Hibiscus, locally known as “zobo” in Nigeria, holds significant revenue potential due to its rising demand both locally and internationally.
Fueled by health, beauty, and culinary trends, the hibiscus market is projected to reach $211.7 million by 2028 and $230 million by 2033, according to US market research presenting a huge opportunity for investors.
Major importers like Germany, the USA and Mexico primarily seek dried hibiscus flowers for beverages. In 2017, Nigeria earned $35 million from hibiscus exports to Mexico alone, according to the Association of Hibiscus Flower Exporters of Nigeria (AHFEN).
In an interview with Olatunji Lawal, President of AHFEN, he emphasised several factors impeding growth, including Mexico’s 2017 ban on hibiscus exports from African countries, fluctuating foreign exchange rates, the influx of foreign investors, delayed shipments and changing foreign policies.
However, with the ban being lifted, there’s a huge opportunity for investors if these challenges can be addressed, he stated.
Oshevire, secretary to the association, also highlighted that around 80 percent of individuals entering the hibiscus export business lack the necessary technical knowledge to operate successfully. Technical training is key to ensuring efficiency and integration with national standards, he noted.
Furthermore, the increasing influence of foreign investors, particularly from China and India, has led to pricing pressures that reduce profit margins for local exporters, jeopardizing the viability of the industry.
In 2022, Rafiu Adejaro Bello, then-Nigerian Ambassador to Mexico, expressed that Nigeria could earn $3 billion annually from hibiscus exports to its largest markets.
AHFEN noted that the country exported 40 feet of 1,983 containers, totaling 23,796 metric tons in 2023 alone and with the current market price of N2.5 million per metric tonne, lots of farmers have high revenue expectations if these challenges could be addressed.
AHFEN also emphasized that the hibiscus industry offers significant opportunities for boosting non-oil exports and enhancing the livelihoods of rural communities. As demand for hibiscus continues to rise, the potential for investors and entrepreneurs is substantial.
Global market for hibiscus flower
The global hibiscus market, valued at US$113.2 million in 2021, is steadily expanding, with an expected Compound Annual Growth Rate (CAGR) of 7.2 percent from 2021 to 2028.
A recent report by the International Market Analysis Research Consulting (IMARC) Group, a leading market research firm, forecasts the global market for Hibiscus sabdariffa, commonly traded in dried flower and other forms, will reach $129.7 million by 2025.
With an expected compound annual growth rate (CAGR) of 6.05% from 2025 to 2033, the market is predicted to grow to $230.1 million by 2033.
According to reports by SMEs Blue Pages, a pan-African initiative promoting the Africa brand, the hibiscus industry in Africa has seen significant growth and holds substantial economic value.
Egypt is one of the continent’s largest producers, with an annual production exceeding 40,000 metric tons. Other key players in hibiscus cultivation include Nigeria, Sudan, and Senegal, reinforcing Africa’s prominent role as a major supplier of hibiscus to global markets.
Africa accounts for 20% of global hibiscus exports, with Egypt leading the way, exporting large quantities of hibiscus flowers and dried calyces to regions such as Europe, the Middle East, and North America.
Nigeria and Sudan are also key contributors, with Nigeria notably exporting significant amounts to Europe, the United States, and Saudi Arabia, according to Lawal.
Investing in Hibiscus
The Association of Hibiscus Flower Exporters of Nigeria (AHFEN) emphasized the rising global demand for hibiscus products, particularly among health-conscious younger consumers and the beauty sector.
Investors have the opportunity to capitalize on climate-resilient hibiscus, increasing global demand, the low level of mechanized farming, and the potential to elevate locally produced hibiscus beverages to meet international standards.
Olatunji Lawal suggested that safeguarding indigenous businesses from the influx of foreign investors could help increase revenue generation for the hibiscus sector.
Oshevire added that while Nigeria seeks to attract more foreign investments, it is crucial to protect local businesses and establish systems to monitor foreign investors, ensuring they contribute to Nigeria’s economy rather than repatriating profits to their home countries.
No pain, no gain
Experts have pointed out that investing in hibiscus production, processing, and exports presents significant profit potential, as the crop is easy to cultivate and can thrive across Nigeria.
Despite the expanding market, challenges remain in unlocking hibiscus’s full potential in Nigeria, particularly in areas like production methods, processing infrastructure, and export logistics.
However, with targeted investment and a focus on the entire value chain, hibiscus farming has the potential to become a highly profitable sector, greatly enhancing Nigeria’s non-oil export revenues.
