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.”