In 2020, the lockdowns, home seclusions, school closures, and other movement restrictions significantly impacted drinking milk product sales. Due to their nutritional value, products in the category are often consumed by consumers commuting to and from work, so restrictions work commutes negatively impacted growth.
Powder milk, the largest category in drinking milk products with more than three quarts of overall value sales, will continue to drive overall good performance as the product is considered quite essential and is available in a range of pack sizes. Powder milk has become the preferred form of milk consumption in Nigeria, having overtaken condensed/evaporated milk over the last 10-20 years.
Following supply issues in 2020, manufacturers will continue to struggle from the COVID-19 impact on global supply chains in 2021. Raw material scarcity due to low supply has impacted availability and pricing, thus average unit prices in the category will continue to rise.
Sales of drinking milk products in Nigeria are expected to grow over the forecast period both in terms of retail volume and value. This is largely due to the expected recovery in the economy, which will provoke a stronger performance from 2022 onwards.
The niche categories of cow’s milk and soy drinks are expected to perform better over the forecast period, particularly as the global supply chain stabilises following COVID-19 disruptions. Cow’s milk has traditionally had low penetration in Nigeria due to challenges in storing liquid milk products but has begun to see greater demand as the electricity supply in the country improves.
Following strong unit price increases in 2020 and 2021 (caused by the impact of COVID-19 on the global supply chain and raw material availability), prices are expected to stabilise over the forecast period and reduce in constant value terms. Increasing local production of dairy through the efforts of companies, such as Promasidor and Fan Milk who have invested in local dairy farms, will also help bring down prices, encouraging further growth in demand.
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Understand the latest market trends and future growth opportunities for the Drinking Milk Products industry in Nigeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This report originates from Passport, our Drinking Milk Products research and analysis database.
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