Spreads - Nigeria | Statista Market Forecast

The Spreads Market in The Food market of Nigeria is facing subdued growth due to factors such as limited consumer awareness and availability of substitute products. However, the market is expected to grow in the coming years with the increasing adoption of digital technologies and rising health consciousness among consumers, especially in the sub-markets of Jams & Marmalades, Chocolate Spreads, and Peanut Butter. Online health services are also providing convenient access to these products, further driving market growth.

Customer preferences: There has been a noticeable increase in demand for healthier and more natural spreads and sweeteners in the Nigerian market. This trend is being driven by a growing awareness of the negative health effects of processed and artificial ingredients. As a result, consumers are gravitating towards products with clean and simple ingredient lists, as well as those that cater to specific dietary needs such as gluten-free or vegan. This shift towards healthier options is also being influenced by the rise of health-conscious millennials and the growing popularity of clean eating in Nigeria.

Trends in the market: In Nigeria, the Spreads & Sweeteners Market within The Food market is experiencing a surge in demand for healthier alternatives. Consumers are increasingly health-conscious and seeking out spreads and sweeteners made with natural ingredients and low in sugar. This trend is expected to continue, with a projected growth of 6.5% in the next five years. Industry stakeholders can capitalize on this trend by offering innovative and healthier products, as well as investing in digital marketing to reach a wider audience. Additionally, there is a growing trend of online grocery shopping, which presents new opportunities for market players to expand their reach and increase sales.

Local special circumstances: In Nigeria, the Spreads & Sweeteners Market within The Food market is heavily influenced by the country's tropical climate and local taste preferences. The demand for natural and organic spreads and sweeteners is on the rise, driven by the health-conscious population. Additionally, the country's regulatory environment, including import restrictions and packaging requirements, presents challenges for foreign companies looking to enter the market. This creates opportunities for local producers to thrive and cater to the unique needs and preferences of Nigerian consumers.

Underlying macroeconomic factors: The Spreads Market of the Spreads & Sweeteners Market within The Food market in Nigeria is heavily influenced by macroeconomic factors such as government policies, consumer purchasing power, and economic stability. With a growing population and a rising middle class, the demand for affordable and convenient food products is increasing. To meet this demand, manufacturers are investing in research and development to improve product quality and reduce production costs. Moreover, the government's efforts to improve food security and reduce import dependency are driving the growth of The Food market in Nigeria. However, challenges such as inflation, currency devaluation, and infrastructure constraints are hindering market growth.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.