Yoghurt and Sour Milk Products in Nigeria

PROSPECTS

Strong growth expected over the forecast period

Yoghurt and sour milk drinks is expected to perform well over the forecast period as it recovers from the negative impact of a slow economy in 2015-2017. The category also has much scope to expand from popular unbranded, cottage products to branded products.

Drinking yoghurt drives overall performance

Drinking yoghurt drives the overall category, and is expected to continue to grow well over the forecast period. This is the kind of product traditionally favoured in Nigeria through local products such as “Kunnu”, and in being branded and sold in both traditional and modern retail outlets, it is experiencing fast growth.

Flavoured yoghurt expected to be fastest growing

Spoonable yoghurt (consisting of flavoured yoghurt and plain yoghurt) is also benefiting from desire for novel tastes and westernisation, with modern retail channels of supermarkets and hypermarkets helping to make products more visible. The harsh depreciation of the local currency in 2016/2017 had made the category suffer a steep decline due to high import costs, but it is expected to recover over the forecast period as disposable incomes increase with a recovery of the economy and as the exchange rate stabilises.

COMPETITIVE LANDSCAPE

CHI Ltd leads

CHI Ltd led yoghurt and sour milk products in 2018. The company operates an effective distribution network nationwide, through which it leads many food and drink products such as fruit juice, and so has ensured strong popularity for its Hollandia brand.

Blue Boat Fresh Yo makes a return

Ranona Ltd, through its Blue Boat Fresh Yo brand, was the overall best performer in yoghurt and sour milk products in 2018 in terms of value share gain. This was due primarily to a recovery in production in its factory which had burned down in 2016 leading it to being largely absent from retail in 2017.

Greater competition expected as Dolait Yoghurt enters Nigeria

Over the forecast period, it is expected that competition will increase as more companies try to tap into the strong and growing demand for yoghurt in Nigeria. One such brand, Dolait Yoghurt, entered the category in February 2018 and aims to gain strong share over the next few years.

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