A new report by global data and analytics company, NielsenIQ, has revealed that Nigeria is Africa’s fastest-growing Fast-Moving Consumer Goods (FMCG) market, recording a remarkable 54.1 per cent growth in value in 2025 from 34.3 per cent the previous year.
According to the report, the FMCG sector has shown broad-based recovery despite inflationary pressures and currency instability.
The top five FMCG key markets, South Africa, Nigeria, Egypt, Morocco, and Kenya, account for an estimated $42 billion in FMCG value across Africa.
In 2025, South Africa’s FMCG market is valued at approximately $27.5 billion, with a growth value of 7.7 per cent and Nigeria followed closely with an estimated $25 billion FMCG market, with a growth value of 54.1%, the fastest growing on the continent.
Egypt’s is worth about $10.2 billion, growing 23.1 per cent, while Morocco and Kenya posted values of $7.5 billion (7.6%) and $3.3 billion (5.5 per cent), respectively.
The report further showed that despite economic headwinds and declining volumes in 2024, Nigeria’s FMCG market is showing a strong recovery in 2025, with transactions and volumes, which fell by 3.1 per cent and 10.7 per cent respectively, last year, rebounding with 4.8 per cent and 5.4 per cent growth.
“Nigerian consumers remain resilient, with price cushioning driving strong consumption and value growth,” the report stated.
This rebound reflects a growing adaptation by consumers to inflationary conditions, where spending continues even amid reduced purchasing power.
According to the report, these top 10 FMCG categories, beer; soft drinks; spirits; malted soft drink; energy drinks; mineral water; detergent; powdered milk; noodles and biscuits, collectively represent 64 per cent of total FMCG sales in Nigeria.
The report listed top 10 fastest-growing FMCG categories in 2025 as contraceptive – 95.6%; flavoured milk – 84.4%; biscuits – 72.2%; mainstream spirits – 71.1%; energy drink – 68.5%; drinking yoghurt – 65.2%; soft drink – 62.9%; coffee – 59.8%; beer – 59.3%; and powdered beverage – 58.7%.
According to the report, wallet shifts continue to favour spending more on life essentials. However, consumers intend to cut back on non-essential items; the proportion of those who will do so is likely to be less in 2026.
It stated that between 2024 and 2025, the biggest drop was is in clothing and fashion, where those reducing spending fell from 45% in 2024 to 33%. People are holding on to old clothes longer and shopping less often.
Home upgrades are also on hold, with spending on home décor and improvements dropping from 42% to 30%, as families are likely focusing on repairs and necessities rather than style.
Dining out also reduced, eating at restaurants fell from 45% to 40%, and food delivery fell from 39% to 33%. More families now cook at home to save money. Even snacks and sweets are being cut back, falling from 42% to 31%. Nigerians are being more careful with small, impulse buys as every naira counts.
While lifestyle spending drops, the cost of essentials continues to rise between 2024 and 2025. Education tops the list, with 72% of Nigerians reporting higher expenses in 2025, up from 69% in 2024. School fees, textbooks, and related costs are climbing, but parents are determined to keep their children in school. Education remains a non-negotiable investment, even amid financial hardship.
Transport costs climbed from 63% to 66%, reflecting rising fuel prices and public transport fares. Utilities followed the same trend, moving from 58% to 62%, with higher bills for electricity.
Groceries and household items costs stayed high, with 56–57% of consumers spending more as prices of staples like rice and beans. Childcare expenses also ticked up slightly from 54% in 2024 to 56% in 2025.
Some spending areas stayed about the same between 2024 and 2025. Fresh produce remained steady at 32%–33%, while home essentials like soap and cleaning items rose from 30% to 39%. Beverages went up from 30% to 37%, and telecommunication spending dropped slightly from 31% to 24%.
According to the report, projections in the sector is to expand from N12.46 trillion in 2025 to N18.13 trillion by 2027 under the conservative growth scenario. Under a more aggressive scenario, FMCG sales could reach N23.13 trillion by 2027.
The report shows consistent expansion over the forecast period, with the strongest momentum expected between 2026 and 2027, when the conservative estimate climbs from N15.08 trillion to N18.13 trillion, while the aggressive projection jumps from N17.08 trillion to N23.13 trillion.
