Nigeria Refined Sugar Market Report and Forecast 2024-2032

Nigeria Refined Sugar Market Size

The Nigeria refined sugar market attained a value of USD 1,835.11 million in 2023. The market is estimated to grow at a CAGR of 5.19% during 2024-2032 to reach a value of USD 2,619.81 million by 2032.

Nigeria Refined Sugar Market Outlook

• By 2025, the retail food sector is anticipated to contribute 16.4% to the GDP.

• According to a recent World Bank estimate, around 53% of Nigeria's population now resides in urban areas, a figure expected to exceed 70% by 2050.

• As of 2022, Nigeria’s quick-service restaurant sector has over 200 brands operating several hundred outlets across the country.

Nigeria Refined Sugar Market Growth Rate

Nigeria is the second largest sugar market in Sub-Saharan Africa, following South Africa. As of July 2023, an estimated 1.6 million metric tons of refined sugar is produced each year in Nigeria.

The primary purpose of growing and processing sugarcane in Nigeria is sugar production. There are about 800,000 hectares of potentially fertile land in Nigeria that can be used to grow sugar cane, especially along the whole length and breadth of the Niger and Benue Rivers. The Nigerian government encourages smallholder farmers to produce sugarcane for sugar mills. Savannah Sugar and Oyo Sugar-cane Processors are two prominent outgrower organisations in Nigeria.

Nigeria's bakery products market is expected to grow due to increasing demand for ready-to-eat foods driven by hectic work schedules, as well as rising interest in gluten-free, high-fiber, and trans-fat-free baked goods. An average bakery product, such as bread, generally contains 4 grams of sugar, and a single pastry or a slice of cake can contain around 10 to 30 grams of refined sugar.

Figure: Number of Bakery and Cake Shops in Nigeria by State/Territory

The key factors contributing to Nigeria’s economic growth include the output of the manufacturing sector, oil revenue, and health expenditures, among others. The production of the manufacturing sector is positively and significantly correlated with GDP growth, demonstrating the industry's beneficial effects on the economy.

Figure: Annual % change in Real GDP Growth and Inflation Rate in Nigeria, 2018-2023

Key Trends and Developments

Expanding population in Nigeria; rising demand for processed food and beverages; presence of favourable government initiatives; and major players owning significant sugar-producing farms are the key trends impacting the Nigeria refined sugar market growth

May 2, 2024

Dangote Sugar Refinery Plc (DSR) announced its plans to produce 700,000 metric tonnes of refined sugar from locally cultivated sugarcane in the next four years. The company also revealed its ten-year plan to use local sugarcane to manufacture 1.5 million MT of sugar annually. The company also plans to expand its DS Numan factory and grow more sugarcane. It aims to have 24,200 hectares of land by 2029 for sugarcane production.

Apr 19, 2024

The Federal Government embarked on its efforts to launch Phase II of the Nigeria Sugar Master Plan (NSMP) to achieve a minimum production capacity of 2 million metric tons of sugar, generate 400 MW of electricity, and create 110,000 jobs throughout the entire value chain nationwide.

Apr 27, 2022

Flour Mills of Nigeria Plc announced the launch of its Sunti Brown Sugar. The premium quality brown sugar is incorporated with Vitamin A and other additional nutritional benefits.

Growth in population aids the demand for sugar

Nigeria is witnessing strong growth in population and urbanisation. By 2050, Nigeria's population is expected to grow to 377 million. Further, in 2023, 53.9% of the Nigerian population lived in urban areas. A rising population and growing urbanisation are key drivers for the refined sugar market in the country. The increasing population and the rise in the working-age demographic, supports higher sugar consumption.

The growing demand for processed food and beverage products aids the demand for sugar

Food processing is the fastest-growing segment of the sugar value chain in Nigeria. Nigeria has a robust demand for sugar-intensive items such as bakery and confectionary products and soft drinks. As of April 2024, Lagos State was home to 833 bakery and cake shops in total, the highest in Nigeria. The growing demand for bakery products increases the demand for refined sugar, such as brown sugar, as the molasses content in the sugar enhances the flavour and colour of bakery items such as cookies and muffins.

Government policies help to expand sugar production

In 2012, the Nigerian government approved the Nigerian Sugar Master Plan (2013–2023) to enhance domestic sugar production and refining, by restricting imports and providing incentives for investors in sugar estates and refining mills. Further, this plan has been extended to 2033. Leading domestic companies such as Dangote Sugar, BUA Foods, and Golden Sugar are enhancing their sugarcane production and processing under this plan. As of 2022, the companies have invested USD 1 billion since the enforcement of the Plan.

Key players in the Nigerian refined sugar market own farms across the country to supply their refineries with raw sugar

Dangote Sugar operates three plantations: Savannah in Adamawa State, Lau Tau in Taraba State, and Tunga in Nasarawa State. Products from these farms are processed at a refinery located in Adamawa, while the Lagos State refinery processes imported raw sugar. Golden Sugar operates a sugar estate in Sunti, Niger State, with one refinery in Lagos State. The refinery has a production capacity of 750,000 tons per annum.

Nigeria Refined Sugar Market Trends

The National Cereals Research Institute Badeggi (NCRI) is advancing sugarcane research by improving sugarcane varieties, which are cultivated by both smallholder farmers and large estates. The government established the National Sugar Development Council (NSDC) to accelerate the sugar sector's development and strengthening self-sufficiency. Such initiatives aim to ensure the availability of pure, clean, and high-quality sugarcane seeds, thereby supporting the growth and development of the Nigeria refined sugar market.

Food processing industry offers great opportunities for sugar manufacturers in Nigeria, driven by changing demographics and increasing consumer acceptance of processed foods nationwide. Although the sugar industry is expanding slowly, subsectors dependent on sugar inputs are gearing up to meet the rising demand, fueled by an expanding middle class seeking a wider variety of processed foods.

Nigeria Refined Sugar Industry Segmentation

“Nigeria Refined Sugar Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Brown

• White

Market Breakup by Source

• Sugarcane

• Sugar Beet

Market Breakup by End Use

• Food and Beverage

• Pharmaceuticals

• Dairy

• Bakery and Confectionery

• Soft Drinks

• Household

• Others

Nigeria Refined Sugar Market Share

Based on product type, white sugar accounts for a significant share of the Nigeria refined sugar market

Pharma-grade sugar is a white crystalline coarse sugar that is super fine and homogenous in nature. By 2025, the pharmaceutical market in Nigeria is expected to reach USD 5.13 billion.  The sugar is used in the production of dry syrups, pellets, and sustained-release drug formulations. It prevents microbial growth and enhances the texture of drugs.

Nigeria is a significant importer of brown sugar. In 2021, Nigeria spent USD 1.02 billion to import brown sugar from Brazil. Compared to white sugar, brown sugar contains more calcium, with 83 mg per 100 g compared to 1 mg per 100 g of white sugar. Other minerals, such as iron, are slightly higher in brown sugar than white sugar.

Based on end use, households are a major contributor to the  Nigeria refined sugar market revenue

Domestic consumers typically purchase sugar that is fortified with Vitamin A. Manufacturers produce this sugar in accordance with the requirements of the UNICEF and the Standards Organization of Nigeria (SON).

The Nigerians spending on food and beverages is increasing owing to the growth of the retail sector and rising demand for packaged goods. Among the international chains that have entered the country are Shoprite which operated 40 stores in 2021, and Massmart, part of the WalMart group.

Sugar bread is Nigeria’s most popular bakery product widely available at both artisan and industrial bakeries. A special feature of Nigerian sandwich bread is its sweetish taste which is a result of sugar as its key ingredient. The sugar bread recipe contains around 7 to 12% sugar.

Nigeria Refined Sugar Market Leaders

The companies in the Nigeria refined sugar market are focusing on providing high quality products to meet the needs of the growing population.

BUA Group

BUA Foods is one of the leading players in Nigeria's food sector, with strategically located plants and a strong position in fast-moving consumer goods. In 2022, company registered an operational capacity of 1,500,000 Mtpa of sugar.

Dangote Industries Limited

As a fully integrated conglomerate, Dangote leads in the production of cement, sugar, salt, packaging materials, fertilisers, and petrochemicals as well as conducting port operations. At Apapa, the company’s sugar refining facility is the largest in Sub-Saharan Africa, with an installed capacity of 1.44 million tons per annum.

FMN Plc

Incorporated on 1960, FMN is a publicly traded, vertically integrated company, engaged in food, sugar, agro-allied, and support services. FMN has about ten thousand hectares of sugarcane plantations and operates one of the most advanced refineries in the world.

Graceco Limited

Headquartered in Lagos, Graceco is formed by the merger of two family-owned companies, Gracekal Enterprises Limited and Bakers World Limited. The company processes, packages, and distributes food products across Nigeria and internationally.

Dogan's Sugar Limited

Founded in Lagos, Nigeria, in 2013, Dogan's Sugar Limited produces high-quality cube sugar using entirely Nigerian raw materials. Dogan's Sugar Limited provides several sugar products including icing sugar, sugar cubes, and granulated white sugar.

Key Highlights of the Report

Nigeria Refined Sugar Market Report Snapshots

Nigeria Refined Sugar Market Size

Nigeria Refined Sugar Market Growth

Nigeria Refined Sugar Market Trends

Nigeria Refined Sugar Market Share

Nigeria Refined Sugar Companies