Easing inflation, demand surge spark Nigeria’s FMCG industry’s recovery

• Grows by 12%, as hardship halves

Nigeria’s Fast Moving Consumer Goods (FMCG) industry is witnessing a rebound in activities supported by a resurgent economy, easing inflation and pricing strategies, Business Hallmark findings have revealed.

The recovery is coming after a long period of poor performance by producers who are now seeing improvement in consumption trends across rural and urban areas as the Nigerian economy gradually bounces back to life.

According to a report by NielsenIQ, a global marketing research firm with headquarters in Chicago, the United States, the Nigerian FMCG market is growing by about 12 per cent, with consumption showing modest but steady gains.

“This is a sign that Nigerian consumers remain confident enough to spend despite tightening disposable incomes”, the company said in the report.

Findings showed that impulse categories like drinks, beverages and food lead the chart. For instance, beverages and food dominate the top-performing FMCG categories, with beverages accounting for six of the top ten by value.

Pricing Factor 

One of the factors driving the rebound of the beverage segment is the noticeable drop in price of many products.

Checks revealed that a 60cl bottle of Coca Cola, a popular brand in Nigeria, which used to sell for N400 to N450 in stores, now goes for between N360 and N385, depending on the store and location.

As a result, many Nigerians, especially party organizers, who abandoned the brand for cheaper ones like Planet and Americana are now trooping back to it.

BH observed that other companies have brought down the prices of their drinks to between N300 and N380.

In the same vein, prices of malt drinks have drastically fallen in the market, prompting a surge in demand for the products.

For instance, a 33cl bottle of Maltina drink, which sold for as high as N700 in 2024, now goes for N500 at most stores.

Specifically, while a 33cl Maltina bottle (pet) currently goes for N460, the can bottle goes for N500, a marked reduction in price of about N200.

A massive drop in price is also noted in the food category. A 1kg Chi whole chicken is now  N4,000 in most stores in Lagos, against the N5,000 to N5,500 price tags in December 2024.

NielsenIQ, in its Nigerian Market Overview Report, said the FMCG market, driven by renewed consumer confidence and steady spending despite squeezed disposable incomes,  expanded by about 12 per cent.

According to NielsenIQ’s Associate Director, Joyce Nwachukwu, Nigeria’s FMCG value growth has recovered from double-digit negative territory to around **5.4 per cent**, supported by improved price stability and a gradual return of consumer optimism.

“Consumers are now confident to spend, even with limited income. We are seeing opportunities for them to express themselves through employment and purchase decisions. The land is still green.

“Last year, prices changed almost daily, you could leave a shop and return to find new price tags.

“This year, we’ve seen a soft landing. Stable prices have boosted consumer confidence and encouraged product trials,” she explained.

Impacts Food

NielsenIQ identified the food and beverage categories as the major drivers of the ongoing recovery.

“Beverages, such as beer, spirits, and soft drinks are experiencing solid volume and value growth, while the food segment has bounced back from a 10 per cent decline last year to post positive trends in both consumption and value.

“We’re seeing more rational consumption, people are prioritizing what truly matters, yet value continues to grow,” the NielsenIQ director stated.

NielsenIQ projects that FMCG sector will experience double-digit growth through 2025, with long-term forecasts pointing to sustained expansion until 2027.

According to the firm’s conservative estimates,  total FMCG growth will likely reach 40 per cent by the end of 2025 with stronger trading activities.

“Nigeria remains a strong investment destination. Consumers are resilient and responsive, when manufacturers innovate, they respond positively. The future is green,” she added.

In his own submission, the Senior Manager,  Retail Measurement Services at NielsenIQ, Oluwatosin Onayemi, said that the number of Nigerians, who feel financially worse off in 2024 has crashed from 75 per cent in 2024 to 36 per cent in 2025.

This, he said, signposts  a significantly improved financial outlook.

With the continued surge in demands, experts are projecting that the FMCG industry, especially the food and beverage categories, will grow year-on-year in 2026 and 2027.

BH checks revealed that the rebound in production activities is also highlighted by a marked rise in Nigeria’s Purchasing Managers Index (PMI).

In September 2O25, Nigeria’s manufacturing  purchasing managers index rose to 54.1 from 49.10 points in August of the same year.

According to the Central Bank of Nigeria (CBN), Manufacturing PMI in Nigeria averaged 50.53 points in 2024 from a record low of 38.40 points in February of 2023.

The rebound is led by Services and Agriculture, which experienced massive expansion, marking sustained growth for multiple months across most sub-sectors surveyed.

The improvement in manufacturing PMI, financial experts say, suggest a stronger and broad-based growth across the nation’s private sector.

Renewed Investors’ Interest 

Meanwhile, the easing inflation and surge in demand are driving investors renewed confidence in fast-moving consumer goods companies.

BH check of stock prices at the close of trading on Friday, show that five companies recorded nearly 150 per cent gain year to date (YTD).

The five major FMCG stocks are Dangote Sugar Refinery, Cadbury Nigeria, Nestlé Nigeria, Nigeria Breweries, and Champion Breweries.

The companies have collectively posted year-to-date (YTD) gains of over 150 per cent with a combined market capitalisation of approximately N5 trillion.

For instance, Dangote Sugar Refinery closed trading at N64.30 on Friday, October 24, 2025 after a lacklustre performance last year. It had started the year with a share price of N32.50.

In the same vein, Cadbury Nigeria closed trading at N72.50, compared to N21.50 on January 2, 2025; Nestlé Nigeria ended trading at N1,915, compared to N875 per share in January; Nigerian Breweries closed at N74.50 per share, compared to N32 at the beginning of the year, while the share price of the fifth firm, Champion Breweries, closed at N16.60 kobo on Friday, October 24, 2025, from a low of N3.81 at the beginning of 2025.

Meanwhile, Nigeria has emerged as Africa’s fastest-growing Fast-Moving Consumer Goods (FMCG) market, recording a remarkable 54.1% growth in value in 2025 from 34.3% in 2024.

According to the report by NielsenIQ, Nigeria has an estimated $25 billion FMCG market, with a growth value of 54.1%, the fastest growing on the African continent.

The report named contraceptive – 95.6%; flavoured milk – 84.4%; biscuits – 72.2%; mainstream spirits – 71.1%; energy drink – 68.5%; drinking yoghurt – 65.2%, soft drink – 62.9%; coffee – 59.8%; Beer – 59.3% and powdered beverage – 58.7% as the top 10 fastest-growing FMCG categories in 2025.

“Nigerian consumers remain resilient, with price cushioning driving strong consumption and value growth”, the NielsenIQ report said.