COUNTRY PROFILE
Discover more about the Ghana market including overviews about the retail, foodservice, and food-processing sectors. Events, resources, and more are linked throughout the profile.
$3.2 billion
total imports in agricultural and related products in 2021
$155.5 million
total imports from the United States in 2021
11.7%
increase in Ghana’s merchandise exports
Euromonitor reports that the economy in Ghana expanded in real terms in 2022, driven by increasing public and private consumption and external demand. However, global economic slowdown, elevated inflationary pressures and tightening financial conditions are set to undermine business and consumer confidence globally, weighing on the country’s economic outlook.
Over the course of 2022, the global economic outlook deteriorated considerably, as the war in Ukraine exacerbated energy and food supply issues and the price spike triggered in the aftermath of the COVID-19 pandemic. Following an expansion of 5.4% in 2021 supported by the post-pandemic recovery dynamics, real GDP in Ghana slowed down to 3% over 2022. As of 2022, GDP per capita reached US$2,157 in Ghana, which was higher than the average of US$1,751 per capita in Sub-Saharan Africa.
During the year, the country’s economic performance was supported by elevated private spending and public consumption. In 2023, Ghana’s economic development was expected to slow down, with real GDP growing by 2%. The near-term outlook in the country is clouded by slowing domestic and foreign demand, a sharp tightening of global financial conditions, mounting geopolitical tensions and potential energy price shocks. Going forward, the economic slowdown could also reduce the demand for workers and result in slightly increasing unemployment rates, although labor markets are expected to remain relatively tight.
USDA’s Office of Agricultural Affairs in Accra Ghana or FAS Post Accra reported that Ghana’s economic growth was significantly impacted by the COVID-19 pandemic and the war in Ukraine. Following the pandemic-induced slowdown, economic recovery was expected to grow in 2022 to 5.5% (it was actually 3%). However, recent economic shocks caused the Ghanaian Cedi to depreciate, prompting the Government of Ghana (GOG) to seek assistance from International Monetary Fund (IMF) to restore macroeconomic stability and boost reserves. Despite these setbacks, Ghana remains one of sub-Saharan Africa’s fastest- growing economies with a population of about 32 million. In 2021, Ghana imported about $3.2 billion in agricultural and related products. Imports from the United States totaled $155.5 million.
U.S. processed food exports to Ghana reached US$32.7 million in 2022, ranking it sixth in Sub-Saharan Africa. That represented a growth of 1% from the prior year and a new all-time high. Year to date (YTD) November of 2023 U.S. processed food exports increased 15% to US$35 million and an all-time record high.
Top U.S. processed food exports to Ghana in 2023 included:
$2.8 billion
estimated total of retail sales of packaged food products in 2023
178.1%
growth in retail sales of packaged food
$5.9 billion
forecasted retail sales of packaged food by 2028
According to Euromonitor retail sales of packaged food in Ghana was forecasted to reach just over US$2.8 billion in 2023. That represents growth of 178.1% and a U.S. dollar equivalent of US$1.8 billion. By 2028, Euromonitor forecasts that retail sales of packaged food in Ghana will reach US$5.9 billion. This represents growth of 69% and a U.S. dollar equivalent of US$8.7 billion from 2024.
High growth products in the forecast include:
FAS Post Accra reports that the Ghanaian market is filled with several twists and turns as well as some interesting dynamics. Although there is a rapid growth in the supermarket industry with Melcom, Shoprite, Palace, Game, Koala, and MaxMart leading the charge, the key decision makers are the importers, distributors, and local suppliers. These players control the market, branding of products, and the market price of products, especially given the fluctuating currency.
Like most countries in Sub-Saharan Africa, Ghana presents exciting opportunities to food retail business, buoyed by fast urbanization, rising household incomes, a growing middle class, and a transformation in eating habits mainly due to changing lifestyles. Consumption patterns for most of the population (especially the urban dwellers) are gradually favoring western foods, leading to the launch of brands like KFC, Pizza Hut, Second Cup, and Burger King. Retailers prefer stocking relatively smaller volumes of consumer-ready food products, prepared, and packaged for one-time or minimal period use only because many consumers do remain price sensitive. Consumer demand for these products is high due to their relative affordability.
Retail sector analysts forecast retail spending to increase from US$11 billion in 2019 to US$24 billion by 2023, thanks largely to the growing middle class. This consists of imported High-Value Products (HVPs) (40%), products partially processed and packaged in Ghana (8%), products completely processed in Ghana (11%), and locally, unprocessed foodstuffs and staples including fresh fruits and vegetables, fish, meat, etc. (41%).
Ghana’s foodservice market has recorded impressive growth in recent years, with the retail stores sector retaining the top position as the most rapidly growing segment. Retail outlets stocking imported high value food products, particularly convenience stores (including gas station shops) and supermarkets continue to proliferate across the cities as eating habits and taste of Ghanaian consumers change towards western foods. This represents sales opportunity for multiple U.S. products.
The European Union, Asia and South Africa are the dominant suppliers of imported consumer ready food products in Ghana. Asian HVP suppliers are achieving increasing market share in Ghana due to their more direct participation in distribution channels as well as promotion of their products. South Africa’s market share has been growing as a result of an increased bilateral trade promotion with Ghana.
FAS Post Accra reports that high value products with good potential in the Ghana retail food sector include noodles and other pasta products, frozen poultry and fish products, tomato puree and tomato puree concentrate, bottled vegetable cooking oil, non-alcoholic beverages (tea, coffee, fruit juice and soft drinks, baby foods, including infant formula, cereal baby foods, and breakfast cereals, including oatmeal.
FAS Post Accra reports that the accommodating business environment makes Ghana more attractive as an investment destination relative to many of its neighbors. Several international retailers have expanded their presence in Ghana and take up space in the proliferation of new commercial developments. These include Shoprite, Burger King, KFC, and Pizza Hut, among others. Local chains are also present in these same categories.
Modern retail had been restricted to Accra and Kumasi, but there is a growing presence across all regional capitals now, though a sizable portion of the population still prefers to do their weekly shopping at the traditional markets. This trend is fast changing, however, as the size of the middle class continues to increase. The accommodating business environment makes Ghana more attractive as an investment destination relative to many of its neighbors. Several international retailers have expanded their presence in Ghana and take up space in the proliferation of new commercial developments. These include Shoprite, Burger King, KFC, and Pizza Hut, among others. Local chains are also present in these same categories.
The hotel and restaurant sector has been identified as being the segment with the second most rapid growth after the retail stores. There was a sharp increase in the number of restaurants during the past five years. The rise in the population of Ghana’s middle class and urban dwellers, along with the swelling tourist/business travel have contributed to a surge in patronage of the services of hotels and the teeming restaurant sector, however the effects of COVID-19 pandemic and post-COVID-19 economy led to some restaurants shutting down.
FAS Post Accra reported that good sales opportunities exist for U.S. seafood products, beef and beef products, pork and pork, dairy products, and condiments and sauces.
FAS Post Accra reports that food processing is still underdeveloped, with less than 200 agro-processing firms registered and certified to operate by the Food and Drugs Authority. Even though demand for processed foods continues to grow, inefficient production coupled with inadequate quality of local raw materials preclude the development of a viable processing industry. The local food processing industry accounts for less than 30% of all sourced processed foods on the market. Retail outlets stock lots of processed foods because of growing demand, changing eating habits and diets of the growing urban and middle-class population. This represents an opportunity for U.S. exporters.