Nigeria: Margarine And Shortening Market 2024

Margarine And Shortening Market Size in Nigeria

In 2022, the Nigerien margarine and shortening market increased by 2.4% to $X, rising for the sixth year in a row after two years of decline. Overall, consumption saw a strong expansion. Margarine and shortening consumption peaked in 2022 and is likely to see gradual growth in the near future.

Margarine And Shortening Exports

Exports from Nigeria

In 2022, after two years of growth, there was decline in overseas shipments of margarine and shortening, when their volume decreased by -0.1% to X tons. Over the period under review, exports, however, saw a significant expansion. The pace of growth appeared the most rapid in 2017 when exports increased by 234% against the previous year. The exports peaked at X tons in 2021, and then contracted modestly in the following year.

In value terms, margarine and shortening exports expanded rapidly to $X in 2022. In general, exports, however, enjoyed a significant expansion. The growth pace was the most rapid in 2020 with an increase of 260% against the previous year. As a result, the exports attained the peak of $X. From 2021 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

The United States (X tons) was the main destination for margarine and shortening exports from Nigeria, with a 53% share of total exports. Moreover, margarine and shortening exports to the United States exceeded the volume sent to the second major destination, Benin (X tons), twofold. The third position in this ranking was taken by the Netherlands (X tons), with a 16% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to the United States totaled +51.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: Benin (+159.3% per year) and the Netherlands (+52.8% per year).

In value terms, the United States ($X) remains the key foreign market for margarine and shortening exports from Nigeria, comprising 59% of total exports. The second position in the ranking was taken by the Netherlands ($X), with an 18% share of total exports. It was followed by Benin, with a 2% share.

From 2012 to 2022, the average annual rate of growth in terms of value to the United States totaled +42.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: the Netherlands (+41.1% per year) and Benin (+118.2% per year).

Export Prices by Country

The average margarine and shortening export price stood at $X per ton in 2022, growing by 13% against the previous year. Over the period under review, the export price, however, continues to indicate a perceptible slump. The most prominent rate of growth was recorded in 2016 when the average export price increased by 48%. The export price peaked at $X per ton in 2013; however, from 2014 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was Ghana ($X per ton), while the average price for exports to Benin ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Burkina Faso (+44.6%), while the prices for the other major destinations experienced a decline.

Margarine And Shortening Imports

Imports into Nigeria

For the third consecutive year, Nigeria recorded growth in supplies from abroad of margarine and shortening, which increased by 4.9% to X tons in 2022. Overall, imports continue to indicate a resilient expansion. The most prominent rate of growth was recorded in 2021 when imports increased by 283% against the previous year. Over the period under review, imports hit record highs in 2022 and are expected to retain growth in the immediate term.

In value terms, margarine and shortening imports shrank to $X in 2022. Over the period under review, imports saw a remarkable increase. The most prominent rate of growth was recorded in 2021 with an increase of 359%. As a result, imports attained the peak of $X, and then reduced in the following year.

Imports by Country

In 2022, Indonesia (X tons) constituted the largest margarine and shortening supplier to Nigeria, with a 65% share of total imports. Moreover, margarine and shortening imports from Indonesia exceeded the figures recorded by the second-largest supplier, Denmark (X tons), fivefold. The United Arab Emirates (X tons) ranked third in terms of total imports with a 7.9% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Indonesia stood at +53.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Denmark (+109.9% per year) and the United Arab Emirates (+103.0% per year).

In value terms, Denmark ($X), Indonesia ($X) and the United Arab Emirates ($X) appeared to be the largest margarine and shortening suppliers to Nigeria, together comprising 79% of total imports.

Denmark, with a CAGR of +92.1%, saw the highest rates of growth with regard to the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average margarine and shortening import price stood at $X per ton in 2022, dropping by -9.9% against the previous year. In general, the import price recorded a pronounced decline. The pace of growth was the most pronounced in 2014 when the average import price increased by 51%. The import price peaked at $X per ton in 2016; however, from 2017 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Denmark ($X per ton), while the price for Australia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ghana (+0.3%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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