5.Non-Alcoholic Beverages
This industry broadly comprises soft drinks and hot drinks. Soft drinks include sodas, juice, packaged fruit blends, mineral water and carbonated water. Hot drinks on the other hand include coffee and tea. According to World Bank these beverages take up 7% of the average African consumer’s budget.
4.Other Edibles
11.5% of local consumer budget is spent on other edibles like margarine, chocolates, sugar and spices. Consumption of these items is higher among the middle class than the high-end and low-end consumer markets.
3.Meat & Fish
Meat and fish have been part and parcel of the African menu since time immemorial. And despite a significant diet change, appetite for animal and fish protein seems to be at an all time high with majority of consumers spending at least 20% of their budgets on them. Behind this industry lies massive opportunities ranging from agri-business, aquaculture and value addition (e.g. converting meat into sausages).
2.Vegetables & Fruits
Image/KPMG
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 basic food items is going to grow moving forward. It’s therefore not a surprise to see 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 take up the largest share of household spending on FMCG products. Gross household expenditure on cereals, grains and wheat surpassed $64.5 Billion in 2010 representing a whopping 27% of the overall consumption budget. Some business opportunities around this include: cereals supplies, milling, agri-business and value addition.
What is your opinion on this pattern? If you were to start a business today, what FMCGs would you prefer to focus on?