GHANA – Data from the USDA’s Food Processing Ingredients Annual Report reveals a significant increase in Ghana’s imports of essential food processing ingredients, which have escalated from US$89.2 million in 2022 to US$133 million in 2023. 

The imports encompass a variety of products, including additives, wheat flour, spices, sweeteners, and food coloring. 

This trend points to Ghana’s increasing reliance on foreign sources to satisfy its food processing demands.

The United States has experienced the most substantial growth in food ingredient exports to Ghana, with figures climbing 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 Ghana, holding a market share of less than 3%.

This upward trend offers potential advantages for exporters, particularly those from the US. Still, it also highlights the underdeveloped state of Ghana’s food processing industry. 

The report emphasizes the need for government intervention to meet the rising demand and improve the sector’s capabilities.

Ghanaian retail outlets are increasingly filled with processed food products, driven by escalating consumer demand, evolving eating habits, and the growing urban middle class. 

This situation presents a substantial opportunity for US exporters, who find that while Ghanaian consumers are often price-sensitive, they also prioritize quality. 

The expanding middle class demonstrates a readiness to spend on premium items, and Ghana’s political stability combined with relatively open import regulations make it an appealing market.

The growing demand for imported food products can be linked to Ghana’s economic advancement and rapid urbanization, which have led to the emergence of a middle class with more disposable income. 

Additionally, a report from the Ghana Statistical Service indicates a favorable economic forecast, with the country’s trade surplus for the first quarter of 2024 reaching GH₵11.5 billion (approximately US$748.7 million), more than double the GH₵4.5 billion (around US$292.9 million) recorded in the same period in 2023. 

In terms of trade partnerships, Asian countries have gained the most from Ghana’s expanding economy, accounting for 41.3% of the country’s imports in the first quarter of 2024, surpassing Europe’s share of 37.3%.

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