Ghana: FMCG Market Watch; Ghana's Diary Market

Dairy products are highly nutritious and a healthy protein option for most consumers in Ghana. As such, it is a common Fast-Moving Consumer Good (FMCG) on the shelves and in the stores of most consumer retail outlets. Dairy products are versatile; they are consumed by individuals of all age groups in varied preparatory forms – sometimes as solid food and other times as beverages. Dairy products are made from milk and include foods such as butter, cheese, ice cream, yogurt, and whipped cream among others.

Ghana's dairy market has shown remarkable growth signs in the past decade. The demand for dairy products continues to rise steadily owing to changes in consumer diets that have resulted from greater global integration. There is also a growing middle-income and urban population with better access to various forms of dairy products. Notwithstanding the growing demand, domestic supply is well below the effective market demand, creating a dependence on imports to close the deficit in the market. Greater exposure to foreign media has also made consumers more adventurous and aware of multiple product categories and brands and their different value offerings. Each year, several brands and categories of domestic and imported dairy products are introduced into the market creating a competitive landscape for the dairy sector.

Domestic Production of Dairy Products

The domestic dairy market in Ghana is heavy on the production of milk and cream products. A greater proportion of domestic players produce and distribute primarily milk and cream products, specifically; powdered milk, evaporated milk, fresh milk, and ice cream. Very few players manufacture fresh milk, with cheese and butter products usually produced on a small scale and mostly in informal settings. Locally, cow milk is the main source of fresh milk consumed in the country. About 45,000 tons of fresh milk is produced annually largely by pastoralists such as the Fulanis. Pastoral production of fresh milk is informal and accounts for more than 90% of total fresh milk produced in Ghana. Mostly, middle to high-income earners are cautious about patronizing local fresh milk because of concerns about their hygienic status.

Commercial production of dairy in Ghana falls under three broad categories based on scale and product coverage: large-scale production, medium-scale production, and small-scale production.

• Large-scale producers primarily produce dairy products such as powdered milk, evaporated milk, ice cream, and yogurt products for nationwide delivery and in some cases to other West African markets.
• Medium-scale producers are heavy on dairy products with relatively short shelf life such as yogurt and fresh milk. Their distribution chain usually stretches to a few major cities
• Small-scale producers also produce yogurt and the local cheese (also known as 'wagashi'), distributing at the community levels.

Over the past five years, domestic dairy production has experienced remarkable growth signs. More local entrants have taken an interest in the market by establishing dairy production hubs while existing players continue to expand their production lines by introducing new ranges of dairy products into the market. Presently, despite competition from foreign brands, notable domestic players have capitalized on their understanding of the thriving market and their comparative advantage to gain a fair share of the market. These domestic players together with their brands have become household names, dominating the milk and cream market of the dairy sector. Notwithstanding, there are several foreign brands in the market. The table below provides details on the notable domestic players within the dairy market:

Key Domestic Players in Ghana's Dairy Market

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