Custard Production in Nigeria; The Feasibility Report.

Custard is a widely consumed food product in Nigeria, typically sold in powdered form and prepared by mixing with hot milk or water to produce a smooth, thick, and creamy meal or dessert. Custard powder is primarily made from corn starch blended with flavoring agents (such as vanilla), food coloring, sugar, and sometimes vitamins or minerals for fortification. When cooked with milk or water, the powder gelatinizes to form a semi-solid custard that is commonly eaten as a breakfast meal or dessert.

In Nigeria, custard has become a staple convenience food across households due to its affordability, ease of preparation, and nutritional value as a source of carbohydrates and energy. It is frequently consumed with complementary foods such as bread, plantain, beans cakes (akara), biscuits, or fruits. The product appeals to a broad consumer base including children, students, working adults, and elderly consumers, making it a common breakfast or light meal option in urban and rural areas.

Custard production involves blending refined corn starch with food-grade additives such as vanilla flavor, colorants, stabilizers, and micronutrient premixes. The blended product is then sieved, packaged, and distributed in various retail pack sizes such as sachets, small retail packs, and family-size containers. Because custard powder has a long shelf life and requires simple preparation, it fits well into Nigeria’s fast-moving consumer goods (FMCG) category and enjoys consistent demand in supermarkets, open markets, and neighborhood retail stores.

Market Size of Custard in Nigeria

Nigeria represents one of the largest markets for custard powder in Africa due to its large population and strong demand for affordable breakfast foods. Research indicates that the annual national demand for custard powder exceeds 450,000 tonnes, reflecting the product’s wide consumption across households and food service outlets.

Industry analysis also suggests that the Nigerian custard powder market was valued at approximately USD 5.11 million in 2024 and is projected to reach about USD 7.45 million by 2033, representing a compound annual growth rate (CAGR) of around 4.3% during the forecast period.

Globally, the custard powder market is experiencing steady growth driven by the increasing demand for convenience foods and instant desserts. The global market size was estimated at about USD 1.2 billion in 2024 and is expected to reach roughly USD 2.5 billion by 2034, indicating strong long-term demand for custard products worldwide.

Demand Drivers for Custard in Nigeria

Several factors contribute to the strong and sustained demand for custard in Nigeria:

1. Large Population and Household Consumption: Nigeria’s population of over 200 million people creates a vast consumer base for affordable staple foods such as custard. The product is consumed across all socioeconomic classes.

2. Affordable and Convenient Breakfast Option: Custard is quick and easy to prepare, making it a preferred meal for busy households and working families. The product requires minimal cooking time and basic ingredients.

3. Versatility in Consumption: Custard can be served as breakfast, dessert, or snack and can be combined with a variety of foods such as bread, fruits, cakes, and pastries, expanding its usage in both homes and food service establishments.

4. Long Shelf Life and Easy Storage: The powdered form allows the product to be stored for extended periods without spoilage, making it suitable for large-scale retail distribution and export opportunities.

5. Expanding Food Processing Industry: Growth in Nigeria’s food processing and packaged food sector has increased the availability of custard brands and product variations, including fortified and flavored custard products.

Custard production represents a viable agro-processing opportunity in Nigeria due to strong domestic demand, relatively simple production processes, and the availability of key raw materials such as corn starch.

The large population, increasing preference for convenient breakfast foods, and expanding retail distribution channels continue to drive growth in the custard market. With annual national demand estimated at hundreds of thousands of tons and steady market expansion projected over the coming decade, custard manufacturing presents a promising investment opportunity within Nigeria’s fast-moving consumer goods sector.

Table of Contents

Table of Contents: EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Critical Success Factor of the Business 1.4Current Status of Business 1.5 Description of the Business Industry 1.6 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of the Product 2.2 Product Packaging and Delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating Activities and Expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the Business 4.2 Profile of the Promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of Salary Schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start Up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash flow Analysis 5.8 Viability Analysis 6.0 Business Risks, Mitigation Strategies and SWOT Analysis 6.1 Business Risks and Mitigation Strategies 6.2 SWOT Analysis

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