How To Start Biscuit Or Cookie Production Business In Nigeria Or Africa

How To Start A Lucrative Biscuit Or Cookie Production Business In Nigeria Or Africa: The Complete Guide | Image: Pixabay

Biscuit or cookies are one of the most commonly consumed products of the wheat-based bakery. Biscuit is one of the most eaten snacks around the world owing to its cheapness, ease of preparation and accessibility. Biscuits are easily digestible and highly nutritious, and they have become a favourite among people of all class and age. Kids especially love to snack on it in school, during lunch break. It is also served with tea at home, parties and other events.

The global market size of biscuits as of 2017 stood at a whopping $76.4 billion, with market behaviour showing that it is bound to hit $110 billion by 2025 at a CAGR of 5.8%. Topping the global charts, the U.S is the world’s leading producer of biscuits with a turnover estimated at US$28.8 Billion in 2020. China follows closely as the second-largest biscuit or cookie market in the world. Japan and Canada, each expected to rise at 1 per cent and 2.6 per cent respectively over the 2020 – 2027 period, are among the other notable geographic markets. Germany is expected to rise at roughly 1.7 per cent CAGR within Europe.

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In Nigeria, biscuits production remains a money-spinner. Recent research has shown that the sixteen functional biscuit manufacturers that operate in Nigeria produce as much as 400,000 – 550,000 tons per year. School institutions such, including nursery, primary, secondary and tertiary institutions are the conventional market places for biscuits or cookies.

Although the biscuit industry seems very lucrative, Nigeria’s production rate is below expectation. The issue of inadequate fluid infrastructural development to support the food-based manufacturers in Nigeria remains a daunting problem in the face of per nation development capital. Nevertheless, the success of any industry player thinking in the biscuit production sector will come from the ability to deliver highly delicious and appetizing biscuits, and consequently having a sustainable plan and effective marketing strategy. This is because the Nigerian market is highly competitive and competitive. For those looking to go into the biscuit or cookie manufacturing business, this article will be a dependable guide.

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What Is A Biscuit Or Cookie?

A biscuit or cookie is a sweet flat snack which is usually baked or fried. Biscuits typically of flour, sugar, and oil or fat. Other common ingredients such as raisins, oats, chocolate chips, nuts, and so on may be included. Essentially, the difference between the cookie and the biscuit is that while cookies are made from a softer, thicker and denser dough, biscuits are made from harder more coarse and drier dough, which gives its characteristic texture.

 

What Is A Biscuit Or Cookie Production Business?

Biscuit or cookie production involves all the stages involved in processing flour, sugars, starch, fat and other ingredients into finished processed edibles foods for consumption. It extends from the dough mixing stage to final output and packaging.

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Business Opportunities Associated With Biscuit Or Cookie Production Business In Nigeria And Across The World

1). Retailing Biscuits And Cookies:

The business of marketing and selling biscuits or cookies is a promising venture with a tendency to yield a high growth rate in the nearest future. Therefore, provisions and convenience stores looking to do a business that can positively yield stable returns can’t ignore the biscuit market.

2). Packaging Biscuit Or Cookie Products:

Marketing biscuits relies so much on efficient decision-making and strategic planning on distribution techniques, packaging and pricing strategy. Local manufacturers of biscuits who want to carve a niche for themselves must resort to using innovative packaging techniques to boost their sales.

3). Biscuit Making Machines:

The business of biscuit production will always keep food machinery providers at work. Dough mixers, rotary moulders, rotary cutters, laminators, biscuit baking ovens, cooling conveyors, oil sprayers, two-tier cooling conveyor with standard accessories, biscuit sandwiching system, are examples of pieces of equipment required for biscuit making.

 

Facts And Benefits Of Biscuit Or Cookies

  • Biscuits and cookies are seen as a very convenient meal among children and adults.
  • Cookies and biscuits are a staple accompaniment to most teas and beverages.
  • Biscuits and cookies are relatively cheaper than other convenient foods.
  • They have a long shelf life.
  • Biscuits and cookies are very easy to store.
  • They are high in fibre content.
  • Reduces nausea: Research attests that that ginger biscuit may help in treating nausea and motion sickness.
  • In other studies, the consumption of ginger-based products was proven to help in treating cold sweating and vomiting.
  • High in antioxidants: Ginger is also high in antioxidants, so daily ginger biscuit intake can prevent heart disease and cancer from occurring.
  • Biscuits and cookies are rich in anti-inflammatory properties which are also useful for the treatment of conditions such as rheumatoid arthritis, bursitis, ulcerative colitis, and bursitis.
  • Studies show that consumption of ginger biscuits may help regulate glucose levels and hence is recommended for diabetes.
  • The name ‘biscuit’ is derived from the Roman ‘Bis’ and ‘Coctus’ which mean ‘twice’ and ‘baked’ respectively.
  • “The Chocolate Finger” was the first experimental wafer launched in 1951.
  • Digestive biscuits are good for proper digestion.

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Types Of Biscuits Or Cookies

1). Bar Cookies:

The bar cookie is somewhere between a cookie and a cake. Some of the fastest and easiest cookies to make are bar cookies. They are cut into shapes such as circles, rectangles, triangles, or diamonds after baking and cooling.

2). Filled Cookies:

Filled cookies are made before baking. They are made from cookie dough stuffed with fruit or confectionery material. To prepare filled cookies, the filling is encased around the dough, and the edges are crimped. In miniature muffin tins, some are prepared as tiny tarts.

3). Fried Cooking:

Rising in popularity, fried cookies are drop cookies or filled cookies cooked in oil. These types of cookies, also referred to as fried dough, are sometimes dusted with powdered sugar after frying. Fried cookies are best served immediately after frying.

4). Moulded Cookies:

Moulded cookies are so-called because they are made before baking from the stiff dough and are moulded into shapes. Cookies are shaped or can be hand-shaped into wreaths, crescents, canes, logs, and balls by hand or in a mould. Some are moulded into large flattened loaves before baking and are then cut into smaller cookies.

 

How To Start A Biscuit Or Cookie Production Business In Nigeria: A Step-By-Step Guide

1). Draft An Effective Business Plan:

The business plan is a businessperson’s ultimate guide for a startup. Ensure to include all major goals and objectives of the business as well as the expected timeline of achieving the goals.

2). Determine The Business Location:

It is necessary to locate the company near the source of raw materials for producing biscuits. Where that is not possible or applicable, ensure to site the company in a town or city, to aid marketing and curb transport expenses. It is also crucial to locate the factory near a place where you can enjoy social amenities like power supply (electricity), workforce supply, motor road, etc.

3). Hire productive And Skilled Workers:

One of the factors deciding productivity is labour. If you’re running a large biscuit company in Nigeria, you need to recruit the best workers to help you achieve the set business goals. The staff must be people of integrity who are skilled in biscuit baking.

4). Register Your Business:

Before launching your biscuit business, you have to get the approval of the relevant Government regulatory bodies for foods products. They include the Standards Organization of Nigeria, National Health Insurance Scheme, NAFDAC, Ministry of health, and for company registration, the Corporate Affairs Commission (CAC).

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5). Institute A Strategic Marketing Strategy:

For a biscuit business to thrive in the middle of the existing competition, you need to design an effective selling strategy. Through effective online marketing, you can advertise and get your products known and marketed to the consumers. Also bear in mind that online marketing should never replace the need to sell your products in brick and mortar shops.

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Challenges Of Starting A Biscuit Or Cookie Production Business In Nigeria

  • High start-up cost
  • The high cost of machinery
  • The problem of insufficient knowledge about the business
  • Transportation problems
  • High market competition
  • Poor road network
  • Challenges with distribution across the country
  • Lack of trust between biscuit production companies and distributors
  • The high cost of labour
  • Digital marketing issues

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To Sum It Up

It is impossible for an edible item to run out of demand but it is possible for a particular brand product to run out of favour with the public. Starting a biscuit or cookie production business is as important as keeping it functional. The biscuit or cookie production business in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide network. If you’re looking for a lucrative business to venture into, biscuit or cookie production business in Nigeria is a great option to explore.

 

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