GHANA- Data from USDA’s Food Processing Ingredients Annual Report has revealed Ghana’s imports for key food processing ingredients have increased from US$89.2 million in 2022 to US$133 million in 2023.
These imports included additives, wheat flour, spics, sweeteners, and food coloring. According to the report, the surge in food ingredient imports underscores Ghana’s increasing reliance on outside sources to meet its food processing needs.
The US experienced the most significant growth in food ingredient exports to Ghana, increasing from US$1.45 million in 2022 to US$2.21 million in 2023. However, the US remains the 12th largest supplier of food ingredients to the West African nation, holding less than 3% market share.
Although the data represents an opportunity for exporters like the US, the rising food ingredient imports is an indication of the country’s underdeveloped food processing sector. The report recommends the government’s intervention to catch up with increasing demand.
The report said, “Retail outlets stock lots of processed foods due to growing demand, changing eating habits, and diets of the expanding urban and middle-class population. This represents an opportunity for US exporters.”
“Most consumers in Ghana are price-sensitive, but the quality is never overlooked, and the growing middle-class values premium products. The country offers expanding market opportunities due to its remarkable record of political stability and relatively liberal import policies.”
The demand gap is primarily due to Ghana’s economic growth and rapid urbanization, which have fueled a middle class with higher disposable income. However, the report also highlights this growing middle-class segment appears to prioritize the quality of goods, which explains their preference for Western brands and products.
The report also reflects an increasing interest in Ghana’s trade. According to another recent report by the Ghana Statistical Service, the country’s trade surplus for Q1 2024 was GH₵ 11.5 billion (US$748.7 million), more than two times the value of GH₵ 4.5 billion (US$292.9 million) in Q1 2023. The trade surplus (and not deficit) is an indication of the country’s improving economy.
Asian countries have benefitted the most from the country’s growing economy. The continent accounted for 41.3% of the country’s imports, surpassing Europe’s 37.3% in Q1 2024
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