The “New Normal” for Consumer Goods in Sub-Saharan Africa

Key Findings

Value for money reigns supreme as consumers go “back to basics”

Consumers have become increasingly mindful of their expenditure and are expected to persist in seeking value for money. Essential goods such as staple foods, basic cleaning materials and vitamins and dietary supplements will take priority as consumers mitigate the long-term economic impact of Coronavirus (COVID-19) as they continue to feel the pressure of reduced disposable income.

Omnichannel retail increasingly important as consumers adapt to new ways of shopping post-pandemic

The pandemic further fast-tracked existing strong e-commerce growth. It is expected to continue its strong growth trajectory, registering double-digit growth over the long term. Heavily supported by m-commerce in a region where mobile phones are the primary means of connected to the internet, the channel will be critical in any marketing mix. However, consumers will continue to buy from traditional channels such as open markets as they meet consumers’ need for value in countries such as Nigeria and Kenya.

Permanent shifts in occasion as consumption habits change

The shift in how and where especially professionals buy and consume goods, is likely to lead to a permanent change in consumption occasions. Many consumers are expected to continue to work from home, at least partially, leading to increased hometainment and less in-store consumption. However, this creates strategic opportunities across products and services.

Increased emphasis on local production and consumption

The increased emphasis on local consumption due to lockdown regulations is expected to continue post-pandemic. Consumers are in part driving the shift as they mindfully choose local over imported goods. Furthermore, government legislation aimed at reviving and local economic stimulus coupled with the increased cost of imported goods due to currency exchange volatility will also boost local production and consumption.