How To Start A Lucrative Ginger Oil Production Business in Nigeria: The Complete Guide

How To Start Ginger Oil Business in Nigeria or Africa: Complete Guide
How To Start A Lucrative Ginger Oil Production Business in Nigeria or Africa: Complete Guide | Image: Pixabay

Ginger is a perennial herb’s rhizome used as a spice, preservative, and medicine. Ginger oil, extracted from the Zingiber officinale herb plant is sweet, moist, and energising. Ginger oil is primarily used in confectionery, desserts and baked goods. It also acts as a laxative, antiseptic, tonic and stimulant. More so, ginger oil has been used as a remedy since ancient times in various medicinal products.

The distinctive hot flavour and pungent ginger odour are due to the presence of an acrid compound called gingerol. Gingerol is responsible for most of the nutritional effects of ginger. Ginger varies in colour ranging from pale yellow to a darker amber colour. The oil also differs in viscosity, from medium to watery. Ginger oil is rich in chemical components which are useful for different ailments. It is often blended with other essential oils to produce many different mixtures. It can be mixed with cedarwood atlas, blue gum eucalyptus, frankincense, geranium, lemon, lime, roman chamomile, rose, rosemary, and sandalwood for different purposes.

Globally, production of ginger oil is segmented along these regions; North America, Western Europe, Eastern Europe, Latin America, Asia Pacific, Middle East and Africa. Countries with the highest production rate are India and China. The global ginger processing market reached a value of approximately US$ 2 trillion, with a CAGR of roughly 10% in 2010-2017. The volume of imports has risen by 12% annually since 2013. In the same period, the volume of imports increased by 13% annually, hitting €250 million in 2017 and is projected to rise proportionately from 2018 to 2025.

In 2016, Nigeria was 3rd highest exporter of ginger, led by China and India. Nigeria had an 11.5% share of world growth in 2017, generating 349.9 thousand tons of ginger. Export growth improved dramatically between 2009 and 2010, as the overall export volume grew almost four times that year. Nigeria currently produces nearly 523,000 metric tons of ginger amounting to 90% of its demands. When demand for ginger rises, the price is expected to grow by 14%. The demand for ginger oil is always on the rise. It has a vast domestic and foreign market. Prospective entrepreneurs in the industry will be glad to venture in.

However, Nigeria’s capacity for ginger processing, particularly ginger oil, remains grossly insufficient owing to the underdevelopment of the country’s agro-processing sector and the high cost of processing facilities. An intentional policy approach should be taken by the government to change this story. Notwithstanding, the market for ginger in Nigeria is impressive, and the ginger oil production business will make a profitable venture if you’re hoping to start one in the country or even in Africa as a whole. Here is a guide on how to start a lucrative ginger oil production business.

See Also: How To Start A Lucrative Foodstuff Production Business in Nigeria: The Complete Guide


What Is Ginger Oil?

The ginger oil is extracted from the ginger root. Ginger oil may vary in colour, from pale yellow to darker amber, and the viscosity varies from medium to watery as well. It has a heavy herbal scent which is sweet, sharp and dry. Ginger oil is commonly used for fruit, cookie and biscuit flavouring. Besides, ginger oil is also used for medical purposes and helps to relieve influenza viruses. It also serves a treatment for gastrointestinal problems. Ginger oil has a distinct aroma that can be described as intense, warm, or spicy. As such, it’s often used for aromatherapy. It can also be used in a variety of applications on the skin and hair.


What Is Ginger Oil Production?

Ginger oil production refers to all the process involved in the extraction of oil from the ginger rhizome. Extraction of ginger oil requires either of two means: steam distillation and extraction of solvents. Solvent extraction is for ginger oleoresin extraction, while steam distillation is used to obtain essential oil from the ginger.

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Business Opportunities In Ginger Oil Production In Nigeria & Around The World

Ginger oil has applications in various industries such as food and beverage, pharmacy, personal care, and other sectors.

1). Food and Beverage Industry:

Ginger oil is used for flavour and seasoning purposes in the food and beverage industry, particularly in confectionery drinks and baking products. It is commonly used as a savour for cake, cookies, biscuits, ginger snaps etc. The market demand for ginger oil in non-alcoholic beverages is vast.

2). Medicinal Use:

Ginger oil has several uses in the field of medicine including treating gastrointestinal disorders such as nausea and vomiting, diarrhoea, food poisoning, gastric ulcer, fever, asthma, migraine, inflammation and several other treatments. It is also used as an antiseptic, laxative, tonic, stimulant, carminative, expectorant, analgesic, anti-inflammatory, antispasmodic, appetite-boosting, circulatory, diuretic, detoxifying, immune-boosting and sudorific. Ginger oil has been used as a treatment for ages because of its healing properties. Also, it relieves fatigue, mental tension, dizziness, weakness, restlessness and anxiety.

3). Cosmetics:

Ginger oil is essential in hair care. It is used in the production of personal hair care products. Also, ginger oil is used as a tonic for stimulant warming, anti-inflammatory and firming therapy.


Facts and Benefits of Ginger Oil

  • Ginger oil eases nauseousness, menstrual discomfort, upset stomach, anxiety, muscle soreness and joint pain.
  • Ginger oil is widely used because of its antiseptic and anti-inflammatory properties.
  • It is used in aromatherapy because it has a warm and stimulating effect on the skin and mind.
  • Ginger oil helps promote easier breathing by opening up airways for asthmatic sufferers.
  • It has anti-inflammatory properties that help combat symptoms of colds, flu and fever.
  • It reduces and eliminates mucus from the respiratory tract to soothe irritation and congestion.
  • Ginger oil exhibits tonic, laxative, digestive, and anti-spasmodic activity in the body.
  • It enhances sexual health by arousing sensuality, calmness and general libido.
  • It also helps to even out the skin tone, thereby contributing to a smooth clear and radiant complexion.
  • Ginger oil also enhances skin elasticity and fading of scars.
  • It boosts blood circulation on the epidermis, thereby stimulating the growth of stronger and healthier hair and skin.
  • A ginger plant can grow as tall as 4ft
  • China, India, Nigeria and Western European countries are at the forefront of ginger oil production.
  • In Nigeria, states that produce the highest ginger are Kaduna, Gombe, Bauchi and Nassarawa.
  • Mature ginger plants are ripe for harvesting after ten months or a year.
  • Ginger oil is also used to treat cold and migraine

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How To Start A Ginger Oil Production Business in Nigeria: Step-By-Step Guide

1). Washing and sorting:

Begin by washing your ginger rhizomes to remove impurities and unwanted substances that might make it unfit for use. The rhizomes must be cleaned and sorted.

2). Ginger Peeling:

The next step is ginger peeling. You can do this manually with the use of hands or via an automated peeling system for processing vast amounts of ginger in case of commercial production. Peeling is necessary in order to avoid the growth and fermentation of moulds.

3). Ginger Whitening:

The peeled rhizomes can then be bleached to enhance appearance. Bleaching requires boiling the rhizomes in water for about 2 to 3 hours after peeling and drying. Afterwards, steeping for 6 hours in a 1.5 to 2% lime solution of calcium oxide.

4). Ginger Drying:

The drying process begins after the ginger has been drained. The ginger can be either sun-dried or oven-dried. In areas with right weather conditions, sun-drying will take around a week. However, mechanical drying is typically quicker. Drying will take place at 8 – 10%.

5). Grinding:

After drying, the ginger is crushed into powder using a mechanical crusher. This prepares the ginger for the next phase of steam distillation.

6). Steam Distillation:

For steam distillation, load your ground ginger into a still and pass it through live steam. During the heating process, the distilled water leaves from downside, while the ginger essential oil is collected at the top thus entraining the volatile components, which are then condensed with cold water to let it settle. The oil usually extracts from the gas after refrigeration. Cohabitation or re-distillation is performed to improve the yield of crude. Steam distillation is more uncomplicated because the main ingredient is not solvent but pure water.

7). Packaging:

The next stage is collecting and packaging your ginger oil. Ginger oils are best stored in jars or glass bottles. Package and brand your product professionally for more effective marketing.

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Challenges of Ginger Oil Production Business in Nigeria

  • Start-up cost might be too much for most entrepreneurs.
  • The process is heavily industrialised.
  • Lack of access to loan facilities
  • The extraction of ginger oil requires lots of patience and efforts
  • Inaccessibility to the international market
  • The high cost of labour
  • Storage problems
  • Lack of government policies to support the production
  • Lack of arable land for growing ginger plants
  • Marketing challenges

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To Sum It Up

Because of its health benefits, ginger oil remains in constant demand across the world. It is useful in the food and beverage industries as well as for pharmaceutical functions. Ginger is of such high value that it presents an enormous opportunity for every prospective “agropreneur”. So, if you’re planning to start up an agro-business, the ginger oil production business might be the perfect option for you.

The ginger oil 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 supply chain network. If you’re looking for a supply chain business to venture into, the ginger oil production business in Nigeria is a great option to explore.


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