Understand the state of the FMCG industry in the Middle East and Africa
At the close of Q1 2023, the common trend experienced in the Middle East and Africa (AME) region is the ongoing impact of inflation on consumer behavior and buying patterns. This trend is particularly evident in countries like Lebanon, Egypt, and Morocco, where FMCG baskets have witnessed substantial value gains, accompanied by volume growth ranging from 3% to 8%. Conversely, markets such as the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) have experienced an average price increase of 8%, while volume consumption remains stagnant. These observations highlight the growing consumer tactfulness in the face of inflationary pressures as individuals strive to stretch their baskets as far as possible.
The prevailing lack of confidence regarding personal finances and the squeeze on disposable income are expected to impact demand throughout 2023. In line with global trends, AME shoppers are no exception to feeling the constraints of a recessionary environment. Consequently, shoppers are adopting more meticulous grocery planning approaches and actively seeking opportunities to save money, whether through increased reliance on promotions or by switching to alternative lower-cost brands. As a result, a highly competitive environment is set to emerge, posing challenges for both manufacturers and retailers alike.
Leverage data insights to stay ahead
To stay ahead in today’s competitive market, companies must leverage data and insights to gain a deeper understanding of their customers. By analyzing consumer behavior, optimizing supply chains, and implementing targeted marketing and pricing strategies, businesses can adapt to changing market conditions and stay competitive in the long run. With the ability to pivot quickly and effectively based on data-driven insights, companies can drive sustainable growth and maintain a competitive advantage in their industry.
The Middle East and Africa edition of NielsenIQ’s FMCG Pulse report provides the Full ViewTM of the FMCG landscape, including manufacturers’ trends, market-level data, and insights to help you strategize in 2023
Download the report and stay informed, adaptable, and primed for success in the dynamic FMCG market.
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