With the impact of inflation and currency volatility in Africa, food and beverage brands are under pressure to meet the needs of increasingly cost-conscious consumers. Consumers are making adjustments to their spending habits, with many opting for essential, budget-friendly options. According to a 2024 report, the African food and beverage industry is valued at over $313 billion, but growth may stall if brands fail to adapt to the new consumer focus on value and affordability.

Current Economic Realities Affecting Consumer Behavior Many African consumers are facing a decline in purchasing power due to rising food costs. In South Africa, for instance, food inflation rose by 7.3% in early 2024, forcing consumers to choose cheaper alternatives and private-label brands. Consumers are increasingly opting for budget-friendly products or buying in bulk to stretch their budgets. Even higher-income consumers are adopting cost-saving measures like shopping for deals or waiting for promotions.

Food and beverage prices in Africa have risen by 14.4% in the last year, pushing affordability to the forefront of consumers’ minds when making purchasing decisions. This shift has also fueled a growing preference for private-label products, with 30% of African consumers now opting for these more affordable alternatives over well-established brands. The economic strain on consumers’ wallets has made it increasingly clear that brands need to adopt a more adaptable approach if they want to remain competitive.

In response, brands can no longer rely solely on traditional brand loyalty or high-end offerings. Instead, they should embrace promotions, bulk-buying incentives, and creative pricing strategies.

Strategies for Brands to Drive Value and Affordability

  1. Smaller, Affordable Packaging: One effective approach for brands is to introduce smaller packaging sizes at lower price points. Offering smaller quantities of essential items like cooking oil, flour, or beverages ensures that even consumers with limited budgets can continue purchasing from the brand. This approach, known as “sachet marketing,” has been successfully adopted by brands such as Unilever and Nestlé in several African markets.
  2. Private Label Expansion: Private label products have witnessed significant growth across the continent as consumers seek affordable alternatives. Shoprite, one of the leading supermarket chains in Africa, has capitalized on this by offering a wide range of private-label products that appeal to price-conscious consumers without compromising on quality. Brands can explore partnerships with large retailers to produce cost-effective private-label options that meet consumer needs while maintaining a presence in the market.
  3. Value Meal Combos and Discounts: Another opportunity lies in offering value meal combos that provide consumers with affordable and filling meal options. Fast food outlets and beverage companies like Coca-Cola have seen success with “meal deal” strategies that bundle drinks, snacks, and full meals at lower prices than if purchased separately.
  4. Innovative Product Lines for Health-Conscious Consumers: Even as they look for value, many African consumers are also prioritizing health, with 45% of Gen Z choosing functional foods and beverages that offer additional health benefits. Affordable, healthier product alternatives—such as low-sugar drinks or plant-based snacks—are likely to resonate with both budget-conscious and health-focused consumers.

By making it easier for consumers to purchase in bulk, brands can align themselves with the rising trend of buying essentials in larger quantities to mitigate future costs. Equally, introducing smaller, more affordable product sizes allows brands to cater to the everyday realities of cash-strapped consumers. This approach doesn’t just help brands stay afloat during difficult times but also builds goodwill and long-term loyalty among consumers.

Ultimately, brands that adjust to the shifting consumer landscape by focusing on affordability and value are more likely to forge stronger connections with their customer base. This is especially true if they can offer healthier options at accessible price points, ensuring that they meet not just immediate needs but also the evolving priorities of African consumers as they navigate increasingly challenging economic conditions.