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Africa Consumer Durables Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis
Africa Consumer Durables Market Overview
Africa is one of the fastest growing consumer market in the world. In recent years, its household consumption has increased even faster than the GDP. Also, the average annual GDP growth has consistently outpaced the global average. In the era of increasing population, urbanization rates, rapid spread of access to the internet and mobile phones on the continent, Africa’s emerging economies present exciting opportunities to expand its retail and distribution channel.
In fact, consumer expenditure in Africa has grown at a compound annual rate of 3.9 percent since 2010 and reached $1.4 trillion in 2015. This figure is expected to reach $2.1 trillion by 2025 and $2.5 trillion by 2030. Also, in 2030, if the Continental Free Trade Area (CFTA) is properly implemented, a single continental market for goods and services will be operational, offering corporations different points of entry to the continent and a potential market of 1.7 billion people.
GDP and Income Growth in Africa
Although the GDP fell from % .5 to 3.4 between 2010 and 2015, Africa’s overall growth is rebounding. After East Asia and Middle East, Africa is ranked third in terms of real growth. Africa have been fastest in the world in increasing income and labor productivity. But, in terms of purchasing power parity, sub-Saharan Africa’s growth rates are less impressive, with per capita income levels at less than one-third that of any other world region. Africa has shown notable gains since about 2000, but the global mean level of income increased far more rapidly and now stands at approximately four times that of the African mean.
Nigeria is the largest consumer market in terms of total volume in Africa, worth $370 billion in 2013, followed by Egypt, South Africa, Algeria, Angola, Morocco, Sudan, and Kenya. At the same time, the fastest-growing market is Angola, where expenditure increased at a compound annual growth rate (CAGR) of 34 percent between 2000 and 2013 alone. Increased spending among households in Nigeria will likely amount to nearly $200 billion between 2015 and 2025, or 30 percent of Africa’s overall consumption growth over this period.
Africa Consumer Durables Market Segmentation
On the Basis of Product Type
Speakers and Audio Equipment
On the basis of Distribution Mode
On the Basis of Distribution Channel
Specialty stores and others
On the basis of Target Audience
Suppliers and Distributors
We conducted interviews with the Consumers (B2C Vs B2B), Home Appliances Manufacturers, Brands, End User Industry Verticals, Contractual Suppliers, Product Managers, Consultants, Decision Makers, VPs, Executives, Sales Managers, Regional Sales Head, C-level Executives, etc.
Key Benefits: Africa Consumer Durables Market Outlook, 2019-2035 (Edition 2021)
The report includes Africa Consumer Durables Market Manufacturers, Contract Manufacturers & Brands Outlook (Market Competition & Global Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers Industry Insights (Future Trends & Forecast Data), Trade Data (Exports and Imports), By Africa Consumer Durables Market Type (Manufacturing & End User Industry Outlook), End User Industry Analysis (B2B Vs B2C), Competitive Intelligence, Opportunity Analysis
Market Data : Market Size (USD Billion), Market Share (%), CAGR (%), Y-O-Y Growth Rate (%) of Africa Consumer Durables Market Industry and further it bifurcated into Countries, 2019-2035
Sales Data of Africa Consumer Durables Market : By Each Packaging Type, By End Users, By Manufacturers Type, By Application, By Countries, (By Volume & Value), 2019-2035
Manufacturing Outlook of Africa Consumer Durables Market : Manufacturers Outlook, Revenue & Market Share of Manufacturers, Manufacturing Capacity, Operational Margins, Contract Manufacturers & OBMs Outlook, etc., 2019-2035
Brands Outlook : Revenue Share (%) of Manufacturers By Packaging Type, Market Positioning, Ranking Analysis, Product Portfolio, Competitiveness, Regional Presence, No. of Products, Investments, Partnerships & Collaborations, Mergers & Acquisitions, etc., 2019-2035
Africa Consumer Durables Market End User Outlook : End User Preferences of Packaging & Brands, End User Spending, Average Spending Power, Adoption Rate (%), Penetration Rate (%), Green Initiatives, Govt. Regulations, etc., 2019-2035
Market Dynamics : Growth Drivers, Challenges, Opportunities, Trends, SWOT Analysis, Porter's Five Force Model, PESTLE Analysis, etc., 2019-2035
Trade Data of Africa Consumer Durables Market (Export & Import) : By Each Segment, By Major Destination Countries (By Value & Volume), 2019-2035
Supply & Demand Analysis : By Africa Consumer Durables Market Type, End Use Verticals, By Countries, 2019-2035
Target & Potential Markets : By Major Countries & Industries
Detailed Outlook : Africa Consumer Durables Market Industry Analysis : (Manufacturers, Raw Material Outlook, New Products, Ongoing Researches, End User Analysis, Manufacturing Models, Demand Analysis for Each End User Industry, Govt. Norms, Market Dynamics etc.)
Population growth and Urbanization: Africa is the second-largest and second most populous continent on earth with an estimated population in 2016 of 1.2 billion people. Analysts estimate that over the next few decades the proportion of the population living in cities has increased from 40 percent to more than 60 percent. By 2050, roughly 800 million more people will be consolidated in Africa’s urban regions. This number of population migrating from rural to urbanized areas are signaling vast potential to consumer durable market.
The growth of the middle and upper classes: Not only population growth is tremendous in Africa but also the income growth is there which is creating the potential for consumers to have the buying capacity towards the consumer durable market. One in five of the world’s consumers will live in Africa by the end of the next decade, and more and more of these people will fall into the category of middle class. Hence, Special attention should be paid to the size of the middle-class and its purchasing power.
ICTs and formal markets: The rapid diffusion of ICTs in Africa over the past decade has facilitated access to consumers in new and varied ways. Africa is currently the fastest-growing mobile telecom market in the world, averaging roughly 30 percent increase in mobile phone connections per year, and recently overtaking Latin America to become the world’s second-largest mobile market behind Asia. At present, informal markets overwhelmingly dominate the scene for private consumption in Africa. The modern trade sector is largest in South Africa and Angola, yet formal retail still accounts for just 39 percent and 34 percent of shopping visits in 2015.
Technology penetration and the purchasing power: Allowance to accept the innovations and technology to come into existence among people of Africa is increasing with a significant rate which is influenced by the purchasing power of African consumers. Thus, the major players are targeting Africa to flourish their market at.
Political Instability and Conflict: Wars and authoritarian government does affect the businesses adversely in many countries. According to world freedom indexes, which measure political and civil liberties, out of 54 nations in Africa only 10 are free while 22 are not free and rest 22 are partially free.
Linguistic diversity and low literacy rate: complicating consumer communications is the continent’s low literacy rate of 62 percent. In some countries, including Burkina Faso and Niger, the literacy rate is below 30 percent. While South Africa has 11 official languages, Nigeria has only one language, English, but Nigerians speak 500 local languages. To communicate effectively with African consumers, company needs to deliver their message in plethora of languages. Hence, language is a barrier in Africa foe the consumer durable market players.
A fragmented retail market: Africans prefer buying the things and especially groceries from neighborhood kiosks or convenience stores in many countries, the percentage of groceries bought in supermarkets is in the low single digits. South Africa is an exception as the grocery sales from supermarkets estimated 75%.
Poor Infrastructure: Traveling from one place to another in Africa is quite expensive and difficult because only one-third of Africans live within two kilometers of a paved road that is usable year-round. Also, around 70% of the population in Africa has no access to electricity which is a major challenge to Consumer durable industry.
Due to entry of the multinational companies like Walmart, the competition is increased significantly but, Africa’s market is still less saturated and developed than that of other countries, thus it gives an opportunity for growth across the continent. In the continent as a whole, already 11 countries account for roughly 80 percent of total wealth and consumer spending: South Africa, Egypt, Nigeria, Morocco, Algeria, Sudan, Angola, Kenya, Ethiopia, Tunisia, and Ghana. All of these countries have exhibited marked growth in household consumption, particularly in the post-2005 period, although growth in Nigeria, Egypt, and South Africa has significantly outpaced all other markets.
From the perspective of international producers and retailers, therefore, the appeal of Africa’s consumer market already exists, and several ongoing developments on the continent bolster the region’s growth potential in the coming years. Production of consumer goods in Africa remains cost-competitive when compared to other regions. Studies of African consumers show that they tend to be entrepreneurial, ambitious, well-informed, and disproportionately heavy users of the Internet and mobile technology. Africans are also more likely to prefer international products than in markets such as China and India. African consumers also appear to have more brand loyalty than their Asian counterparts, preferences that are commonly shared within families and social groups, and they are willing to make sacrifices for more durable, high-quality products, even when doing so requires saving and pooling resources.
Samsung India Electronics
COVID-19 impact on "Africa Consumer Durables Market"
The report analyses and includes complete detailed chapter of 50-70 pages about the short term & long terms impact of COVID-19 outbreak on each segment of "Africa Consumer Durables Market" along with government measures to support the sector. It also showcases the current market landscape during COVID, impact of the virus on leading companies, expected demand schedule and supply chain in the industry and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.