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Wholesale and Retail of Food in Nigeria
BY Duncan Bekker
Nigeria
03 December 2019
R 10 080.00 (ZAR)  
estimated $ 614.19 (USD) *
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Wholesale and Retail of Food in Nigeria


Expectations of long-term economic and population growth in Nigeria have driven substantial interest from retail investors looking to secure a first-mover advantage in servicing the demand of a potentially huge consumer class. Formal supermarkets are growing from a very low base as the vast majority of food is still traded in the informal market. Lack of infrastructure and import regulations complicate the supply chains of larger players while Nigeria’s poor economic conditions in recent years have affected their performance.


Small Formalised Sector


The sale of food in Nigeria is dominated by the informal sector in open-air markets, and sales through retail chains and supermarkets account for a minor percentage of the overall market. While this has sparked interest from major retailers, the recession in 2016 and low oil prices saw investment interest decline. Nigeria remains a key retail opportunity due to its large consumer base and growing demand for modern outlets.


Manufacture Support


Food manufacturers and wholesalers have fared slightly better than retailers in recent years. The Nigerian government has instituted a number of policies to support local farmers and manufacturers in an attempt to diversify the economy and reduce Nigeria’s reliance on food imports and oil exports. Support includes tax cuts and low-interest loans to local food manufacturers and import restrictions.


Report Coverage


This report focuses on the wholesale and retail of food in Nigeria and includes information on the size and state of the sector and the infrastructure, demand and conditions that support it. This includes the state of online retail and development of shopping malls. There are profiles of 16 companies that include major retailer Shoprite, suppliers such as Nestlé and Unilever and Nigerian players such as food manufacturer United Africa Company of Nigeria (UAC) and independent grocery chain Addide.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
3.1. Industry Value Chain 4
3.2. Geographic Position 6
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 9
5.1. Local 9
5.1.1. Corporate Actions 20
5.1.2. Regulations 22
5.1.3. Enterprise Development and Social Economic Development 26
5.2. Continental 27
5.3. International 32
6. INFLUENCING FACTORS 34
6.1. Economic Environment 34
6.2. Shopping Malls 35
6.3. Poor Infrastructure 37
6.4. Labour 39
6.5. Environmental Concerns 40
6.6. Terrorism and Security 42
6.7. Technology, Research and Development (R&D) and Innovation 42
7. COMPETITION 44
7.1. Barriers to Entry 46
8. SWOT ANALYSIS 46
9. OUTLOOK 48
10. INDUSTRY ASSOCIATIONS 48
11. REFERENCES 49
11.1. Publications 49
11.2. Websites 49
APPENDIX 1 51
Summary of Notable Players 51
COMPANY PROFILES 53
ADDIDE LTD 53
ARTEE INDUSTRIES LTD 56
DRINKS AND FOOD WAREHOUSE INTERNATIONAL LTD 58
EKULO INTERNATIONAL LTD 59
FOODCO NIGERIA LTD 61
LEVENTIS FOODS LTD 64
MASSMART HOLDINGS LTD 66
MULTI-PRO ENTERPRISE LTD 72
NESTLE NIGERIA PLC 74
PAYMENTE LTD 77
PROMASIDOR NIGERIA LTD 79
PZ CUSSONS NIGERIA PLC 81
SHOPRITE HOLDINGS LTD 84
UAC FOODS LTD 89
UNILEVER NIGERIA PLC 91
WIGMORE TRADING LTD 94