Ghana’s food ingredients imports increased to US$133M in 2023

Data from the USDA’s Food Processing Ingredients Annual Report reveals that Ghana's imports of key food processing ingredients have surged from US$89.2 million in 2022 to US$133 million in 2023. These imports include additives, wheat flour, spices, sweeteners, and food coloring. This increase highlights Ghana’s growing dependence on external sources to meet its food processing needs.

Among the exporters, the US saw the most notable rise in food ingredient exports to Ghana, growing from US$1.45 million in 2022 to US$2.21 million in 2023. Despite this growth, the US remains the 12th largest supplier of food ingredients to Ghana, with a market share of less than 3%.

While this trend presents an opportunity for exporters, such as those from the US, it also indicates that Ghana’s food processing sector is underdeveloped. The report suggests that government intervention is necessary to address the growing demand and enhance the sector’s capacity.

Retail outlets in Ghana are increasingly stocked with processed foods, driven by rising demand, shifting eating habits, and the expanding urban and middle-class population. This trend presents a significant opportunity for US exporters, as most Ghanaian consumers are price-sensitive but also value quality. The growing middle class is willing to invest in premium products, and the country's political stability and relatively liberal import policies make it an attractive market.

The demand gap is attributed to Ghana’s economic growth and rapid urbanization, which have created a middle class with greater disposable income. This segment is noted for its preference for high-quality goods, explaining the appeal of Western brands and products.

Additionally, a recent report by the Ghana Statistical Service shows a positive economic outlook, with the country’s trade surplus for Q1 2024 reaching GH₵11.5 billion (US$748.7 million), more than double the GH₵4.5 billion (US$292.9 million) recorded in Q1 2023. This surplus indicates a strengthening economy.

Asian countries have benefited most from Ghana’s growing economy, accounting for 41.3% of the country’s imports in Q1 2024, surpassing Europe’s 37.3% share.