Categories: Markets

Nigerian Food Industry Worth Over 1trillion Naira, AFFCON

  • Nigerian Food Industry Worth Over 1trillion Naira

The Association of Fast Food and Confectioners of Nigerian (AFFCON), an umbrella body of Quick Service Restaurants (QSR) has revealed that the Nigerian food industry is estimated to worth over a trillion Naira, with the Fast Food segment gulping over N250 billion, and this number is still expected to rise in the future.

Euromonitor, a leading research firm also stated that the Nigerian food industry is one of the best-performing industries in country despite the economy downturn and huge decline in consumer spending power over the years. The industry has grown so well and consumers are still making the switch from unpackaged and unbranded products to packaged products as they become more aware.

They further revealed that apart from providing aesthetic appeal, the packaging of food products also has a protective role to play. This was revealed at a stakeholder’s forum held at the La Casera factory this week.

Another segment they said worth examining is the Carbonated Soft Drink (CSD) segment, which undoubtedly has become the most competitive and aggressive in the food industry as a whole. This is as a result of changes in consumer’s lifestyle and their demand for quality, durability and convenience, which saw the transition from the use of glass bottles for beverages to highly versatile PETs and Tetrapak designs.

The CSD market in Nigeria has continued to grow despite economic difficulties even as new brands make their way into Africa’s biggest market. CSD’s share joint demand with food and fast foods, which further helps both segments to stay afloat.

Reacting to health concerns over its use as a packaging material, the Food and Drug Administration (FDA), Health Canada, the European Food Safety Authority and NAFDAC have all agreed that “PET is a biologically inert material that doesn’t react with foods or beverages and it is resistant to attack by micro-organisms, as it has been thoroughly reviewed and approved as safe for contact with food and drinks.”

Food processing offer consumers a range of products which comes in different forms such as nuts, baked foods, canned drinks, carbonated beverages and several others, the Nigerian market has also witnessed this array of products, especially in the Carbonated Soft Drink (CSD) segment like La Casera, who pioneered the use of PET bottles in Nigeria.

The beverage, which is a leading CSD brand, made its debut in the Nigerian market in 2001 as the first of its kind in PET bottle, containing 4% apple juice concentrate, which makes it distinct.

The Special Assistant to the Director General, NAFDAC, Mr. William Effiok who represented Mrs. Yetunde Oni, the NAFDAC DG at the forum, praised the company on its state-of-the-art ultra-modern production line, which is operated with no human interference in the process. On his part, the Director, Product Certification, Standards Organisation of Nigeria (SON), Mr. Bayo Adigun, told Nigerians that his visit to the production facility was more of an exercise to foster greater relationship, as SON already certified the company since its inception, and its consumption as a healthy drink is guaranteed.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Samed Olukoya

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