Nigeria’s FMCG Market Records 15% Value Growth In 2026 — NIQ

Nigeria’s fast-moving consumer goods (FMCG) market recorded 15 per cent value growth in 2026, driven by a 4.8 per cent increase in sales volume and 7.1 per cent growth in transactions, according to consumer intelligence firm NielsenIQ (NIQ).

The growth suggests that market expansion is increasingly being supported by improved consumer demand rather than price increases alone, despite persistent pressure on household purchasing power.

NIQ disclosed this at its fourth annual Nigeria C-Suite Breakfast Conference, held recently in Lagos, where business executives, marketers and industry decision-makers examined changing consumer behaviour, prevailing market realities and strategies for sustaining business growth.

Speaking at the conference, themed ‘Leading the Next Wave’, NIQ’s Commercial Director for West Africa, Joyce Nwachukwu, described the findings as evidence of an emerging shift towards more sustainable, demand-driven growth. “Leading the next wave doesn’t just happen by chance; it’s a gradual process,” Nwachukwu said.

Despite the market expansion, however, consumer sentiment remains largely cautious, with the proportion of Nigerians who considered themselves financially better off than they were a year earlier declining to 39 per cent from 41 per cent in 2025.

In contrast, 36.1 per cent of consumers said their financial situation had worsened, compared with 35.8 per cent in the previous year, while 74 per cent identified the rising cost of living as their biggest challenge.

The NIQ report further showed that 62 per cent of consumers expressed concern about the economic slowdown, down from 66 per cent in 2025. However, concern over rising fuel prices increased significantly, with 58 per cent identifying it as a major challenge, compared with 29 per cent a year earlier.

Providing further insight into the economic pressures confronting consumers and businesses, the Deputy Vice-Chancellor (Academic) of Pan-Atlantic University, Prof. Uchenna Uzo, said fuel prices had risen by approximately 450 per cent, while consumer purchasing power had declined by more than 25 per cent over the past three years.

Uzo also highlighted the importance of Nigeria’s informal economy to commerce and consumer access, noting that approximately 70 per cent of informal business owners depended on borrowed capital to finance their operations.

He urged businesses to reassess their growth strategies and deepen collaboration across their value chains to remain competitive amid prevailing economic uncertainties.

“We either innovate or stay and face the consequences,” he said.

On changing consumer preferences, NIQ reported that mainstream brands accounted for 62 per cent of FMCG value sales, while the rate of brand switching declined from 68 per cent in 2024 to 49 per cent in 2026.

The development suggests that consumers are becoming more deliberate in their purchasing decisions, placing greater emphasis on consistent value while weighing affordability against product quality, convenience, functionality and brand trust.

NIQ’s Senior Manager, Retail Measurement Services for West Africa, Oluwatosin Onayemi, said changing shopping habits and the performance of different product categories were opening up fresh growth opportunities for businesses.

He disclosed that the biscuits category recorded 49.6 per cent value growth, underscoring the potential for products that respond effectively to evolving consumer preferences.

Onayemi further revealed that 31 per cent of Nigerians now shop online, with Generation Z accounting for the leading share of online purchasing activity.

He added that millennials were expected to emerge as the country’s highest-spending generation in the coming years.

However, he maintained that traditional trade remained the backbone of Nigeria’s retail market despite the growing influence of digital commerce, highlighting the need for businesses to develop integrated strategies that accommodate both physical and online shopping channels.

Also speaking, NIQ’s Senior Manager, Business Development for West Africa, David Emeh, stressed the importance of precise market intelligence in helping businesses identify growth opportunities across geographical regions, cities, retail channels and consumer segments.

According to him, companies that rely on uniform business strategies risk overlooking opportunities presented by differences in consumer behaviour and market conditions. “Using a one-size-fits-all strategy will leave opportunities on the table,” Emeh said.

He added, “The question is no longer about data. The question is how effectively organisations use it.”

Emeh demonstrated NIQ Optiq, the company’s artificial intelligence-enabled intelligence platform, explaining how businesses could leverage the technology to identify emerging market opportunities, improve strategic decisions and respond more quickly to changing market conditions.

Earlier, NIQ’s Managing Director for East and West Africa, Faith Wanderi, said businesses needed to anticipate market shifts and translate emerging opportunities into sustainable competitive advantages.

“As markets continue to evolve, success will increasingly depend on an organisation’s ability to anticipate shifts, act on insights, and transform emerging opportunities into sustained competitive advantage,” Wanderi said.

The conference concluded with an executive panel discussion involving business and marketing leaders from AAVA Brands, PZ Cussons Nigeria Plc, AI Literacy Academy, the Lagos State Internal Revenue Service and Wilmar International.

The panel examined the importance of understanding consumer behaviour, developing products that address changing needs and deploying artificial intelligence to improve business intelligence and decision-making.

NIQ said businesses that combine local market knowledge, innovation and data-driven execution would be better positioned to sustain growth as consumer priorities, shopping habits and purchasing patterns continue to evolve.

Isaac Asabor is a Reporter with Independent Newspapers Limited. He has ample years of experience in reportorial and editorial duties. An alumni of both University of Lagos and Olabisi Onabanjo University, and presently covers Consumer Affairs beat, edits Niger-Delta and Marketing/Brand Pages that are published on Mondays and Wednesdays,, on Independent Newspaper. He is also a member of the Nigerian Institute Of Public Relations, NIPR.

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