(MENAFN- GlobeNewsWire - Nasdaq) Key market opportunities in Nigeria's dairy industry include surging local milk supply efforts, rising cheese demand due to Western diets, expanding online channels for dairy retail, and increasing consumption of dairy for nutrition, over product innovation and local partnerships, and leveraging dairy-plant blends.Dublin, Nov. 18, 2025 (GLOBE NEWSWIRE) -- The "Nigeria Dairy Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)" report has been added to ResearchAndMarkets's offering.
The Nigeria dairy market was valued at 1.60 billion Liters in 2024. The industry is expected to grow at a CAGR of 2.80% during the forecast period of 2025-2034 to reach a value of 2.11 billion Liters by 2034. The market growth is driven by the increasing efforts to strengthen the local milk supply chain.
Malnutrition remains one of the most pressing public health challenges in Nigeria, with about one in three children under five years old affected by stunting. In June 2024, UNICEF reported that around 11 million Nigerian children were living in severe food poverty. This highlights an urgent need for nutrient-dense foods such as milk and yoghurt that can address protein-energy malnutrition and micronutrient deficiencies, particularly among vulnerable groups like young children and pregnant women.
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Dairy products are positioned to bridge this nutrition gap due to their high content of quality proteins, calcium, vitamin B12, lysine, and other nutrients crucial for healthy growth and cognitive development. Consequently, leading to a growing consumption of dairy in Nigeria, thereby supporting the Nigeria dairy market.
Recognising the powerful impact of dairy products on nutrition, several large-scale initiatives have been launched to strengthen local milk supply chains and improve livelihoods. For instance, the Advancing Local Dairy Development in Nigeria (ALDDN) Programme, launched in Abuja in January 2020 by the Bill and Melinda Gates Foundation. It was a five-year initiative aimed at transforming the dairy sector by empowering smallholder women farmers and improving nutrition outcomes from 2020 to 2024.
Over its duration, the ALDDN programme targeted 60,000 dairy farmers across 15,000 households in key dairy-producing states, including Adamawa, Jigawa, Kaduna, Kano, and Plateau. It formalised milk supply chains, improved animal health, and trained farmers, working closely with federal and state governments. The move boosted local milk production to over 190,000 litres per day, reducing imports and improving access to fresh dairy products, further supporting Nigeria dairy market expansion.
Backward integration and local sourcing
Local sourcing and backward integration are significantly driving the Nigeria dairy market growth, as it enhances supply chain resilience while reducing dependence on imports. Companies are investing directly in dairy farming to ensure a steady supply of fresh milk. They are also providing local farmers with training and capacity building. Citing an instance, in 2024, Fan Milk PLC and Obasanjo Farms Nigeria Limited announced their partnership to develop a 2,500-hectare dairy farm in Oyo State to boost local milk production. Such initiatives foster economic growth and strengthen Nigeria's dairy industry from farm to processing.
Genetic improvement and breed enhancement to boost milk production
Nigeria is advancing genetic improvement and breed enhancement to double its milk output from 700,000 tonnes to 1.4 million tonnes annually by 2029 with an aim to cut the USD 1.5 billion dairy import bill. As of July 2024, despite owning over 20.9 million cattle, the country relied on imports for about 60% of its 1.6 million tonne annual milk consumption due to low-yield breeds. To counter this, Nigeria imported over 200 high-yield dairy heifers from Denmark to support intensive breeding. Additionally, eight new pasture species were registered for the first time in 48 years, thereby boosting Nigeria dairy market growth.
Government action & national strategy
Robust government initiatives, notably the National Livestock Growth Acceleration Program (NL-GAS) and the National Dairy Policy (2023-2028), are supporting the Nigeria dairy market growth. These initiatives emphasise genetic upgrades, improved animal health, better feed systems, and increased access to finance. As per market reports, availability of policy-driven measures like tax breaks, duty waivers, farmer training, and women and youth empowerment programmes are developing a strong dairy value chain, supporting smallholders, and reducing Nigeria's reliance on milk imports.
Private partnerships & technological advancement
The launch of a demonstration dairy farm at Paikon Kore Grazing Reserve in Abuja in 2024, jointly developed by the federal government and Nestle Nigeria, highlights the growing impact of public-private partnerships on Nigeria dairy market. With over?1.8 billion invested since 2019, the project integrates advanced technologies like semi-automated milking systems, sustainable waste management, and artificial insemination, boosting productivity and farmer income. Daily milk collection surged from 200 liters in 2021 to 6,000 liters. By targeting 30,000 liters per day by 2027, the initiative showcases how strategic collaborations can enhance local capacity, support pastoralists, and ensure long-term food security.
Product innovation and affordable nutrition through dairy-plant blends
Innovative products leveraging dairy-plant blends are gaining significant traction in the Nigeria dairy market. By combining the nutritional strengths of dairy with cost-effective, locally available plant ingredients like soy, manufacturers are delivering essential nutrients such as protein, fibre, calcium, and iron at lower prices. In October 2023, Nestle's launch of a new instant milk powder in Central and West Africa exemplifies this trend. Developed locally at its R&D centre in Cote d'Ivoire, the product blends dairy with soy to ensure accessibility and versatility across various meals. Such innovations support both public health and local agricultural value chains.
Key Highlights of the Nigeria Dairy Market Report:
The growth trajectory of the Nigeria dairy market is charted using historical consumption trends and reliable forecasts through 2034, offering data-driven insights across fluid milk, yoghurt, powdered milk, and other value-added segments. Highlights innovation in product offerings such as dairy-plant blends, fortified milk powders, and functional yoghurts, aligning with consumer demand for health, convenience, and affordability. Provides in-depth profiling of leading domestic and international players, examining strategies in pricing, local sourcing, and portfolio expansion. Identifies emerging regional demand hubs across Northern and Southern Nigeria, driven by urbanisation, population growth, and changing dietary patterns. Offers a data-backed perspective on market size, growth rates, and distribution channel evolution, supporting strategic investments and market entry planning.
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