and, to some extent, small local grocers for their packaged dairy products and alternatives. Sales through supermarkets are limited almost exclusively to affluent people living in upmarket areas of major cities, such as Dar Es Salam and Mwanza.
Dairy products and alternatives is expected to see steady growth in retail volume terms over the forecast period. Growth is set to be spurred by population growth, urbanisation and ongoing economic development, as well as growing awareness of the health benefits of consuming these products, especially among children.
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Dairy Products and Alternatives
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