As a businessman, the most important thing you need to do is understand your market. You cannot purport to be preparing for a great future if you are not familiar with the wants and needs of your target customers. That being said, today we would like to give you a bit of market intelligence regarding the top 7 fastest-moving consumer goods in Africa (FMCGs).
Why is this kind of information important? Knowing what goods consumers are looking for will make it easier to tailor your business to meet these needs as you deepen your market reach. Here is a sample the nine kinds of goods that are on the list of local consumer’s needs.
7. Personal Care
From cosmetics, fragrances, oral care, bath and shower products, and child care items, the personal care industry in Africa takes up a significant 2.8% of the average African household consumption budget. If you want to capitalize on this, consider baby diapers, hair care products, beauty products, barber shops, and salons.
6. Dairy Products
In developing countries, Kenya included, demand for dairy products is growing with rising incomes, diet changes, urbanization, and population growth.
According to the Food and Agriculture Organization of the United Nations (FAO), this offers an excellent opportunity for potential entrepreneurs to enhance their livelihood through increased production.
Dairy products gobble up 3% of household consumption expenditure.
5. Non-alcoholic beverages
This industry broadly comprises soft drinks and hot drinks.
Soft drinks include sodas, juice, packaged fruit blends, and mineral and carbonated water and ot drinks include coffee and tea. According to the World Bank, these beverages comprise 7% of the average African consumer’s budget.
4. Other Edibles
More than 11.5% of the local consumer budget is spent on other edibles like margarine, chocolates, sugar and spices. These items are consumed more among the middle class than in the high-end and low-end consumer markets.
3. Meat & Fish
Meat and fish have been part and parcel of the African menu since immemorial. And despite a significant diet change, appetite for animal and fish protein seems to be at an all-time high, with most consumers spending at least 20% of their budgets on them.
Behind this industry lies massive opportunities ranging from agribusiness, aquaculture, and value addition (e.g., converting meat into sausages) to butcher/choma businesses.
2. Vegetables & Fruits
You can never go wrong if you invest in the food business in Africa. A bulging population and increased rural-to-urban migration means demand for essential food will grow.
It’s not surprising that veggies and fruits take up 25% of the average African consumer’s budget.
1. Cereals, Grains & Wheat
The World Bank data suggests that cereals, grains and wheat comprise the largest share of household spending on FMCG products.
Gross household expenditure on cereals, grains and wheat surpassed $85.5 Billion in 2022, representing 24% of the overall consumption budget. Some business opportunities around this include cereal supplies, milling, agribusiness, and value addition.
Conclusion
No marathon race has ever been won by those who did not start the race. If you like any of the ideas discussed above and have what it takes to actualise them…then don’t wait to start… do it.