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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 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
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.
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 Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product Type
Market Breakup by Source
Market Breakup by End Use
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.
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.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Product Type |
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Breakup by Form |
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Breakup by Source |
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Breakup by End Use |
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Market Dynamics |
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Competitive Landscape |
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Companies Covered |
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Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
Nigeria Refined Sugar Market Size
Nigeria Refined Sugar Market Growth
Nigeria Refined Sugar Market Trends
Nigeria Refined Sugar Market Share
Nigeria Refined Sugar Companies
*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.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
7 Opportunities and Challenges in the Market
8 Industry Outlook
8.1 Sugarcane Producing Regions in Nigeria
8.2 Sugar Projects Under the National Sugar Master Plan
8.3 Overview of Bakery Sector in Nigeria
8.4 Seven Upcoming Trends in Nigerian Economy
9 Nigeria Refined Sugar Market Overview
9.1 Key Industry Highlights
9.2 Nigeria Refined Sugar Historical Market (2018-2023)
9.3 Nigeria Refined Sugar Market Forecast (2024-2032)
10 Nigeria Refined Sugar Market by Product Type
10.1 Brown
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 White
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
11 Nigeria Refined Sugar Market by Source
11.1 Sugar Beet
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Sugarcane
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
12 Nigeria Refined Sugar Market by End Use
12.1 Food and Beverage
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Pharmaceuticals
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Dairy
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Bakery and Confectionery
12.4.1 Historical Trend (2018-2023)
12.4.2 Forecast Trend (2024-2032)
12.5 Soft Drinks
12.5.1 Historical Trend (2018-2023)
12.5.2 Forecast Trend (2024-2032)
12.6 Household
12.6.1 Historical Trend (2018-2023)
12.6.2 Forecast Trend (2024-2032)
12.7 Others
13 Market Dynamics
13.1 SWOT Analysis
13.1.1 Strengths
13.1.2 Weaknesses
13.1.3 Opportunities
13.1.4 Threats
13.2 Porter’s Five Forces Analysis
13.2.1 Supplier’s Power
13.2.2 Buyer’s Power
13.2.3 Threat of New Entrants
13.2.4 Degree of Rivalry
13.2.5 Threat of Substitutes
13.3 Key Indicators for Demand
13.4 Key Indicators for Price
14 Value Chain Analysis
15 Price Analysis
16 Manufacturing Process
16.1 Overview
16.2 Detailed Process Flow
16.3 Operations Involved
17 Competitive Landscape
17.1 Market Structure
17.2 Market Share of Leading Players
17.3 Company Profiles
17.3.1 BUA Group
17.3.1.1 Company Overview
17.3.1.2 Product Portfolio
17.3.1.3 Demographic Reach and Achievements
17.3.1.4 Certifications
17.3.1.5 SWOT Analysis
17.3.2 Dangote Industries Limited
17.3.2.1 Company Overview
17.3.2.2 Product Portfolio
17.3.2.3 Demographic Reach and Achievements
17.3.2.4 Certifications
17.3.2.5 SWOT Analysis
17.3.3 FMN Plc.
17.3.3.1 Company Overview
17.3.3.2 Product Portfolio
17.3.3.3 Demographic Reach and Achievements
17.3.3.4 Certifications
17.3.3.5 SWOT Analysis
17.3.4 Graceco Ltd
17.3.4.1 Company Overview
17.3.4.2 Product Portfolio
17.3.4.3 Demographic Reach and Achievements
17.3.4.4 Certifications
17.3.4.5 SWOT Analysis
17.3.5 Dogan's Sugar Limited.
17.3.5.1 Company Overview
17.3.5.2 Product Portfolio
17.3.5.3 Demographic Reach and Achievements
17.3.5.4 Certifications
17.3.5.5 SWOT Analysis
17.3.6 Others
18 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Nigeria Refined Sugar Market: Key Industry Highlights, 2018 and 2032
2. Nigeria Refined Sugar Historical Market: Breakup by Product Type (USD Million), 2018-2023
3. Nigeria Refined Sugar Market Forecast: Breakup by Product Type (USD Million), 2024-2032
4. Nigeria Refined Sugar Historical Market: Breakup by Source (USD Million), 2018-2023
5. Nigeria Refined Sugar Market Forecast: Breakup by Source (USD Million), 2024-2032
6. Nigeria Refined Sugar Historical Market: Breakup by End Use (USD Million), 2018-2023
7. Nigeria Refined Sugar Market Forecast: Breakup by End Use (USD Million), 2024-2032
8. Major Exporting Countries by Value
9. Major Importing Countries by Value
10. Major Exporting Countries by Volume
11. Major Importing Countries by Volume
12. Nigeria Refined Sugar Market Structure
In 2023, the Nigeria refined sugar market reached a value of USD 1,835.11 million.
The market is estimated to grow at a CAGR of 5.19% during 2024-2032.
The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach a value of USD 2,619.81 million by 2032.
The factors driving the market growth are favourable government initiatives supporting the production of sugar, expanding food and beverage sector, rising consumption of dairy products and baked goods, and increasing population in Nigeria.
The end uses include food and beverage, pharmaceuticals, dairy, bakery and confectionery, and household, among others.
Sugarcane and sugar beet are the two sources of refined sugar.
White sugar and brown sugar are the two types as per the market report.
The key players in the market include BUA Group, Dangote Industries Limited, FMN Plc, Graceco Limited, and Dogan's Sugar Limited, among others.
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