Preparing and eating more meals at home meant that cooking ingredients and meals saw a spike in demand when the pandemic hit Middle East and Africa in 2020. However, in recent years, including 2023, volume sales have been struggling in the face of rising costs and prices due to the inflationary global environment as well as more localised problems, such as the rolling blackouts across South Africa. From 2024, positive value and volume growth is expected in the region.
This report comes in PPT.
As in a number of markets, when disposable incomes allow, consumers are increasingly favouring healthier products in Algeria. This is seeing a growing emergence of products with a healthier positioning, such as a lower fat, salt or sugar content. It is also seeing olive oil gaining share in edible oils, as it is perceived as healthier than other oils. Increased local production of olive oil is also supporting sales of this product, as local olive oil is more affordable.
Brand owners have been facing strong competition from private label in South Africa, which increased its value share to reach 30% in 2023. Not only can private label offer value, variety and quality, but retailers like Checkers, Pick ‘n Pay, Woolworths or Spar have also been prioritising their private label portfolios in terms of promotions and shelf space.
While small local grocers still lead in many African nations, modern grocery outlets, notably supermarkets and hypermarkets, dominate distribution in cooking ingredients and meals in Saudi Arabia. This is thanks to their broad coverage of all household supplies, not just packaged food, promotional activities and private label lines, which appeal to budget-conscious households.
The South African government is planning mandatory warning labels on packaged food products that contain added sugar, saturated fats, sodium or artificial sweeteners over proposed cut-off values as part of its draft Regulations Relating to the Labelling and Advertising of Foodstuffs. The labels would have to cover at least 25% of the pack front and products with these warning labels would not be allowed to be marketed towards children.
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