The taste buds of 37 million Nigerian households are fuelling the growth of the packaged seasonings market estimated at N100 billion, with local and multinational firms scrambling for market share.
Seasonings refer to salt, herbs and spices added to enhance the flavour and taste of food.
“In addition to ongoing urbanisation, Nigeria is witnessing a change in eating habits, with consumers shifting to less traditional foods,” Euromonitor International said in its November 2018 report on ‘Sauces, Dressings and Condiments in Nigeria’.
Euromonitor said an increasing urban population, which is time-poor due to the ongoing growth of a formal working culture, would continue to boost demand for packaged seasonings products which offer greater convenience. Unilever has emerged as one of strongest market leaders in the market, offering different varieties of Knorr stock cubes and Royco. Analysts say its products are gaining traction among the middle-class.
But the Fast-Moving Consumer Goods firm’s products are competing with Nestlé Nigeria’s Maggi brand, which is popular among various classes of households.
Nestle sells 80 million Maggi cubes daily, according to a recent presentation by the firm.
Apart from different brands of Gino seasonings, Dangote, through its subsidiary NASCON, is also a major player. The company launched classic seasonings cubes in Kano in 2018.
Fatima Aliko Dangote, executive director, commercial, said the seasoning cubes and stew mix were created with a special blend of herb and spices to give Nigerians a unique taste and aroma.
Nestle, which does not break out its numbers from Maggi sales, nevertheless reported N168 billion as revenues from its food segment in 2018, which includes Maggi, Cerelac, Nan and Golden Morn. Seasoning revenue for NASCON was up 21 percent in 2018 to N942 million. It is estimated that NASCON controls 1 percent of the seasonings market in Nigeria, giving a total estimated market size of about N100 billion.
Unilever reported N44.4 billion as revenue for its food segment in 2018, which includes seasoning.
In 2017, Nestlé launched ‘Maggi Naija Pot’ – a new seasoning cube developed in Nigeria based on the strong understanding of local cuisine. This was followed by the launch of ‘Maggi Signature’.
The major strategy used by makers of seasonings in Nigeria is to tailor their products to local tastes and increase appeal to an increasingly health-conscious population.
“The new product includes a commitment to use familiar and common ingredients, which is another step towards fulfilling our ambitions to help individuals and families live healthier, happier lives,” Mauricio Alarcon, managing director and chief executive officer of Nestle Nigeria, said at the launch of Maggi Signature earlier this year.
If you think that West African Seasoning Company Limited’s Ajonomoto is down and out, you are wrong. The brand’s perception is poor, as admitted by its managing director, Junichi Niki, in 2018, but it is popular among local food vendors.
“In spite of the bottlenecks hindering the manufacturing industry in Nigeria, Ajinomoto has continued to surpass the expectation of shareholders, selling over 250 million sachets every month,” Niki said while unveiling Ajinomoto’s brand ambassadors in Lagos last year. The era of traditional seasonings such as ‘Iru’, ‘Okpei’ and ‘Dawadawa’ is gradually phasing out in homes of the upwardly mobile and predominantly young population who live in cities as they increasingly prefer packaged seasonings with better aroma. The growth of fast-food joints is helping the packaged seasonings market, fuelling innovation in the industry.
Seye Johnson, an independent retail market analyst, told BusinessDay that constant changes in consumer tastes are driving the seasonings market, with new entrants innovating affordable products that come in economy packs.
Olam’s spices such as chillies, onions and garlic have also continued to perform well owing to efficient distribution system.
Euromonitor said in its report that new entrants such as Sosaco Nigeria and SyvaFrank International have performed well in fast growing categories such as tomato pastes and purées, herbs and spices owing to aggressive distribution strategies and the offer of a wide range of pack sizes, particularly small ones. AACE has emerged as a market disruptor with its Jollof Seasoning, Fried Rice Seasoning, Curry Powder, Pepper Soup Spice Mix, Suya Mix, among others.
“Taste and aroma are two major determinants of what consumers buy,” Ifeoma Ike, banker and mother, told BusinessDay. Onga by Promasidor is also highly demanded in Nigeria, with the brand popular in various parts of the country.
More than half of Nigeria’s 200 million people are under 18 and the majority live in urban areas. The middle-income families cook at least twice with these seasonings each week, with the poor using them at least once.
“A food without seasoning is wasted because nobody will eat it. In addition, cooking and eating is a daily activity,” said Johnson, who was quoted earlier.
Odinaka Anudu & Gbemi Faminu
