Fast Moving Consumer Goods (FMCG)
Despite Africa having a population of around one billion, the continent remains relatively under-served by FMCG companies.
The density of the population is another important point to consider. FMCG retailers need a steady flow of consumers purchasing their products on a daily basis, so they have to operate in a local market with a large enough size.
By 2025, the UN expects there to be 93 agglomerations in Africa of at least one million, of which 12 are forecast to have a population of five million or more. Nigeria accounts for around a quarter of these (in terms of the number of agglomerations, not the population size).
Informal markets dominate food retail at present. This should slowly start to change as the number of shopping malls rise, and consumers increasingly prefer the convenience that is offered by one-stop shopping at supermarkets.