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    • Wholesale Retail Food Nigeria

    The Wholesale and Retail of Food in Nigeria 2023

    Charles Chinya | Nigeria | 22 November 2023

    The Wholesale and Retail of Food in Nigeria 2019

    Duncan Bekker | Nigeria | 03 December 2019

    The Wholesale and Retail of Food in Nigeria 2015

    Ingi Salgado | Nigeria | 19 February 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the wholesale and retail of food in Nigeria includes information on the state of the\r\nindustry, both formal and informal, mall development, ecommerce, key trends and issues,\r\ninfluencing factors and notable players. There are profiles of 21 companies including multinationals\r\noperating in Nigeria such as Nestlé, Unilever and Cadbury, local supermarket chains such as Addide\r\nand FoodCo, and major distributors such as Wigmore Trading.

    Introduction

    • The food wholesale and retail sectors in Nigeria are highly fragmented and dominated by the informal sector and small enterprises, which account for 95% of transactions.
    • Formal retailing includes international brands and accounts for a small portion of revenue.
    • The number of locally-owned retailers has increased, and investors have shown an appetite to invest in them.
    • Nigeria’s large population, rising middle class and tech-savvy youth offer opportunities for investment and expansion in the sector.
    • Operators face a myriad of challenges including poor infrastructure, a shortage of serviced land for retail development, unreliable electricity supply, high inflation, a shortage of foreign currency, a volatile local currency and complex import processes.

    Trends

    • Consumer buying patterns have shifting slightly towards more food items as a percentage of household expenditure.
    • Formal retailers are positioning themselves as preferred destinations.
    • Growing ecommerce sector.
    • Local retailers are focusing on city outskirts and suburbs.
    • Mall development is likely to be focused on small suburban malls.

    Opportunities

    • Convenience shopping services attracting consumers to formal shops.
    • Data aggregation.
    • Ecommerce and fintech, with fast-growing young population and increased internet penetration rate.
    • Economic recovery, high disposable incomes of middle class driving sales.
    • Economic reforms being implemented by government.
    • High population and rising middle-class.
    • Untapped markets in rural areas.

    Challenges

    • Complex import procedures.
    • High inflation.
    • High levels of corruption at ports and state institutions.
    • High levels of informality complicate supply chains.
    • Lack of a formal credit system particularly for small and medium retailers.
    • Many stores are situated in congested areas with poor accessibility.
    • Multiple tax regime.
    • Poor road and rail infrastructure.
    • Security concerns.
    • Shortages of foreign currency.
    • Threats of cyber-security.
    • Unavailability of serviced land for retail development.
    • Unstable power supply and poor water resources.

    Outlook

    • Nigeria faces high inflation, unemployment, and unequitable distribution of income.
    • Locally-owned medium and small retailers continue to expand in small towns and semi-rural areas.
    • Retailers, food manufacturers, and real estate investors remain committed to the Nigerian market, highlighting the long-term opportunity of a huge consumer base.
    • Despite high profile exists of formal retail operators from Nigeria, there are opportunities including relatively small, localised retail developments geared towards essentials, and ecommerce platforms.

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    The Wholesale and Retail of Food in Nigeria
    The Wholesale and Retail of Food in Nigeria 2023

    Full Report

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    Industry Landscape

    R 6 650.00(ZAR) estimated $ 356.67 (USD)*

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    Historical Reports

    The Wholesale and Retail of Food in Nigeria 2019-12-03

    R 1 900.00(ZAR) estimated $101.90 (USD)*

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    The Wholesale and Retail of Food in Nigeria 2015-02-19

    R 1 900.00(ZAR) estimated $101.90 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. COUNTRY INFORMATION 1
    3. DESCRIPTION OF THE INDUSTRY 3
    3.1. Industry Value Chain 4
    3.2. Geographic Position 6
    3.3. Size of the Industry 6
    4. LOCAL 8
    4.1. State of the Industry 8
    4.2. Key Trends 13
    4.3. Key Issues 14
    4.4. Notable Players 15
    4.5. Trade 17
    4.6. Corporate Actions 18
    4.7. Regulations 18
    4.8. Enterprise Development and Social Development 19
    5. AFRICA 20
    6. INTERNATIONAL 22
    7. INFLUENCING FACTORS 24
    7.1. Unforeseen Events 24
    7.2. Economic Environment 25
    7.3. Labour 26
    7.4. Poor Infrastructure 27
    7.5. Shopping Malls 27
    7.6. Environmental Issues 28
    7.7. Security 29
    7.8. Technology, R&D, Innovation 29
    7.9. Government Support 30
    7.10. Input Costs 30
    8. COMPETITIVE ENVIRONMENT 31
    8.1. Competition 31
    8.2. Ownership Structure of the Industry 31
    8.3. Barriers to Entry 31
    9. INDUSTRY SUMMARY 32
    10. OUTLOOK 33
    11. INDUSTRY ASSOCIATIONS 33
    12. REFERENCES 34
    12.1. Publications 34
    12.2. Websites 34
    Appendix 1 36
    Summary of Notable Players 36
    COMPANY PROFILES 38
    Ace Supermarket Nigeria Ltd 38
    Addide Ltd 40
    Artee Industries Ltd 43
    BN Foods Ltd 45
    BUA Foods PLC 46
    Cadbury Nigeria PLC 49
    EDLP Nigeria Ltd 51
    Ekulo International Ltd 53
    Everyday Group of Company Ltd 55
    FoodCo Nigeria Ltd 57
    Multipro Consumer Products Ltd 60
    NASCON Allied Industries PLC 62
    Nestle Nigeria PLC 64
    PayMente Ltd 67
    Prince Ebeano Ltd 68
    Promasidor Nigeria Ltd 70
    PZ Cussons Nigeria PLC 72
    Sundry Markets Ltd 74
    UAC Foods Ltd 77
    Unilever Nigeria PLC 79
    Wigmore Trading Ltd 82

    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.

    Introduction

    This report focuses on the wholesale and retail of food in Nigeria. Nigeria is Africa’s largest economy and its most populous country and has a retail sector worth over US$100bn. Expectations of long-term economic and population growth 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. Nigeria has a significant infrastructure deficit and maintains a number of import regulations that complicate the supply chains of larger players. Since recovering from a recession in 2016, relatively slow economic growth has continued to put pressure on consumer spending.

    Strengths

    • A number of multinational market leaders are already present, with many more operating in the region.
    • Food retail has upstream and downstream linkages to a number of sectors supported by government.
    • Formal market concentration is very low, attracting investment from retailers and real estate players who wish to secure an early advantage.
    • Nigeria is considered an investment hub for companies looking to expand into West Africa.
    • Very large population and growing middle-class present food retailers with an attractive consumer base.
    • While agro-processing is underdeveloped, Nigerian agriculture has the potential to supply a wide variety of food products.

    Weaknesses

    • High levels of informality complicate supply chains, requiring players to partner with local companies or develop entirely new networks.
    • Nigeria is a net food importer and foreign retailers are reliant on imports to carry their full product range.
    • Oil-dependent economy vulnerable to commodity price shocks.
    • Poor trade and energy infrastructure significantly complicate supply and distribution, and can increase costs.
    • Security concerns, including high levels of crime and terrorism.
    • Shortage of skills.
    • Strict import and foreign exchange regulations.
    • Weak and corrupt institutions.

    Opportunities

    • Convenience and value-added services attracting consumers to formal supermarkets.
    • Government support and increasing investment in agriculture and food manufacturing.
    • Growing device and internet penetration and an increasingly youthful population driving the uptake of e-commerce.
    • Increasingly dynamic middle-class driving demand in the formal channel.
    • Ongoing investment in infrastructure.
    • Ongoing investment in shopping malls.
    • Potential for trade liberalisation and greater market access through continental free trade agreements.
    • Technology enabling innovations in retail supply chains and consumer demand analysis.

    Threats

    • Consumer spending may be slow to shift to formal sector as Nigerians continue to primarily use informal markets.
    • Continuing slow economic growth, rising unemployment, and double-digit inflation may keep consumer spending under pressure.
    • Government expenditure assumes relatively stable international oil prices.
    • Increase in security threats.
    • Minimum wage and value added tax hikes may increase supermarket costs.
    • Threats of more stringent foreign exchange and import controls undermining retailer confidence.

    Outlook

    The food retail industry is still feeling the effects of Nigeria’s recession, even as the wider economy slowly recovers. Despite GDP growth, consumer spending has remained under pressure due to rising unemployment, high inflation, and little real income growth. Shoprite has reined in its capital expenditure and expansion plans, citing the slow economy and supply challenges attributed to poor infrastructure and stringent foreign exchange and import regulation. While Spar and many local grocery chains are still expanding, the growth of retail outlets has slowed compared to the pre-recession period, and consumers have been relatively slow to shift their spending towards formal channels. The development of retail real estate is ongoing, but has also slowed, and the majority of new malls are below 10,000m2, targeting local businesses as tenants and servicing only basic consumer demand. While the online retail market continues to grow, confidence in the short-term viability of e-commerce has been shaken by widening losses and a number of divestitures.Nevertheless, supermarkets, food manufacturers, and real estate investors remain committed to the Nigerian market, highlighting the fundamental long-term opportunity of such a huge and potentially dynamic consumer class. Broll Nigeria states that 2019 has brought increased interest from a number of foreign companies looking to enter the market through partnerships with local players. South Africa’s Pick n Pay is set to enter Nigeria in the next year and existing retailers have invested in efficient distribution models and innovative marketing and value-added service offerings. Analysts and stakeholders suggest that, while the environment is likely to remain challenging in the short-term, Nigeria’s food retailers are well-positioned to take advantage of an economic upturn and long-term trends.

    Read More..
    The Wholesale and Retail of Food in Nigeria
    The Wholesale and Retail of Food in Nigeria 2019

    Full Report

    R 1 900.00(ZAR) estimated $101.90 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 71.33 (USD)*

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    Historical Reports

    The Wholesale and Retail of Food in Nigeria 2023-11-22

    R 9 500.00(ZAR) estimated $509.52 (USD)*

    View Report Add to Cart

    The Wholesale and Retail of Food in Nigeria 2015-02-19

    R 1 900.00(ZAR) estimated $101.90 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

    Introduction

    Nigeria’s US$99bn-a-year food retail sector is modernising rapidly. Shoppers with disposable income are swapping open-air markets for malls, convenience stores, supermarkets and online shopping. Despite vast infrastructural and distribution challenges for retailers, the formal food market is expected to continue encroaching heavily on the market share of the informal sector over the next few years. Foreign investors are attracted by Nigeria’s sizeable and growing middle class, which is the largest in Africa. In 2000, there were no supermarkets in the country; currently there are more than 30, and there is potential for further rapid penetration. Nigeria’s market leader in food retail is South Africa-based Shoprite, which obtained first-mover advantage when it opened its first store in Abuja in 2005 and envisions between 600 and 800 stores in the future.

    Strengths

    • Increasing foreign investment in food retail.
    • The sector serves a population of 169.3 million people.

    Weaknesses

    • Corruption.
    • Efficiencies are hampered by poor infrastructure.
    • Lack of access to finance.
    • Lack of varied food products due to import bans and high tariffs.
    • Slow pace of securing and developing land for retail developments.
    • Supply chain delays.

    Opportunities

    • Growing demand for convenience-type food which is typically stocked by supermarkets.
    • Mobile technology innovation for online shopping.
    • Nigeria has Africa’s largest middle class, which is still growing.

    Threats

    • Boko Haram insurgency.
    • Fallout from lower oil prices may curb spending power and negatively affect economic growth.
    • Political instability.

    Outlook

    The Nigerian food retail sector is expected to continue growing strongly. However, there are some immediate and medium-term risks, chiefly related to infrastructural challenges. In addition, on the political front, Nigeria’s presidential and legislative elections were postponed from February to 28 March and 11 April 2015 mainly because of the presence of Islamist extremist group Boko Haram in the north-east area. However, these political and security risks have not deterred investors in the rest of the country. In the words of Zambeef co-founder Francis Grogan, “Nigeria is a hard market to tap into, don’t let anyone tell you otherwise. That place is hard work… but it’s a market too large to ignore.”

    The Wholesale and Retail of Food in Nigeria
    The Wholesale and Retail of Food in Nigeria 2015

    Full Report

    R 1 900.00(ZAR) estimated $101.90 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 71.33 (USD)*

    Buy Now +

    Historical Reports

    The Wholesale and Retail of Food in Nigeria 2023-11-22

    R 9 500.00(ZAR) estimated $509.52 (USD)*

    View Report Add to Cart

    The Wholesale and Retail of Food in Nigeria 2019-12-03

    R 1 900.00(ZAR) estimated $101.90 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 13
    4.2. Continental 15
    4.3. International 16
    5. INFLUENCING FACTORS 18
    5.1. Economic Environment 18
    5.2. Lack of Infrastructure 19
    5.3. Labour Resources 20
    5.4. Information Technology 20
    5.5. Environmental Concerns 21
    6. COMPETITION 22
    6.1. Barriers to Entry 23
    6.2. Research and Development (R&D) 24
    6.3. Innovation 24
    7. SWOT ANALYSIS 25
    8. OUTLOOK 25
    9. INDUSTRY ASSOCIATIONS 26
    10. REFERENCES 27
    10.1. Publications 27
    10.2. Websites 27
    WHOLESALERS OF FOOD 29
    Food Warehouse International Ltd 29
    Leventis Foods Ltd 31
    Massmart Holdings Ltd 33
    Nestle Nigeria Plc 38
    Promasidor Nigeria Ltd 40
    PZ Cussons Nigeria Plc 41
    UAC Foods Ltd 44
    Unilever Nigeria Plc 46
    Wigmore Trading Ltd 49
    RETAILERS OF FOOD 50
    Addide Supermarket Nigeria Ltd 50
    Artee Industries Ltd 52
    Food Warehouse International Ltd 54
    Foodco Nigeria Ltd 56
    Massmart Holdings Ltd 58
    Multi-Pro Enterprise Ltd 63
    Shoprite Holdings Ltd 65

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