Dairy products and alternatives in 2025: The big picture
Dairy products and alternatives is expected to register double-digit current value growth in 2025, though constant value and volume growth is much more subdued, as inflation remains high. That being said, it is an improving picture, with inflation more stable than in 2024. Consumers have also adjusted their behaviour by focusing on affordable brands and smaller pack sizes, which mean a smaller financial outlay per purchase. Key products such as evaporated milk, powder milk and yoghurt are expected to see a healthy increase in volume sales, as they are deemed essential, while niche products such as plant-based dairy is expected to see volume sales being unchanged, which cheese is expected to register a decline.
Key trends in 2025
While affordability continues to be the main driver of sales, there is also increasing awareness of nutrition. While evaporated milk and powder milk have always been popular, in recent years there had been a significant shift to coffee whiteners, which are known as non-dairy creamers in Nigeria. The availability of coffee whiteners in small sachet packs since 2022 had made this shift even more pronounced. However, evaporated milk and powder milk are winning back some value share, as consumers are increasingly concerned about the low nutritional value of coffee whiteners. However, they remain popular among lower-income consumers.
Competitive Landscape
FrieslandCampina WAMCO Nigeria Plc continues to have a commanding lead, accounting for well over a quarter of value share. Its Peak brand is perceived as high quality and Three Crowns is positioned as an affordable alternative. In spite of its high prices, Peak has performed well in recent years, with the introduction of smaller pack sizes helping to sustain volume sales. The company has also benefited from the introduction of new brands over the review period, with Nunu drinking yoghurt launched in 2022 in small pack sizes boosting its share in yoghurt, while it launched My Boy Eldorin into Growing-Up Milk Formula in 2024. The company’s nationwide distribution and aggressive marketing strategies also contribute to its success. For instance, the company carried out a recent campaign for Peak titled “Breakfast for You”, which advertises its small pack variant called Peak Mini, and promotes its nutritional benefits and the many ways it can be consumed. It has also engaged in direct-to-consumer activities such as the “Breakfast Café on Wheels” which gives consumers an opportunity to sample the brand. The brand Three Crowns is also heavily advertised.
Channel developments
Small local grocers continue to dominate, accounting for well over eight-tenths of value share. The convenient location of such outlets in local neighbourhoods continues to support value sales. They also sell smaller pack sizes, which reduces the financial outlay per purchase. However, in terms of brick-and-mortar channels in 2025, supermarkets gain the most value share. They have the largest ranges, including more niche brands, and also offer savings when buying in bulk. Western products such as butter and cheese are also mainly distributed through modern grocery retailers. In addition, new outlets are regularly opening and whereas before supermarkets were generally located on the outskirts of urban areas, they are now increasingly located in more convenient residential areas. An example is the supermarket chain, FoodCo. However, in 2025, e-commerce gains the most value share, though from a very low base. The channel is also more popular when buying in bulk. Also, while the retail digital space in Nigeria is dominated by marketplaces Jumia and Konga, online food retailer Supermart.ng is growing in popularity. Customers place orders through the website, and Supermart.ng then partners with grocery retailers and manages the delivery process, offering same-day delivery in many cases.
What next for dairy products and alternatives?
A positive economic outlook, including a more stable exchange rate and increasing oil prices will support sales. However, there are substantial economic risks, including the uncertainty caused by US President Trump’s tariffs and the impact on the global economy.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Nigeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Nigeria, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Nigeria report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Nigeria?
- Which are the leading brands in Dairy Products and Alternatives in Nigeria?
- How are products distributed in Dairy Products and Alternatives in Nigeria?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Nigeria?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Nigeria
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in Nigeria
KEY DATA FINDINGS
Recovery in sales in 2025
Nestlé continues to dominate
Small local grocers dominate, though supermarkets gaining
Positive outlook over forecast period
Local companies gain foothold in baby food
Growing-up milk and packaging key areas of focus
Butter and Spreads in Nigeria
KEY DATA FINDINGS
Recovery in volume sales for margarine and spreads
Sigma Silver Foods continues to lead
Small local grocers hold near monopoly
Continuing value growth over forecast period
Urbanisation and the growing demand for bread supports growth
Focus on margarine with a healthier positioning
Cheese in Nigeria
KEY DATA FINDINGS
Further fall in volume sales in 2025
Lactalis dominate, though Arla gains
Supermarkets dominate distribution
Positive constant value growth over forecast period
Continuing expansion of modern grocery retailers supports growth
Positioning of cheese as healthy supports value sales
Drinking Milk Products in Nigeria
KEY DATA FINDINGS
Moderate volume growth in 2025
FrieslandCampina WAMCO holds on to tight lead
Small local grocers hold near monopoly
Rosy outlook over forecast period
Opportunities for growth
Increasing demand for higher value offerings
Yoghurt and Sour Milk Products in Nigeria
KEY DATA FINDINGS
Healthy volume growth in 2025
Ranona holds on to tight lead, though competition hotting up
Small local grocers continue to dominate
Further constant value and volume growth over forecast period
Yoghurt’s association with gut health supports value sales
Flavours and distribution key battleground
Other Dairy in Nigeria
KEY DATA FINDINGS
Best performing dairy product in 2025
FrieslandCampina WAMCO continues to lead, though loses significant value share over review period
Small local grocers continue to have commanding lead
Positive outlook over forecast period
Players look to inform about benefits of dairy
Packaging key battleground
Plant-Based Dairy in Nigeria
KEY DATA FINDINGS
Muted performance for plant-based dairy
Green Spot continues have commanding lead
Small local grocers dominate
Positive growth over forecast period
Plant-based dairy benefits from health and wellness messaging
Flavour key battleground, with modern grocery retailers driving growth
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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