Consumer spending on dairy products is expected to become the fastest growing in the food and non-alcoholic beverage category, in 2022, Fitch Solutions, has projected.
This will be followed by bread, rice and cereals.
“We forecast a 13.2% five-year CAGR within the Ghanaian food spending category over the 2022 to 2026 period, with dairy spending forecasting to provide the highest growth”, it said.
“While, we note that dairy spending is growing from a low base, with dairy accounting for 3.7% of total food spending, the growth in spending is faster than categories such as fresh vegetables and oils and fats, both of which have a similar share in total food spending”, it added.
Fitch Solutions further noted that Ghanaians spend predominantly on fish and fish products as well as bread, rice and cereals, which collectively account for around 70% of total food spending.
But the growing expenditure in dairy products will not change over the medium-term.
It attributes the trend to both ‘westernisation’ and greater formalisation of the Ghanaian food sector. Meanwhile, total household spending for this year is estimated at a little above ¢329 billion, and will grow by an annual average of 13.4% over the next five years.
This will bring total household spending to ¢617.5 billion, approximately $69.2 billion by 2026.
It will be a significant increase from ¢40.2 billion (US$22.0 billion) in 2012
This Fitch Solutions says is good for both domestic and international retailers operating in Ghana, particularly those who specialise in household essentials.
Yoghurts become popular amongst consumers
The report also revelaed that drinkable yoghurts have grown significantly in popularity amongst Ghanaian consumers and are often marketed as a high protein, low sugar, on the go drink. Companies such as FanMilk and VitaMilk are said to have far deeper offerings in the drinkable yoghurt and ice-cream categories compared to traditional dairy products such as milk and butter.
“We believe the Ghanaian dairy, and particularly yoghurt industry will continue to see continued expansion and greater demand by consumers.”
Latest Stories
-
Koda should have visited the pastor to avert the prophecy – Ajagurajah
5 mins -
Emotional support alligator taken and released in swamp
12 mins -
A mate is a mate, Bawumia can’t be in the driver’s seat – NDC Communicator
14 mins -
Over 400 million Google accounts have used passkeys, but our passwordless future remains elusive
17 mins -
Kwame Nkrumah Memorial Park surpasses Aburi Gardens as most visited site in 2023 – GTA
19 mins -
Third IFC EDGE Students Design Competition opens in Ghana
27 mins -
Baidoo: Disgraceful maltreatment of the Black Princesses must stop
37 mins -
Telecel Ghana commits to community collaboration during Western Region tour
46 mins -
Chieftaincy Ministry shouldn’t have written the letter – Atuguba on Akufo-Addo-chiefs saga
50 mins -
Joe Vibe strikes a ‘Pose’ with new song
54 mins -
Works begin on inner-city roads in Ho
1 hour -
GJA to commemorate World Press Freedom Day in Koforidua
1 hour -
West Ham ban director Tim Steidten from dressing room as search continues for new manager
1 hour -
I haven’t been treated well by the NPP but I remain loyal – Former NPP MP
2 hours -
IGP petitioned to probe Kwadaso MP over ‘white envelope’ incident
2 hours