How To Start Ice Cream Business in Nigeria or Africa: The Complete Guide

How To Start A Lucrative Ice Cream Production Business In Nigeria Or Africa: The Complete Guide | Image: Triowin

Ice cream is a combination of a delightful taste and flavour with an incredible feeling of sublime satisfaction as it melts in the mouth. It is one of the most consumed confectionery foods all across the world. Ice cream is a traditional dessert that comes in various flavours, including chocolate, vanilla, and strawberry, among others. Its commercial production dates far back to the early 1850s and it continues to yield billions of dollars in annual revenue till date. The introduction of new flavours continually acts as a significant driver of the ice cream market.

The global ice cream industry was worth $57.7 Billion in 2018, listing a CAGR of 4.5% through 2011 – 2018. The market was further projected to cross $91.2 Billion by 2024, at a CAGR of 8.0% from 2019 to 2024. Since the fast-food industry is one of the significant end-users of ice cream, the increase in the number of fast-food chains across the globe is driving the consumption of ice cream through the roof. Furthermore, because of the elastic income nature of ice cream consumption, regions like India and China are experiencing a rise to its per capita consumption. Besides this, there has been an expansion in modern retail setups such as departmental stores and convenience stores, which contributes to the increase in global sales. However, the US is leading the way due to the influx of handcrafted ice creams, which is relatively linked to market maturity. Countries such as Japan, Brazil, Germany and Italy also contribute a significant share to the global ice cream industry.

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Ice cream production in Nigeria has, in recent times, registered tremendous growth. The Nigeria ice cream market recorded a CAGR growth of 8.52% and is expected to reach approximately N15 million in 2018. Multi-Packs (Water-Based) are the leading segment in convenient take-home ice cream section, with a per capita consumption of 0.0001723 litres, as recorded in 2018. On the other hand, the dairy-based single serve is the fastest-growing section in the Impulse Ice Cream category. The Impulse Ice Cream category is expected to reach N2 billion by 2023, with a CAGR of 12.3%.

At certain times of the year, Nigeria could be one of the hottest places in Africa, with everyone always in need of something cold to quench their thirst and stay hydrated. Also, the demands for ice cream from youths and children contributes significantly to Nigerian ice cream market. Ice cream sells better in towns and cities in Nigeria. Since these categories of people make a higher percentage of the Nigerian population, it makes it a perfect business fit to invest your time money. If you’re looking to start a lucrative business in Nigeria or any part of Africa, the ice cream production business is a worthy investment.

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What Is Ice cream?

Ice cream is a sweet, frozen treat made from a combination of milk, cream and flavours, which may be artificial or natural. Some ice cream variants also involve the use of eggs as one of the main ingredients.

What Is An Ice Cream Production Business?

Ice cream production describes the entire process involved in processing various ingredients and substances into finished ice cream. There are several methods for the production of ice cream but the outcome is always the same tasty semi-liquid snack! An ice cream production business involves production, packaging and distribution of ice cream to retailers and end-consumers.

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Business Opportunities In Ice Cream Production Business In Nigeria And Across The World

1). Sale And Distribution Of Ice Cream Equipment:

Ice cream production requires the use of certain large and small equipment, depending on the volume in question. Given that more ice cream businesses and shops continue to sprout across the nation, selling ice cream equipment is a profitable business idea.

2). Ice Cream Supply:

Dessert is arguably the most significant part of a meal. That is why restaurants need a constant supply of ice cream in to meet the constant demand of their customers. With the increase in the number of restaurants and hotels comes the demand for ice cream. This requires the service of distributors and suppliers. You can start an ice cream supply and target the restaurants in your area.

3). Ice Cream Production:

Processing ice cream, especially in large quantities, requires trained personnel to get the right output. Production of ice cream is a full-scale business opportunity that keeps lots of people employed all across the world.

4). Ice Cream Distribution:

Most ice cream companies need distributors for their products. If you don’t have the finance to manufacture, then you can start up an ice cream distribution business. To start this, you have to first acquire the necessary equipment, for example, a cold truck and a cold room or storage. Next, you have to think about where to get your products from and to who you can distribute to. You can target malls, supermarkets, ice cream parlours, mobile vendors, public and private schools, the foodservice industry etc.

 

Facts And Benefits Of Ice Cream

  • Ice cream is a delicious source of carbohydrates, calcium, phosphorus, thiamine, riboflavin, niacin and folate, as well as vitamins A, C, D, E, K, B-6 and B-12.
  • Ice cream stimulates the brain.
  • It is an incredible source of energy.
  • It never goes out of stock in demand
  • It boosts immunity.
  • Ice cream is a mood influencer.
  • Ice cream is a fermented food, and fermented foods are beneficial for our respiratory and gastrointestinal health.
  • It improves oxygen circulation to your tissues and maintains the pH balance of your body.
  • The phosphorus content in ice cream helps in increasing your libido by keeping a tab of your testosterone levels.
  • Ice cream dates back to the 4th century BC when Roman emperor Nero brought ice from mountains and mixed it with fruit toppings.
  • The US, Japan, Brazil, Germany and Italy are some of the biggest markets for ice cream.
  • Vanilla and chocolate are the most common flavours of ice cream.
  • Other flavours include garlic, avocado, bacon, and liquorice.
  • An average American consumes almost 60 pints of ice cream each year.

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Types Of Ice Cream

1). Gelato:

Gelato is an Italian variant of ice cream. This type of ice cream is made with only whole milk and no added cream. The milk fat percentage in Gelato is much lower than traditional ice cream. Also, Gelato is made without eggs and stabilizers, and there is little to no air whipped into it while it is being churned, leaving a dense, thick texture behind.

2). Frozen Yogurt:

Frozen yoghurt, or Fro-Yo, is a prevalent type of ice cream in most parts of the world. This frozen treat is often made using some of the same ingredients as the traditional ice cream but with a lower fat percentage. There is also yoghurt mixed in.

3). Sorbet:

Sorbet is a frozen treat containing minimal dairy, sometimes none. It is made with frozen berries and sweetened water, and it has a light texture and flavour.

4). Sherbet:

Sherbet is a fruit-based frozen dessert, but unlike sorbet it contains dairy. It is made with fruit juice, milk, egg whites, and sometimes gelatin. Sherbet ice cream is a frozen dessert that contains no more than 1-3% milkfat. If it goes over 3%, it is called ice cream. If it is under 1%, it is called water ice.

5). Italian Ice:

Often misplaced with sherbet, Italian ice (“water ice”) is fruit-based and made with the same process as traditional ice cream. It contains no dairy, although egg white is sometimes included in the mix.

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How To Start An Ice Cream Making Business In Nigeria: A Step-By-Step Guide

1). Get The Needed Skills:

To start an ice cream production business, you need to first acquire the skills needed to produce ice cream. This involves learning the basics and then adding your style to give your products a signature taste. Having a good and unique style of production will give you an edge in the market. It is also important to update your skills and those of your team members from time to time through continuous training.

How To Make Ice Cream

To make ice cream, some of the basic ingredients needed are heavy cream, whole milk, sugar, sea salt, large egg yolks, etc.

  • In a small pot, simmer the heavy cream, milk, sugar, the flavour of your choice, and salt until the sugar completely dissolves. It takes about five minutes.
  • In another bowl, whisk egg yolks. While whisking, slowly adds about a third of the hot cream into the yolks, then put the yolk mix back into the pot with the cream and whisk. Put the pot on medium/low heat and gently cook until mixture is thick enough to coat the back of a spoon. Then sieve into a bowl.
  • Cool the mixture down to room temperature (you can put in the blast chiller for a few seconds to speed up the process. But it should not be cold). Cover and chill at least 4 hours or overnight in your standard fridge.
  • Churn the mix in the ice cream maker following the manufacturers’ instructions.
  • Serve directly from the machine for soft serve, or store in the freezer until needed.
  • Package and market

2). Determine Your Scale Of Business:

How big do you want to go? A bigger scale would be that of a restaurant serving or commercial purpose for multipurpose such as gifting or shopping, distribution etc. A smaller-scale would include solely for consumption between smaller sectors and not a vast population. Either way, some of the factors to put into consideration here are the channels of distribution and the packaging needs. Determining your scale right from the start gives you a concise idea of what budget you should prepare for your ice cream business.

3). Undertake A Feasibility Study:

This involves studying the market or locality you want to establish your ice cream production business. Identify your present and possible competitors, the availability of restaurants and hotels, and the preference of the people, among many other factors.

4). Purchase The Necessary Equipment:

Equipment needed depends mostly on whether you want to go large-scale or not. However, some of the basic tools needed are:

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  • Ice cream dipping cabinet
  • Ice cream merchandising case
  • Freezer
  • Ice cream maker
  • Ice cream dispenser

5). Register Your Business:

Register your business as a business entity and also apply for a license in the food regulatory body of your state, such as NAFDAC.

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Challenges Of Starting An Ice Cream Production Business In Nigeria

  • Limited electricity supply for keeping ice cream chill.
  • Extreme hot weather makes it difficult to keep ice cream cold.
  • Competition from other brands
  • Investment capital is high.
  • The rise of low-calorie ice cream
  • Poor road network for distribution.
  • Fluctuating prices of required ingredients
  • Excessive regulations from food regulation bodies.
  • Constant introduction of flavours and changing customer tastes.
  • Very low demands for ice cream during cold seasons.

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To Sum It Up

Although the ice cream business suffers a dip during cold seasons, it is bound to stay in demand from time to time, and, therefore, holds a great promise for investors. The ice cream 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, the ice cream production business in Nigeria is a great option to explore.

 

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