How To Start A Lucrative Cake Bakery Business In Nigeria: The Complete Guide
It no hidden fact that running a cake business in Nigeria is indeed a lucrative business venture.
Cakes come in different types and sizes, and the only limitation to the uniqueness of a cake exists in the creativity of the baker.
The cake industry has always experienced growth, and due to newer cake innovations and creativity, there has been a leap in demand for it, especially in the US where about $140 million goes into the cake industry, and approximately 100 million cakes are consumed annually.
In 2016, the value of the Nigerian baked goods market amounted to about 185.5 million Nigerian Naira, and is forecasted to reach 203 million Nigerian Naira by 2021, showing a steady and progressive rise of the industry.
If you’re looking for how to start a cake bakery in Nigeria, Africa, or anywhere around the world, this article is a great place to start.
What Are Cakes?
Cakes are sweet foods typically made of flour, sugar, eggs, butter, milk and other ingredients that are usually baked together. Cakes are usually classified according to the occasion they are prepared for and examples include wedding cakes, birthday cakes, anniversary cakes, etc.
What Is The Cake Bakery Business About?
The cake bakery business is the baking of cakes for sale to make a profit. In a broad sense, it involves acquiring the right ingredients, baking the right cake design, having ready clients and\or workers, taking orders and making deliveries.
Opportunities In The Cake Bakery Business
1). Cake Baking:
Cake baking is a lucrative niche to venture into as there is a constant need for cakes for events, birthdays, weddings, and even as a dessert.
2). Cake Decoration:
Cake decoration is a growing niche where business are 3D printing paper-based cake elements put on cakes for bulk cake bakeries for thousands of cakes daily.
Facts And Benefits Of Cakes
- The best cake in the world is believed to be the chocolate cake
- Cake business makes room for specialization and high creativity
- The quote “you can’t have your cake and eat it” first appeared in the 16th century
- The British cake market is worth £1.2 billion a year
- The United States of America is the world’s highest cake consumer
- The world consumes between 50 and 100 million cakes a day
- With as low as ₦50,000, you can start up a cake business in Nigeria
- Cakes are high in sugar which is an extra source of energy
- There is a cake flavour for almost any fruit
- The majority percentage of people love cake which makes it a good business option
Types Of Cakes
Cakes are majorly classified into two categories which are:
1). Shortened Cakes:
Shortened cakes are moist and quite soft; these are also called butter cakes or cream cakes.
2). Unshortened Cakes:
Unshortened cakes, however, are even softer than their counterparts, these include angel food cake, chiffon cake, sponge cake, etc.
How To Start A Cake Bakery In Nigeria: Step By Step Guide
Great cake baking requires quality creative skills, therefore, to set up this business, it is necessary to have undergone an in-depth world-class creative cake baking class to gain rich expertise on cake making.
2). Planning & Setup:
Setting up a successful cake bakery business requires a plan, which would include the budget, reach of customers, market size, location of the company, business management and many more.
The right environment to set up the cake bakery business is key to maintaining great hygiene and have easy access to the markets.
3). Purchase Equipment:
Purchasing the right cake baking equipment and ingredients is key to making a product a lot of people would love to purchase again after their first trial.
Promoting the business is next and key as this is crucial to creating awareness and driving up sales.
It is one thing to have a cake business, and it is another thing to be able to meet the needs of customers, either by manually delivering it to them or having their orders complete and ready at the exact time for pick up.
Understanding project management and how to meet up to targets would go a long way.
Challenges Of The Cake Bakery Business In Nigeria
Here are some challenges that can affect starting a cake bakery in Nigeria, Africa, or many other places around the world:
- Set up requires quite substantial capital
- Requires time and energy
- Lack of steady power supply
- Lack of adequately skilled personnel
- Requires quality management
- Requires constant learning as there are constant variations in orders by customers
Setting up a cake business in Nigeria is a lucrative venture as there is a constant high demand for it, especially during the weekends, special holidays, events, and celebrations.
If you’re looking to start a business with a huge available market, starting a cake bakery in Nigeria is one way to go.
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