• We have over nine years of expertise in market research.
  • foraminiferaltd@gmail.com
  • (+234)-1-29 52 413

How to Establish a Thriving Cheese Production Business in Nigeria; The Future of Dairy

  • Home / How to Establish a Thriving Cheese Production Business in Nigeria; The Future of Dairy

How to Establish a Thriving Cheese Production Business in Nigeria; The Future of Dairy

  • by Business Plans Nigeria |
  • Comments off

Cheese, a beloved dairy product known for its rich taste and versatility, has become a staple in cuisines worldwide. From pizzas and sandwiches to gourmet dishes, cheese is a key ingredient in both traditional and modern culinary practices. With the global cheese market expanding rapidly and the growing interest in diverse dairy products in Nigeria, establishing a thriving cheese production business presents an exciting opportunity for entrepreneurs.

Cheese is a dairy product derived from the coagulation of milk proteins, primarily casein. The process involves curdling milk, separating the curds from the whey, and aging the curds to produce cheese.

Cheese comes in a wide range of textures, flavors, and forms, influenced by factors such as the type of milk used, processing techniques, and aging duration. Apart from its delicious taste, cheese is valued for its high protein and calcium content, making it a nutritious addition to diets.

The history of cheese dates back thousands of years, with origins believed to lie in ancient Mesopotamia or the Middle East. It is said that cheese was discovered accidentally when milk stored in animal stomachs coagulated due to the presence of natural enzymes.

Over time, cheese production techniques evolved, spreading to Europe, where it became a cultural and culinary cornerstone. Today, cheese is produced worldwide, with each region offering its unique varieties and methods of preparation.

Cheese can be classified into several types based on texture, flavor, production method, and aging process. Common types include:

Cheddar: A hard, sharp-tasting cheese popular for sandwiches and cooking.
Mozzarella: A soft cheese known for its elasticity, often used in pizzas and salads.
Parmesan: A hard, aged cheese with a nutty flavor, commonly grated over pasta dishes.
Feta: A crumbly cheese with a tangy taste, traditionally made from sheep or goat milk.
Processed Cheese: Made by blending natural cheeses with emulsifiers, resulting in a smooth texture and longer shelf life.

The global cheese market was valued at USD 93.27 billion in 2024 and is projected to reach USD 153.03 billion by 2033, growing at a CAGR of 5.08% from 2025 to 2033. Europe leads the market, accounting for over 40.6% of global cheese consumption in 2024.

Factors driving this growth include the rising demand for convenience foods, the increasing popularity of ready-to-eat (RTE) meals, and the growing health-conscious consumer base seeking protein-rich diets. Innovations such as plant-based and organic cheeses are further expanding the market’s reach.

Cheese Market Segmentation

By Source:

    Animal-Based: Cattle, sheep, goat, camel.
    Plant-Based: Soya, almond, cashew, and others.

By Type:

    Natural.
    Processed.

By Product Type:

    Cheddar, mozzarella, parmesan, feta, and others.

By Form:

    Block (hard and soft).
    Spreadable.
    Others.

Cheese production in Nigeria is relatively nascent but steadily growing. Traditionally, local cheeses such as wara (a soft cheese made from cow milk) have been part of Nigerian diets, especially in the northern regions.

However, large-scale cheese production for commercial purposes is still limited. With increased urbanization, westernization of diets, and rising consumer demand for dairy-based products, there is a growing interest in establishing modern cheese production facilities in Nigeria.

The primary raw material for cheese production is milk, which can be sourced from cows, goats, sheep, or camels. Other essential materials include:

Rennet: An enzyme used to coagulate milk.
Salt: For flavor and preservation.
Cultures: To develop specific flavors and textures.
Additives: Depending on the type of cheese, ingredients like herbs, spices, or plant-based alternatives may be used.

Nigeria’s agricultural sector provides access to fresh milk from local livestock, while rennet, cultures, and other additives can be imported or locally manufactured as the industry grows.

The cheese industry in Nigeria is at a developmental stage. While local producers focus on traditional cheeses such as wara and nono (fermented milk), there is immense potential for expanding into the production of western-style cheeses like cheddar, mozzarella, and feta. The Nigerian government’s push for agricultural development, coupled with increased consumer interest in dairy products, creates an enabling environment for cheese entrepreneurs.

Currently, the Nigerian cheese market is dominated by small-scale producers and artisanal cheesemakers. Some farmers and cooperatives in northern Nigeria produce fresh cheeses for local consumption. However, large-scale producers are rare, presenting an untapped opportunity for investors to establish modern cheese production facilities and cater to both local and export markets.

The demand for cheese in Nigeria is rising, driven by urbanization, a growing middle class, and exposure to international cuisines. Restaurants, fast food chains, and bakeries are major consumers of cheese, using it as an ingredient in popular dishes like pizzas, burgers, and pastries. Additionally, the retail market for packaged cheese products is expanding, fueled by increased interest in home cooking and convenience foods.

Steps to Establish a Cheese Production Business in Nigeria

Conduct Market Research: Understand consumer preferences, market demand, and potential competitors.
Develop a Business Plan: Outline your objectives, production methods, target market, and financial projections.
Secure Funding: Source capital through personal savings, bank loans, or grants.
Set Up a Facility: Build or lease a facility equipped with milk processing and cheese-making equipment.
Source Raw Materials: Establish reliable suppliers for fresh milk and other ingredients.
Hire Skilled Labor: Employ trained staff for production, packaging, and marketing.
Ensure Quality Standards: Adhere to food safety regulations and invest in quality control measures.
Market Your Products: Promote your cheese through retailers, restaurants, and online platforms.

Challenges in Cheese Production in Nigeria

Limited Milk Supply: Inconsistent milk production due to inadequate dairy farming practices can hinder cheese production.
High Production Costs: Importing equipment and additives can increase operational expenses.
Lack of Skilled Labor: Few Nigerians are trained in modern cheese-making techniques.
Market Competition: Imported cheese brands dominate the market, posing challenges for local producers.
Storage and Distribution: Cheese requires cold storage and efficient distribution networks to maintain quality.

Despite challenges, the prospects for cheese production in Nigeria are promising. The government’s focus on agriculture and food processing, coupled with incentives for dairy farming, provides a supportive environment for entrepreneurs. Additionally, the growing consumer preference for locally produced goods and the rising popularity of western-style diets create significant market opportunities. Innovations such as plant-based cheese production can further diversify product offerings and cater to health-conscious consumers.

Establishing a cheese production business in Nigeria offers immense potential for profitability and growth. By leveraging the country’s agricultural resources, understanding market trends, and adopting modern production techniques, entrepreneurs can tap into the expanding demand for dairy products.

While challenges such as limited milk supply and high production costs exist, they can be addressed through strategic planning, government support, and industry collaboration. With the right approach, Nigeria’s cheese industry can thrive, contributing to food security, employment, and economic development.

If you require a bankable feasibility report on cheese production in Nigeria, please contact us using any of the means below.

Anaekwe Everistus Nnamdi

Founder & Market Research Analyst
Foraminifera Market Research Limited

foraminiferaltd@gmail.com or +2348033782777 (call and whatsapp)

Investment Opportunities in Nigeria | Business Opportunities in Nigeria | Profitable Industries in Nigeria | Investment Landscape in Nigeria | SME Opportunities in Nigeria | Foreign Direct Investment in Nigeria | Emerging Markets in Nigeria |

About The Author - Business Plans Nigeria

Business Plans Nigeria

businessplansinnigeria.ng is a one stop destination for investment and business opportunity seekers in Nigeria. businessplansinnigeria.ng is privately owned and operated by Foraminifera Market Research Limited. We have over nine (9) years experience in conducting and preparing market research report (feasibility reports and business plans) in Nigeria.