Yoghurt and Sour Milk Products in Nigeria

PROSPECTS

Yoghurt benefiting from being seen as a convenient, filling and nutritious snack

Yoghurt continued to perform well in 2019 as it further recovered from the negative impact of a slow economy over 2015-2017. The category is benefiting from the country’s growing population, its novelty value and increasingly being seen as a convenient, nutritious and filling snack.

Drinking yoghurt benefits from being seen as a good source of on-the-go nutrition

In 2019, drinking yoghurt continued to overwhelmingly dominate yoghurt and sour milk products, accounting for nearly 100% of the category’s overall value sales. It also remained the best performing category, with sales supported by the country’s growing urban and young populations.

Further premiumisation expected over the forecast period

Yoghurt is predicted to see a greater manufacturer focus on premiumisation over the forecast period as the economic climate in the country continues to improve. While some premium drinking yoghurt brands, such as Farm Pride and Farm Fresh, enjoyed strong sales over the review period, even during times of economic turbulence due to their much higher quality when compared with more popular mass brands, thus appealing to middle- and upper-income householders, they have the potential to record even stronger growth over the forecast period as the economy picks up and disposable incomes rise.

COMPETITIVE LANDSCAPE

CHI maintains its lead in a very competitive category but continues to lose share to brands with a stronger on-the-go positioning

CHI remained the leading player in yoghurt and sour milk products in 2019, accounting for around a quarter of the category’s overall value sales thanks to its popular Hollandia brand. The company’s position can be largely attributed to a strong distribution network nationwide, through which it leads many food and drink categories.

Ranona records the strongest gain in share as its Blue Boat brand returns to the marketplace

Ranona, which offers the Blue Boat brand, registered the strongest increase in value share in both 2018 and 2019. This was due primarily to a return to production following a fire at its factory in 2016, which led to the brand being largely absent from the retail channel in 2017.

Competition in yoghurt intensifies following the entry of new players

The level of competition in yoghurt has intensified in recent years as a result of the emergence of new players looking to tap into the category’s growth potential. February 2018 saw the entry of Dolait Yoghurt from Sotibe Nigeria, with the brand performing well and quickly gaining share, benefiting from its attractive packaging and popularity in neighbouring West African countries such as Cameroon.

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