Change is happening in Africa’s FMCG industry.
As a new middle class begins to emerge with more disposable incomes, there is an increased opportunity for FMCG companies to invest in the continent. Everything is pointing towards this sector in Africa having great potential to expand. Why? Food and other necessary consumables dominate African consumer budgets – particularly in the Sub-Saharan nations. The food sector in FMCG has a large market to cater for as a result!
Current demand for FMCG in Africa
Most FMCG companies rely on operating in a low-margin environment, and they need a large market to be successful. Africa has a population of around 1 billion, but despite this, it remains pretty underserved by FMCG organisations.
The density of the continent’s population also has hindered success. FMCG companies and retailers need a constant steady flow of consumers to buy their goods on a daily basis, and thus, need to operate in an area where the market demand is big enough to fulfil this.
Likewise, the strength of a country’s agriculture and manufacturing sectors is key for success to an FMCG organisation. This is because the FMCG sector relies upon distribution channels that are predictable and efficient.
The growth of middle-class incomes can give FMCG a boost in Africa
Most FMCG companies sell products that are classed as necessities. Because of this, the average income per person is less important to FMCG retailers than it would be to retailers of luxury products. But, the trend in income levels is still important to consider, as it will establish what type of FMCG products can be sold in that specific market.
In Africa, food currently dominates the majority of African consumers’ spending. However, this looks set to change rapidly in the future as the continent experiences significant economic growth. The increased inclusion of meat and other ‘luxury’ food types presents the African FMCG sector with lucrative opportunities, as it is predicted there’ll be an increase in demand over the next decade.
African consumers are predicted to start focusing on quality improvements to their foods, such as including more meat in their diet and/or buying higher-quality branded products. That’s why it’s so important for FMCG retailers to get a foothold in this continent now so that they can benefit from the shift in African consumers’ spending behaviour.
Likewise, shopping mall experiences are proving to be very popular in certain countries, such as Ghana. The Accra Mall in the capital boasts around 25,000 shoppers per week! African consumers are already starting to favour the convenience offered by supermarket chains and shopping malls across the continent.
With Africa’s large market and the increasing rise of household income, the fast-growing FMCG sector in African looks to benefit immensely from this shift.
Bourne Recruitment can find you qualified candidates to fill your FMCG executive job roles
Our team has worked closely with UK and African-based FMCG organisations for over 20 years to find and place hundreds of candidates in executive and board-level positions across the continent.
We can help your company become more visible and connect you to potential candidates, so you can form a beneficial working relationship. If you’re interested in hiring us to conduct your executive job search within the FMCG sector in Africa, get in touch today by calling: