Slide of the month (SOTM) December. The food, beverage and tobacco manufacturing industry in Nigeria

Prior to the Covid outbreak, manufacturing in Nigeria had been recovering from the 2016 recession, even though the sector still faces various challenges, such as intermittent power supply, infrastructural deficits, forex shortage and Naira devaluation. africon did a market analysis for a European food ingredient manufacturing company interested in understanding the industry in Nigeria. The project aim was to understand potentials in various market segments and to ultimately determine scale and scope of opportunities for our client. Within our research, we found that the food, beverage and tobacco sectors account for 38% of all manufacturing output in Nigeria. We were furthermore able to share the size of the market and identify key players and partners to provide direction for future sales efforts in the region.

If you have any questions or concerns, you can contact us at info@africon.de

Read other SOTMs (Slides of the month) here.

Slide of the month (SOTM) November. The construction industry in Africa

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

Slide of the month (SOTM) September. The soft drinks market in Kenya

Slide of the month (SOTM) August. Steel demand in Africa

Slide of the month (SOTM) July. The future of Africa’s independent automotive aftermarkets

 

 

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

A specific question that emerged in one of our recent projects in the food industry was how the meat sector in Nigeria looks like and whether it was a suitable target industry for our client. africon answered this question through a combination of industry knowledge from our experts on the ground, local research, as well as a comprehensive analysis of trade statistics. Our findings revealed that in Nigeria, most people consume red meat on the day they purchase it from open air market stalls, and only a small fraction is refrigerated. Fish in Nigeria is primarily traded live, fresh, frozen or smoked. However, 90% of the broiler chicken is slaughtered, processed and sold frozen. These findings, among others, helped us to rate various target markets for our client in comparison to each other. It laid the groundwork for africon to identify potential customers and partners for our client, therefore reducing cost, time and risk for them.

If you have any questions or concerns, you can contact us at info@africon.de

Read other SOTMs (Slides of the month) here.

Slide of the month (SOTM) September. The soft drinks market in Kenya

Slide of the month (SOTM) August. Steel demand in Africa

Slide of the month (SOTM) July. The future of Africa’s independent automotive aftermarkets

Slide of the month (SOTM) June. Consumer goods across Africa

Slide of the month (SOTM) May. Glass production in Africa

 

Slide of the month (SOTM) September. The soft drinks market in Kenya

The soft drinks market in Kenya comprises of carbonates, water and juices. africon did an analysis for a chemicals manufacturer to understand the industry in depth. One of the key learnings from this project was that Coca Cola dominates this market. Consumers are knowledgeable about the market and there exists a strong brand loyalty. Based on the findings, africon was able to provide an overview on soft drinks manufacturing as an application industry for our client and give strategic recommendations.

If you have any questions or concerns on the soft drinks market in Kenya, you can contact us at info@africon.de

Read other SOTMs (Slides of the month) here.

Slide of the month (SOTM) August. Steel demand in Africa

Slide of the month (SOTM) July. The future of Africa’s independent automotive aftermarkets

Slide of the month (SOTM) June. Consumer goods across Africa

Slide of the month (SOTM) May. Glass production in Africa

Slide of the month (SOTM) April. The sugar industry in East Africa

 

Slide of the month (SOTM) June. Consumer goods across Africa

Consumer goods markets in Africa have over the past 10-20 years become increasingly interesting for international companies. Growing overall populations and especially the growing middle class have motivated companies from around the world to expand their footprint on the continent. One learning during this process is that Africa is more diverse than previously assumed.

This slide gives an interesting example: consumer goods in Algeria are usually sold through a distribution network that resembles that of some European countries. In Ethiopia on the other hand, a vast variety of products first passes through “Merkato Market”, a relatively chaotic but hugely important trading centre in the capital Addis Ababa. Further differences between the two markets exist in the type of products traded along these networks, the profiles of companies active in them and in many more areas. For all key African countries, these differences need to be understood and their impacts taken into consideration when building up structures as a foreign company.

Read other SOTMs (Slides of the month) here.

Slide of the month (SOTM) May. Glass production in Africa

Slide of the month (SOTM) April. The sugar industry in East Africa

Slide of the month (SOTM) March. The rope manufacturing industry in Africa

Slide of the month (SOTM) February. Obtaining finance in Côte d’Ivoire

Slide of the month (SOTM) January. Internet speeds across Africa

Slide of the month (SOTM) April. The sugar industry in East Africa

Agri processing is often referred to as one of the most promising areas for many African countries to develop their economies. In this project, africon was tasked to prioritise countries and sectors to (in a next stage) efficiently identify potential customers for a client. The sugar industry, as one of the evaluated industries, scored a “medium” potential for our client – though the image varies across the region. While many East African countries have sugar producing industries, only Ethiopia has over the recent years registered significant growth in sugar output and might continue to do so over the next 2-3 years. On the other hand, many sugar mills in the region suffer from high production costs and dwindling or stagnating output. Through the results and the continuation of this project, we will not only identify the most promising first customers for our client in East Africa, but we will also provide direction for future sales efforts in the region.

Read other SOTMs (Slides of the month) here.

Slide of the month (SOTM) March. The rope manufacturing industry in Africa

Slide of the month (SOTM) February. Obtaining finance in Côte d’Ivoire

Slide of the month (SOTM) January. Internet speeds across Africa

Slide of the month (SOTM) December. Automotive market in Uganda

Slide of the month (SOTM) November. Chemicals application sectors in Nigeria

Slide of the month (SOTM) September. Consumer goods distributors in Ethiopia

The impressive growth of Ethiopia over the past decade has put the country on the map in the consumer goods business. In this project, africon identified and recommended potential distribution partners for the client locally. After meeting approximately 20 consumer goods distributors, africon rated and ranked the firms according to key performance indicators previously agreed upon with our client.

Even though East Africa Holding did not make it to the shortlist of the most interesting potential partners, africon was impressed by the company’s strong local networks and standing in the market. Its focus on own manufactured goods provide a strong asset in times of Ethiopia’s forex crisis – even though it (at least presently) reduces the company’s priority on imported foreign brands.

If you would like to know more about consumer goods and FCMG in Ethiopia or other parts in Africa, do not hesitate to get in touch with our team.

Slide of the month (SOTM) June. Plastic film imports in Nigeria

The growth of plastic film imports over the past ten years is a demonstration of the increased adoption of plastic film packaging in Nigeria. Along with the growth in usage of plastic films comes a vast variety of opportunities related products and services – from raw materials to mechanical engineering. 

Polyethylene (PE) film is by far the most popular plastic film material used in Nigeria due to its versatility and wide areas of application. 

If you would like to know more about the plastic film industry in Nigeria, how to access this market, or who the right local partners and  customers are, do not hesitate to get in touch with us.

Fish waste in ghana

Slide of the month (SOTM) September. Fish waste in Ghana

Fish waste in ghana

For this slide of the month, our West Africa team has done in-depth research on the fish sector in Ghana. The value chain analysis shows that despite partly very modern and efficient fish production there is still a huge food loss during processing, packaging and logistics. This challenge means also a great potential for investments to reduce food waste where africon together with the SAVE FOOD initiative are strongly committed.

Please do not hesitate to contact us directly for any further information on this opportunity.

Slide of the month (SOTM) August. East Africa BOPP demand

This slide of the month tries to shed some light on the BOPP market in East Africa.  BOPP demand has been growing at a remarkable pace of over the past decade driven mainly by the booming food industry, rapid urbanization and modernization of retail channels.  BOPP use more than doubled from 2010 to 2016 and is expected to maintain the trend and double again onto 2022.

Kenya is the biggest BOPP market dwarfing all the other East African countries. This can be attributed to its more mature manufacturing sector and the higher penetration of modern retail channels that drive the demand for sophisticated packaging.

Plastic packing Nigeria

Slide of the month (SOTM) July. Plastic packaging in Nigeria

Plastic packing Nigeria

 

This slide of the month tries to shade some light on the plastic packaging sector in Nigeria.  Nigeria’s packaging industry is projected to be worth $294 billion by 2020, up from $178 billion in 2012. Local market experts further suggest the market is 15 years behind India and about 30 years behind Europe but it is on a steady growth path as innovative solutions are being introduced into the market from across the world. By far, BOPP is the most utilized packaging material used in Nigeria followed by PE which has very diverse applications, same as BOPP. Plastics top the chart for most preferred packaging product used by manufacturers in Nigeria with soft drinks, beverages (currently at 10% CAGR) and personal/home care products driving this trend.