FMCG sector shows signs of recovery in 2024
According to new research by SumsureIQ, a top market and economic research agency and consultancy in Ghana, Ghana’s Fast-Moving Consumer Goods (FMCG) sector is showing signs of improvement in 2023 and 2024, despite a difficult landscape characterised by cost-of-living crises and constant inflationary pressures.
Over the years, SumsureIQ research findings have been published as part of the SumsureIQ’s Quarterly Brand/Manufacturer Performance Tracking Index.
The research findings show that in 2024, FMCG volume sales grew by about three per cent compared to 2023. This increase was mainly driven by food, which accounted for about 42 per cent of the rise. This was followed by non-alcoholic beverages, which accounted for about 34 per cent of the increase, alcoholic beverages, which accounted for 17 per cent, and non-food, which accounted for just seven per cent of the increase.
In terms of value, FMCG sales went up by about seven per cent in 2024 compared to 2023.
The main driver of this increase was food, with about 54 per cent in value increase, followed by non-alcoholic beverages, with about 29 per cent of the rise. Then, alcoholic beverages, with 16 per cent, and non-food, with just one per cent.
These results are further corroborating evidence with previous SumsureIQ research results, that the average living standard of the Ghanaian consumer declined in 2024 compared to 2023 as more monies were spent on food but actually, fewer volumes were consumed compared to the other FMCG products with little of the hard-earned disposable incomes left to spend on other life necessities.
These results indicate that, although inflation levels are dropping comparatively in 2024, they are still high and increasing steadily. On average, the impacts of the cost of living pressures did not ease or reduce in 2024 compared to 2023.
However, according to SumsureIQ, the volume of consumption in 2024 increased or improved compared to 2023.
This improvement is good news for all Ghanaian consumers. It shows a potential turning point in the country's average living standard deterioration, which has been induced by relatively high levels of inflation, the accompanying cost-of-living crisis, and the struggling cedi against other foreign currencies.
One of the key trends highlighted in this research and previous SumsureIQ research findings is the shift in consumer behaviour towards the spending on and consumption of food and other essential for life categories.
The SumsureIQ research finds that consumers are purchasing progressively more quantities of items in the medium pack size range on average.
These items, in most cases, have a lower average price per standard base weight and are affordable. Additionally, consumers see them as better value-for-money propositions.
This shift suggests that while high levels of inflation and the consequential cost of living crises have caused a reduction in the average standard of living, the rate of inflation is now fairly stable with minimal fluctuation, hence, consumers make more calculated purchasing decisions.
Further SumsureIQ research findings show that in 2024 compared to 2023, consumption of Food categories increased by about 2.4 per cent in volume and seven per cent in value.
Some food categories that contributed to this growth were Edible oil, Food Seasoning/Taste Enhancers, Tomato Mix, Milk, Pasta, Biscuits, and Yoghurt. The research also noted increases in the consumption of non-alcoholic beverage categories by about 3.9 per cent in volume and nine per cent in value in 2024 compared to 2023.
The categories driving this growth were water, powdered beverages, tea, plant-based and milk. Likewise, there were increases in the consumption of non-food, and alcoholic beverages categories in 2024 compared to 2023. According to Dr Erasmus L Owusu, the Founder and CEO of SumsureIQ, “the latest research findings proffer a detailed view of the potential of Ghana's FMCG markets recovering within the recovery of the Ghanaian economy as a whole.
However, these recent improvements remain tenuous and are susceptible to global economic shocks and exchange rate fluctuations”.
Data Collection
SumsureIQ is a full market and economic research agency and consultancy based in Ghana. We collect over 100,000 lines of data each month on over 70 categories and segments of Fast-Moving Consumer Goods (FMCG) in Food, Non-Food, Alcoholic and Non-Alcoholic Beverages across all 16 administrative regions and 10 channels/store types, including Modern Trade and Petrol Marts in Ghana. SumsureIQ uses robust statistical and econometric methodologies to estimate the market sizes of each category/ manufacturer/brand. It also estimates a myriad of analytical KPIs.
This data shows that SumsureIQ has a complete view of the FMCG retail market structure, volume of consumer consumption and consumer behaviour in Ghana. — Credit- SumsureI