Market Analysis

Agriculture constitutes around 24% of Uganda’s $37 billion GDP, with an estimated 5% contribution from livestock, making it roughly a $1.48 billion industry of which, the Dairy sector is responsible for 50%; a $925 million industry that is growing at approximately 15.84% (CAGR) per year. The majority of the population are subsistence farmers and therefore do not buy milk. Our primary market in Kabale Municipality alone there are 50,000 approximately people that consume over 2 million Ltrs/Year which is equivalent to 5000 Ltrs of milk a day.

Ken Research announced latest market research report on “Uganda Dairy Products Market Outlook to 2020 — High Demand for Flavor Milk, yoghurt and Ice Cream in Uganda is Projected to Spur the Dairy Market” provides a comprehensive analysis of the dairy product market in Uganda. The report includes the market share contributed by the sales of different dairy products including processed milk, yoghurt, cheese, ice cream, butter, flavored milk and milk powder in Uganda. The study also enlists the key market indicators which include consumption per capita, total consumption and production, average per unit and price, and import and export data by value and by quantity. Trends and developments and regulatory framework are also added in the study for clear understanding about the factors responsible for present scenario of the market. The future analysis of overall Uganda dairy product market has also been discussed along with recommendations from analyst view.

The flavored milk market and yoghurt segments have shown significant growth during the period due to the increasing product variety offered by the manufacturers and strong retail distribution of flavored milk and yoghurt in the country. The presence of a large number of small and large players in the market which majorly include Sameer Agriculture and Livestock, Charms Uganda, and Jesa Farm coupled with the diverse product portfolio of these companies offering a large number of flavors is the major reason which has resulted in high growth of the segment in Uganda.

“In order to penetrate into the Uganda dairy product market, the market players are recommended to use proper hygiene and sterilized production practices in order to earn the trust of the domestic customers in Uganda. The packaging mix should be provided to customers in affordable cost to meet the demands of people of economically sensitive country.” according to Research Analyst.

The retail sale volume has doubled during the period resulting which the increased per capita consumption of flavored milk and yoghurt in the last 3 years.

Batuma Fresh Yoghurt

In recent years, yogurt has become one of the fastest-growing categories of Dairy Products. In addition, customer engagement in consumer brands has gradually deepened thanks to the popularity of social media. As a functional drink “fresh yogurt” has a stronger emotional connection with the more health-conscious customers compared to the traditional yoghurt products on the market.