The original article was published by NIQ. You can find the article here.
According to NielsenIQ Retail measurement data for 2023, inflationary pressure was the main driver of FMCG markets in Nigeria. The highest value increase came from skincare, baby care, personal care, home care, and beverages (alcoholic and non-alcoholic). Let’s take a deeper dive into quarterly analysis for FMCG by looking at the market trends.
In Q1, total FMCG grew in value by 16%, which was driven mainly by home care, personal care, skin care, and ambient food, which led to a volume drop of 4.2%. Household consumption spending during this period dropped due to the cash crunch effect.
In the second quarter of the year, FMCG grew by 15%. Personal care grew the most during this period, and volumes dropped the most this quarter, by 4.9% in the year. Moving on to the third quarter, FMCG value growth further went up by 19%, driven by price increases, and volumes also went down slightly, driven by baby care, personal care, beverages, home care, and dairy.
The last quarter of 2023 saw FMCG value growth going up by 22% while volumes dropped marginally by 0.9%, the slowest in the year. The rising cost continues to halt volume growth, causing categories to decline, while we see that consumers are rationalizing their purchases and frequency by spending more for less.
“Moving into 2024, manufacturers and retailers must continue to innovate their products,” comments Faith Wanderi, NIQ Managing Director for East & West Africa. “They must explore better value-for-money options or offerings that can still meet the needs of the already-stretched and challenged consumer, who has little or no extra income to spend.”
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© 2024 Calleo Solutions (Pty) Ltd. All Rights Reserved.