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Penetration is key to unlocking growth in AME

19/07/2023

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Penetration is key to unlocking growth in AME

For the first time ever, Kantar Worldpanel has created a ranking of the Most Chosen FMCG Brands in Africa & Middle East (AME). Brand Footprint examined 3,800 brands in eight markets in the Africa & Middle East region to discover the secrets of brand resilience. Despite local brands outpacing global brands in growth, investment in the region is vital as it is driving the growth of some global brands.

 

Consumers are spending more but buying fewer brands

Competition is fierce in FMCG across AME with 450 million more brand choices. However, our analysis has revealed that although shoppers are spending 12.5% more, they are buying fewer brands. This is in contrast to what is happening in other countries around the world and where spend rose only by 4.8% globally.

 

Small and medium brands are winning

Brand loyalty is high in the region with brand frequency up 12%. Local brands dominate shoppers’ baskets. Our data from the last three years shows that local brands have gained importance at the expense of global brands and in 2022 Consumer Reach Points (CRP) growth for local brands was almost quadruple that of global brands. Small and medium brands are winning and have grown mainly through increased penetration, while large and super brands are growing from both penetration and frequency.

Watch our webinar on demand where we share more insights to help you build a deeper understanding of consumers in Africa and the Middle East and reveal the winning strategies to grow your brand in the region. Get in touch with our experts for further information. 

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Idriss El Ganari

General Manager Africa & Middle East, Worldpanel Division, Kantar

 

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