Frozen food business, which has to do with the sale of fish, chicken, prawns, gizzards and turkey, among others, is a very lucrative business in Nigeria due to the population growth and surge in the demand for ready to eat foods.
The business, which requires little or no skills is a large market even as the Global Opportunity Analysis and Industry Forecast, 2020–2027” report that the global frozen food market garnered $291.8 billion in 2019, and is estimated to reach $404.8 billion by 2027, registering a CAGR of 4.2 per cent from 2020 to 2027.
No doubt, Nigeria’s frozen foods market size is projected to grow during the 2020 to 2026 forecast period. The ready-to-eat (RTE) section is expected to gain a more significant market share in terms of revenue over the coming years, as they are convenient to make and involve less time and efforts.
A frozen foods seller in Lagos, Mrs Ronke Adedeye tells me that, venturing into the business in 2015 was the best decision she has ever made in her life, as she has been able to send her five children to the university.
Adedeye says, there is always demand for frozen foods as people will have to eat to stay alive and serve their guests when organising ceremonies such as birthday parties, weddings, naming ceremony, convocation, festivals, which are like every day events.
Starting the business
The first thing to do when venturing into frozen foods business is to conduct research, Mrs Adedeye said, adding that, though, one do not need to attain a degree, but would need to have basic knowledge on how to operate the business in the country.
“You need to have a business plan, if you want to be successful in the business. You need to know how much to raise to start the business and where to buy your frozen foods at a cheaper rate,” she stated.
Next is to follow the business plan, starting with business registration with C.A.C, the frozen foods seller disclosed. After that, Adedeye said one needs to rent a shop at a very busy place, (for instance market or over crowded areas) and next is to buy a very good refrigerators because that could make or mar your business.
In a place like Nigeria, where power supply is not stable, one will need to have backup generators or solar panel, and a good stabilisers to avoid stories that touch the heart, she advised.
Profitability
Frozen Foods Business is very lucrative in Nigeria, Mrs Adedeye confirms, adding that, “like I said earlier, i was able to train my children in the higher institution as a result of the business.
“I started the business with just N200,000, but right now the frozen foods in my shop is worth more than N5 million. The more money I put into the business, the more the profit,” she says.
