The Nigeria dairy market was valued at 1653.02 Million Liters in 2025. The industry is expected to grow at a CAGR of 2.80% during the forecast period of 2026-2035 to reach a value of 2178.76 Million Liters by 2035. The market growth is driven by the increasing efforts to strengthen the local milk supply chain.
Malnutrition remains one of the most pressing public health challenges in Nigeria, with about one in three children under five years old affected by stunting. In June 2024, UNICEF reported that around 11 million Nigerian children were living in severe food poverty. This highlights an urgent need for nutrient-dense foods such as milk and yoghurt that can address protein-energy malnutrition and micronutrient deficiencies, particularly among vulnerable groups like young children and pregnant women.
Dairy products are positioned to bridge this nutrition gap due to their high content of quality proteins, calcium, vitamin B12, lysine, and other nutrients crucial for healthy growth and cognitive development. Consequently, leading to a growing consumption of dairy in Nigeria, thereby supporting the Nigeria dairy market.
Recognising the powerful impact of dairy products on nutrition, several large-scale initiatives have been launched to strengthen local milk supply chains and improve livelihoods. For instance, the Advancing Local Dairy Development in Nigeria (ALDDN) Programme, launched in Abuja in January 2020 by the Bill and Melinda Gates Foundation. It was a five-year initiative aimed at transforming the dairy sector by empowering smallholder women farmers and improving nutrition outcomes from 2020 to 2024.
Over its duration, the ALDDN programme targeted 60,000 dairy farmers across 15,000 households in key dairy-producing states, including Adamawa, Jigawa, Kaduna, Kano, and Plateau. It formalised milk supply chains, improved animal health, and trained farmers, working closely with federal and state governments. The move boosted local milk production to over 190,000 litres per day, reducing imports and improving access to fresh dairy products, further supporting Nigeria dairy market expansion.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
2.8%
Value in Million Liters
2026-2035
*this image is indicative*
|
Nigeria Dairy Market Report Summary |
Description |
Value |
|
Base Year |
Million Liters |
2025 |
|
Historical Period |
Million Liters |
2019-2025 |
|
Forecast Period |
Million Liters |
2026-2035 |
|
Market Size 2025 |
Million Liters |
1653.02 |
|
Market Size 2035 |
Million Liters |
2178.76 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
2.80% |
|
CAGR 2026-2035 - Market by Product Type |
Cheese |
3.4% |
|
CAGR 2026-2035 - Market by Distribution Channel |
Online |
5.4% |
Local sourcing and backward integration are significantly driving the Nigeria dairy market growth, as it enhances supply chain resilience while reducing dependence on imports. Companies are investing directly in dairy farming to ensure a steady supply of fresh milk. They are also providing local farmers with training and capacity building. Citing an instance, in 2024, Fan Milk PLC and Obasanjo Farms Nigeria Limited announced their partnership to develop a 2,500-hectare dairy farm in Oyo State to boost local milk production. Such initiatives foster economic growth and strengthen Nigeria’s dairy industry from farm to processing.
Nigeria is advancing genetic improvement and breed enhancement to double its milk output from 700,000 tonnes to 1.4 million tonnes annually by 2029 with an aim to cut the USD 1.5 billion dairy import bill. As of July 2024, despite owning over 20.9 million cattle, the country relied on imports for about 60% of its 1.6 million tonne annual milk consumption due to low-yield breeds. To counter this, Nigeria imported over 200 high-yield dairy heifers from Denmark to support intensive breeding. Additionally, eight new pasture species were registered for the first time in 48 years, thereby boosting Nigeria dairy market growth.
Robust government initiatives, notably the National Livestock Growth Acceleration Program (NL-GAS) and the National Dairy Policy (2023–2028), are supporting the Nigeria dairy market growth. These initiatives emphasise genetic upgrades, improved animal health, better feed systems, and increased access to finance. As per market reports, availability of policy-driven measures like tax breaks, duty waivers, farmer training, and women and youth empowerment programmes are developing a strong dairy value chain, supporting smallholders, and reducing Nigeria’s reliance on milk imports.
The launch of a demonstration dairy farm at Paikon Kore Grazing Reserve in Abuja in 2024, jointly developed by the federal government and Nestlé Nigeria, highlights the growing impact of public-private partnerships on Nigeria dairy market. With over ₦1.8 billion invested since 2019, the project integrates advanced technologies like semi-automated milking systems, sustainable waste management, and artificial insemination, boosting productivity and farmer income. Daily milk collection surged from 200 liters in 2021 to 6,000 liters. By targeting 30,000 liters per day by 2027, the initiative showcases how strategic collaborations can enhance local capacity, support pastoralists, and ensure long-term food security.
Innovative products leveraging dairy-plant blends are gaining significant traction in the Nigeria dairy market. By combining the nutritional strengths of dairy with cost-effective, locally available plant ingredients like soy, manufacturers are delivering essential nutrients such as protein, fibre, calcium, and iron at lower prices. In October 2023, Nestlé’s launch of a new instant milk powder in Central and West Africa exemplifies this trend. Developed locally at its R&D centre in Côte d'Ivoire, the product blends dairy with soy to ensure accessibility and versatility across various meals. Such innovations support both public health and local agricultural value chains.
The EMR’s report titled “Nigeria Dairy Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product
Key Insight: Milk leads the Nigeria dairy market attributed to its increasing consumption due to urbanization, rising health awareness, and improved cold chain logistics. Cream and butter are witnessing growth from the expanding foodservice sector and home baking trends. Milk powder remains vital in rural and semi-urban areas for its affordability and shelf life. Cheese demand is increasing, influenced by Western diets and quick-service restaurants. Yoghurt consumption is rising, fuelled by health trends and youth preferences. Other products like ghee and condensed milk are also gaining popularity with the growing middle class and culinary diversification.
Market Breakup by Distribution Channel
Key Insight: Supermarkets and hypermarkets dominate the Nigeria dairy market driven by the availability of a wide product range and ensuring cold chain compliance. The convenience store segment is recording notable growth as it caters to quick, on-the-go purchases, especially in densely populated regions. Online retail is growing steadily, mainly due to the widespread internet penetration, doorstep delivery, and the popularity of subscription-based dairy services across the region. Other channels, such as local dairy vendors and open markets, still remain essential in rural areas due to accessibility and cost-effectiveness.
By product, milk commands the largest share
Milk remains the dominant segment in Nigeria dairy market, attributed to the rising population in the region, resulting in the rising dairy consumption, particularly milk. The population of Nigeria exceeded 227 million in 2024 and is set to surpass 400 million by 2050. The expanding middle-income class and a large youth demographic are fuelling increased demand for nutritious and convenient dairy products like milk. This demographic shift boosts consumption as more households include milk in their daily diets due to its protein and essential nutrients.
The yoghurt segment is recording steady growth in the Nigeria dairy market owing to product innovation and rising demand for premium dairy options. Consumers now prefer yoghurts with health benefits, great taste, and convenient packaging. Brands are responding by launching natural, premium variants to meet rising demand, especially among higher-income groups. The focus on premiumisation further broadens the market and boosts profitability. A clear example is that, in November 2024, UAC Foods launched Supreme Yoghurt and Vanilla flavour, which quickly gained nationwide popularity.
By distribution channel, supermarkets and hypermarkets amasses the most revenue
Supermarkets and hypermarkets segment leads the Nigeria dairy market driven by the ongoing development of modern retail infrastructure, enabling product accessibility. Traditional markets often lack adequate storage and hygiene, limiting fresh dairy availability. In July 2024, MKH Properties and the Oyo State Government formed a partnership to develop the MKH Shopping Mall at Agodi Market, Ibadan. The project is scheduled for completion by August 2026 and is designed to feature over 700 modern retail units with enhanced facilities. Such initiatives provide a structured, hygienic environment supporting efficient supply chains and solidifying dairy distribution and local commerce.
The online distribution segment is witnessing the fastest growth rate in Nigeria dairy market primarily attributed to the rising internet penetration. According to a market report, internet data consumption soared over 1 million terabytes in January 2025, reflecting increasing digital activity and broadband expansion across the country. As more Nigerians access smartphones and the internet, online dairy purchases are rising, backed by better digital payments and growing trust in e-commerce. The ability to order fresh dairy products with doorstep delivery meets the needs of busy urban consumers and those seeking contactless shopping options, thereby propelling segment growth.
The major Nigeria dairy companies are intensifying efforts to meet evolving consumer needs through a mix of innovation and accessibility. They are launching affordable product formats, introducing blends of dairy and plant-based ingredients, and developing functional variants like probiotic yoghurts and nutrient-fortified milk powders. These offerings are designed to align with the preferences of middle- and lower-income groups while promoting better nutrition.
Alongside product development, several dairy companies are investing in long-term strategies to strengthen local value chains and ensure sustainable supply. Initiatives include farmer training programmes, local sourcing of ingredients such as soy, and the establishment of processing facilities to enhance dairy productivity. Many reputed Nigeria dairy companies are also deepening retail penetration through modern trade, digital platforms, and on-ground activations, thereby supporting market growth.
Denmark-based Arla Foods amba is a global dairy cooperative owned by farmers from across several European countries. It was established in the year 2000 and is one of the largest producers of dairy products in Europe, offering a wide range of high-quality milk, cheese, butter, and yoghurt under renowned brands like Arla®, Lurpak®, and Castello®. Additionally, Arla has a strong presence in international markets, including Nigeria.
Founded in 1919, Danone SA is a French multinational food-products corporation headquartered in Paris, France. The company operates in four key sectors: Essential Dairy & Plant-Based Products, Waters, Early Life Nutrition, and Medical Nutrition. Danone is a global leader in health-focused food innovations, with a strong commitment to sustainability and social responsibility. Its flagship dairy and plant-based brands include Activia, Alpro, and Dano.
FrieslandCampina WAMCO Nigeria PLC was established in 1954 and is headquartered in Lagos, Nigeria. It is a subsidiary of Royal FrieslandCampina, a Dutch multinational dairy cooperative. As a leading dairy company in Nigeria, the company plays a key role in Nigeria dairy market development initiatives, partnering with local farmers to strengthen backward integration and improve milk production.
AMAL Food & Beverages Limited is a Laos-based fast-growing Nigerian company specialising in dairy and non-alcoholic beverage products. The company is known for delivering affordable and high-quality consumer goods such as yoghurt drinks, powdered milk, and juice beverages. AMAL emphasises local sourcing and innovation to meet the evolving tastes of Nigerian consumers while promoting economic development.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other prominent players in the market include Zayith Foods.
Explore the latest trends shaping the Nigeria Dairy Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Get your free sample report or contact our team for customized consultation on Nigeria dairy market trends 2026.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the Nigeria Dairy Market reached an approximate volume of 1653.02 Million Liters.
The market is projected to grow at a CAGR of 2.80% between 2026 and 2035.
The key players in the market include Arla Foods, FrieslandCampina WAMCO Nigeria PLC, Danone SA, AMAL Food & Beverages Limited, CHI Limited, Fan Milk Nigeria (a Danone Company), and Nestlé Nigeria.
Key strategies include local sourcing and backward integration, launch of affordable and nutritious product variants, capacity building for dairy farmers, expansion of cold chain and retail infrastructure, and leveraging e-commerce and digital marketing to boost reach and accessibility.
The largest product segment in the market is milk, due to its widespread consumption driven by Nigeria’s rapidly growing population, urbanisation, and increasing health awareness. Milk is a staple in many households, providing essential nutrients and forming the base for other dairy products, which supports its dominant market share.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Product Type |
|
| Breakup by Distribution Channel |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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