The COVID-19 pandemic has disrupted the consumer goods market in Sub-Saharan Africa, with recovery expected to take place over time. Consumers expenditure has been negatively affected, as value seeking consumers shift to essential products. The acceleration of e-commerce penetration is expected to continue over the long-term as shifts in consumer behaviour become part of the ‘New Normal’.
This report comes in PPT.
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.
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.
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.
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.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.See All of Our Definitions
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