By NKIRUKA NNOROM
The Fast Moving Consumer Goods, FMCG, sector’s contribution to the country’s GDP now stands at 24.3 per cent.
The recent momentous growth being witnessed in the FMCG sector presents unusual opportunity for Nigerian flour millers to unleash their growth potentials, a report by the Financial Derivatives Company, FDC, has shown.
FDC observed in its monthly Economic Bulletin for the month of August, themed, ‘Investment Case for Flour Mills & FMCG Sector in Nigeria’, that the changing consumer taste which tilts towards flour products favours growth in the flour milling business.
The report, specifically observed that the change in behaviour has led to food items like pasta and noodles, which are not of Nigerian origin, to now make up a significant portion of the population’s diet as well as consumer spend.
According to the report from FDC, this positions the flour millers at the forefront of opportunities in the country.
FDC said, “The FMCG sector remains one of the fastest growing sectors of the economy and we believe opportunities still exists in this sector. The size of the market is heavily influenced by the country’s demographic dynamics and the profound influence that western culture is having on consumer tastes.”
Giving a statistical breakdown of activities in the FMCG sector, the company said Nigeria’s consumer market was estimated at approximately N15 trillion with the food and drinks accounting for the largest component.
The Nigerian population which is estimated at approximately 168m people, majority of which in the 16-35 age bracket, also presents an advantage for the millers, the company further stated.
“The FMCG sector has benefited the most from this young burgeoning population. The sector grew 10 per cent from 2000 until 2010 with the sector’s contribution to GDP increasing from 13 per cent to 24.3 per cent over the same period.