Soy milk, a high-protein, iron-rich liquid, is produced by pressing ground, cooked soybeans. While it resembles cow’s milk in appearance, it differs significantly in nutritional content. Soybeans (Glycine Max) are classified as oilseeds rather than pulses. Originating in East Asia (China), soybeans have become a major crop worldwide. In Africa, soybean cultivation began in the late 19th century, and Nigeria now stands as the largest producer of soybeans on the continent. The commercial production of soy milk holds great potential, offering a cholesterol-free, low-fat alternative to dairy milk
Soy milk, a high-protein, iron-rich liquid, is produced by pressing ground, cooked soybeans. While it resembles cow’s milk in appearance, it differs significantly in nutritional content. Soybeans (Glycine Max) are classified as oilseeds rather than pulses. Originating in East Asia (China), soybeans have become a major crop worldwide. In Africa, soybean cultivation began in the late 19th century, and Nigeria now stands as the largest producer of soybeans on the continent. The commercial production of soy milk holds great potential, offering a cholesterol-free, low-fat alternative to dairy milk

This report examines the feasibility and market potential for establishing a soya milk production facility in Nigeria. Soya milk is a non-dairy milk alternative made from soybeans that has seen rapidly increasing demand globally due to its nutritional benefits and appeal to consumers with lactose intolerance, milk allergies, or vegetarian/vegan diets.
Market Analysis
Nigeria has a population of over 200 million, making it the largest market in Africa. While dairy milk remains the dominant milk product, the market for non-dairy milk alternatives like soya milk is growing steadily. Key drivers include:
Factors influencing the market for soya milk production in Nigeria include rising disposable incomes and health awareness among the middle class, increasing prevalence of lactose intolerance, growth of vegan/vegetarian diets, especially in urban areas, and the importation of soya milk brands that has raised product awareness.
Based on market research, the potential domestic market for soy milk in Nigeria is estimated at $5.2 billion annually and projected to grow at more than 11% per year over the next 5 years. This growth is driven by factors such as rising awareness of soy milk’s nutritional content, increasing fitness trends, and the desire to explore different dietary preferences. Additionally, soy milk-based products are gaining popularity in supermarkets and bakery shelves, further contributing to market expansion. However, it’s essential to address challenges such as competition from other non-dairy alternatives and concerns related to taste and allergens

Production Requirements
The proposed production facility would locally manufacture soya milk from Nigerian-grown soybeans. Key requirements include:
The project involves acquiring 1 acres of land in Shagamu, Ogun State, building facilities for soybean processing, packaging, and storage, importing specialized soya milk production equipment, securing raw material supply chains for soybeans and packaging, and developing distribution networks to reach retailers nationwide.

The project involves a significant capital investment. By Year 5, projected revenues are expected to increase substantially, supporting a prospective internal rate of return (IRR) of 33% over a 5-year period. Notable risks include competition from imported brands and the volatility of soybean prices

In summary, the growing Nigerian market, combined with the ability to locally source raw materials, presents a viable opportunity for establishing a soya milk production business that can meet increasing consumer demand.