Dairy products are highly nutritious and a healthy protein option for most consumers in Ghana. As such, it is a common Fast-Moving Consumer Good (FMCG) on the shelves and in the stores of most consumer retail outlets which proves the investment in Ghana\u2019s Dairy Market. Dairy products are versatile; they are consumed by individuals of all age groups in varied preparatory forms \u2013 sometimes as solid food and other times as beverages. Dairy products are made from milk and include foods such as butter, cheese, ice cream, yogurt, and whipped cream among others.<\/p>\n
Ghana\u2019s dairy market has shown remarkable growth signs in the past decade. The demand for dairy products continues to rise steadily owing to changes in consumer diets that have resulted from greater global integration. There is also a growing middle-income and urban population with better access to various forms of dairy products. Notwithstanding the growing demand, domestic supply is well below the effective market demand, creating a dependence on imports to close the deficit in the market. Greater exposure to foreign media has also made consumers more adventurous and aware of multiple product categories and brands and their different value offerings. Each year, several brands and categories of domestic and imported dairy products are introduced into the market creating a competitive landscape for the dairy sector.<\/p>\n
Domestic Production of Dairy Products<\/strong><\/p>\n Ghana’s domestic dairy market is heavy on the production of milk and cream products. A greater proportion of domestic players produce and distribute primarily milk and cream products, specifically; powdered milk, evaporated milk, fresh milk, and ice cream. Very few players manufacture fresh milk, with cheese and butter products usually produced on a small scale and mostly in informal settings. Locally, cow milk is the main source of fresh milk consumed in the country. About 45,000 tons of fresh milk is produced annually largely by pastoralists such as the Fulanis. Pastoral production of fresh milk is informal and accounts for more than 90% of total fresh milk produced in Ghana. Mostly, middle to high-income earners are cautious about patronizing local fresh milk because of concerns about their hygienic status.<\/p>\n Commercial production of dairy in Ghana falls under three broad categories based on scale and product coverage: large-scale production, medium-scale production, and small-scale production.<\/p>\n Over the past five years, domestic dairy production has experienced remarkable growth signs. More local entrants have taken an interest in the market by establishing dairy production hubs while existing players continue to expand their production lines by introducing new ranges of dairy products into the market. Presently, despite competition from foreign brands, notable domestic players have capitalized on their understanding of the thriving market and their comparative advantage to gain a fair share of the market. These domestic players together with their brands have become household names, dominating the milk and cream market of the dairy sector. Notwithstanding, there are several foreign brands in the market. The table below provides details on the notable domestic players within the dairy market:<\/p>\n \u00a0<\/strong>Key Domestic Players in Ghana\u2019s Dairy Market<\/strong><\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yoghurt<\/td>\n Yogurt:<\/strong> Fan Yoghurt, Super Yoghurt<\/td>\n<\/tr>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Milk Powder<\/p>\n <\/td>\n Milk Powder:<\/strong> Nido, Gloria<\/em><\/p>\n <\/td>\n<\/tr>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0Cheese<\/td>\n <\/p>\n Cheese:<\/strong> Le Berbere<\/em><\/td>\n<\/tr>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 UHT Milk<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Butter<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cheese<\/td>\n UHT Milk:<\/strong> Dano<\/em><\/p>\n Butter:<\/strong><\/p>\n Cheese: <\/strong><\/td>\n<\/tr>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Butter<\/td>\n Butter:<\/strong> Alimo<\/em><\/td>\n<\/tr>\n The Dairy Import Market<\/strong><\/p>\n In 2022, about $ 115 million worth of dairy products were imported into Ghana, equivalent to some 50 thousand tons of products. The import volumes were however lower than the volumes in 2021 which was around 67 thousand tons of products, representing a decline of about 26%. The dominant dairy product categories imported are milk and cream products and Whey, usually used as raw materials by domestic dairy production units.<\/p>\n <\/p>\n <\/p>\n Figure 1: The Import Dairy Market in Ghana, 2022 [Source: Ministry of Trade and Industry]<\/em><\/p>\n \u00a0<\/strong><\/p>\n The Diary Export Market<\/strong><\/p>\n Ghana exported some 9.4 thousand tons of dairy products in 2022, mostly to neighboring West African markets. The primary dairy exports are yogurt products, ice cream, evaporated milk, and milk powder. In 2022, about 3.2 thousand tons of yogurt products were exported from Ghana mainly to Cote d\u2019Ivoire, Burkina Faso, Togo, and Benin. Likewise, about 3 thousand tons of ice cream was exported to neighboring Cote d\u2019Ivoire and Togo. Evaporated milk and milk powder are mostly exported to Nigeria and Burkina Faso. The dominant exporting companies are Nestle, Fanmilk, Promasidor, and Tony Norvisi Supply.<\/p>\n Key Market Developments \u2013 A Growing Health Sense Among Consumers<\/strong><\/p>\n There has been an increasing draw towards healthy options in Ghana\u2019s diary market largely due to the growing urbanization and greater media exposure. Specifically, there has been an increased demand for skimmed milk and non-dairy creamer options.<\/p>\n Increasing\/ Growing Demand for Skimmed Milk<\/strong><\/p>\n Growing health consciousness among consumers has led to an increasing preference for non-fat milk among consumers; skimmed milk, also known as fat-free milk contains less fat and, in some cases, no fat at all. Due to the wellness and health benefits of skimmed milk, demand for skimmed milk continues to rise, averaging 2.3 thousand tons per year in the past 5 years.<\/p>\n <\/p>\n Growing Demand for Non-Diary Options<\/strong><\/p>\n Like other healthy options, preference for non-dairy has been on the rise, especially in the past 3 years. Though the import volumes remain low compared to other milk and cream products, there is a stack difference between the average annual import levels during 2013-2017 (32 thousand kilograms) and 2018-2023 (162 thousand kilograms). The table below shows a steep rise in non-dairy options.<\/p>\n <\/p>\n Market Outlook and Opportunities<\/strong><\/p>\n Presently, milk and cream products dominate Ghana’s dairy market and will continue to dominate the dairy market, especially powdered and evaporated milk because of its longevity as well as the fact that consumers have developed a deep taste preference for it. Notwithstanding, other dairy products such as non-dairy products, and skimmed milk are expected to become a staple in the homes of most middle and high-income earners.<\/p>\n Further, brand loyalty in Ghana’s dairy market among consumers will continue to weaken due to the economic downturns. As a result, several opportunities exist for existing players and new entrants to introduce more options for low-priced milk and cream products, especially powdered milk and evaporated milk. Powered and evaporated milk is widely consumed across the country especially among low to middle-income groups that are severely affected by the difficult economic conditions.<\/p>\n Also, there is an unexplored opportunity for standardizing the production of cheese in Ghana. The \u2018wagashi\u2019 cheese is the only known Ghanaian cheese type produced locally (and in commercial quantities) in Ghana and it is widely consumed across Ghana. However, several Ghanaians, especially the growing middle class, are not able to enjoy this product because of the lack of standardization in its production.<\/p>\n About Firmus Advisory Limited<\/strong><\/p>\n Firmus Advisory<\/a> offers a comprehensive range of market research services including market and sector insights as well as customer satisfaction studies. Employing the full set of market research tools (depending on a business\u2019s particular need), we unearth insights that will help you understand a business situation and make insightful and profitable decisions. Over the years, we have provided research services to several local and international companies and have obtained optimal experiences in the areas of customer experience surveys, market insights, and brand tracking studies across multiple sectors. Contact us<\/a> today for all your professional research needs.<\/p>\n About the Authors<\/strong><\/p>\n Anita Nkrumah<\/p>\n Head, Research and Trade Development<\/strong><\/p>\n Firmus Advisory<\/strong><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Rachel Dampson<\/p>\n Research Executive<\/strong><\/p>\n Firmus Advisory<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Dairy products are highly nutritious and a healthy protein option for most consumers in Ghana. As such, it is a common Fast-Moving Consumer Good (FMCG) on the shelves and in the stores of most consumer retail outlets which proves the investment in Ghana\u2019s Dairy Market. Dairy products are versatile; they are consumed by individuals of […]<\/p>\n","protected":false},"author":3,"featured_media":38966,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[],"jetpack_featured_media_url":"https:\/\/firmusresearch.com\/wp-content\/uploads\/2023\/11\/Ghana_Dairy_Market_Firmus_Research.jpg","yoast_head":"\n\n
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\n Company Name<\/strong><\/td>\n Year of Establishment<\/strong><\/td>\n Business Outline<\/strong><\/td>\n Dairy Product Line<\/strong><\/td>\n Dairy Brands<\/strong><\/td>\n<\/tr>\n \n Fan Milk Plc<\/strong><\/td>\n 1959<\/td>\n Produces and distributes milk-based and fruit-based milk, yogurt, and ice cream products.<\/td>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ice cream<\/p>\n Ice cream:<\/strong> Fan Ice<\/p>\n \n Nestle Ghana <\/strong><\/td>\n 1968<\/td>\n Specializes in manufacturing and distributing dairy products, co-parkers, culinary, chocolate drinks and confectionery, baby foods, cereals, coffee, and drinking water.<\/td>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Evaporated Milk<\/p>\n Evaporated Milk<\/strong>:<\/strong> Ideal, Carnation<\/em><\/p>\n \n Promasidor Ghana<\/strong><\/td>\n 1999<\/td>\n Manufactures and distributes dairy products, cereal, culinary, beverages, and non-dairy products.<\/td>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Milk Powder<\/p>\n Milk Powder:<\/strong> Cowbel, Miksi, Mixwell, Loya<\/em><\/p>\n \n \u00a0<\/strong><\/td>\n <\/td>\n <\/td>\n \u00b7<\/td>\n \u00a0<\/strong><\/td>\n<\/tr>\n \n Arla Foods<\/strong><\/td>\n 2017<\/td>\n Manufactures dairy products including milk and cream, butter, and cheese products<\/td>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Milk Powder<\/p>\n Milk Powder:<\/strong> Dano<\/em><\/p>\n \n \u00a0<\/strong><\/td>\n <\/td>\n <\/td>\n \u00b7<\/td>\n <\/td>\n<\/tr>\n \n Mafricom Ghana Limited<\/strong><\/td>\n 2020<\/td>\n The company manufactures and distributes dairy products, grains, cereal, packaged and frozen foods, beverages, pharmaceuticals, and clothing.<\/td>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Powdered Milk<\/p>\n Powdered Milk<\/strong>: Momo<\/em><\/p>\n \n Nature Farms Ghana Limited<\/strong><\/td>\n <\/td>\n Produces fresh milk<\/td>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Fresh Milk<\/td>\n Nature<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n