In this report, you will find the current outlook of the food retailers in Africa and the Private Label market penetration

Keep reading to find out opportunities in Africa.

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✔ Trusted, often through generations

✔ Guarantee of quality

✔ Status symbol

✔ May be more consistently available

✔ Retailers sometimes seen as price gouging

✘ Brand knowledge often limited

✘ Lots of counterfeiting in some categories

✘ Status symbol limited for basic items

✘ Brand availability varies wildly

✘ Budgets are tight so the price will win

Great news for Private Label brands! A growing opportunity to capitalise on consumers willingness to try lower-priced, quality-driven products

1. Regular supermarket shoppers are less than 5% of the population in most sub-Saharan African countries
2. The value will remain the key growth driver for the foreseeable future. But: budget imported private label often becomes premium in the market because of markups
3. Watch the development of discounters  and value retailers (e.g. Supeco, Choppies, BIM)
4. Domestic supermarket players have poor supply chains – they need proactive support

The Total Value of Grocery is the sum of the two core channels 

• Modern Grocery Retail (supermarkets, etc), and

• Traditional Grocery Retail (traditional kiosks, etc)

When Modern Grocery Retail represents 25% or more of the Total Value of Grocery, retailers can safely assume that Modern Grocery Retail is appealing to BOTH high income and middle-income consumers.

Normally, any less than 25% of the Total Value of Grocery, it tends to only be upper-income consumers shopping in a Modern Trade Supermarket. 25%+ shows that the upper income and middle-income classes are active buyers.

Which means, at 25%+ the market becomes very interesting for Private Label Manufacturers, who can target BOTH high income and middle-income consumers in Supermarkets.