Euromonitor’s recently released Markets of the Future reports reveal the next eight Sub-Saharan African consumer markets with the brightest growth prospects – Angola, Côte d’Ivoire, Ethiopia, Ghana, Mozambique, Senegal, Tanzania and Uganda. These markets had a combined consumer spending of US$192 billion in 2013 and a combined population of 289 million. Between 2013 and 2030 their GDP will increase by 172% in real terms compared to 150% in Sub-Saharan Africa as a whole.
Continue reading "Africa's Markets of the Future" »
One of the key strategies for success in emerging markets is to adapt to local conditions. This could mean redesigning products and services from the ground up or merely tweaking products or packaging to meet consumers’ needs. With an ever expanding list of big-name failures in emerging markets, and tighter economic conditions in some countries, a local strategy is crucial to safeguard success.
Generalise at your peril
The importance of this can be amply seen when comparing markets which on the face of it may seem to have lots in common. For instance Bulgaria and Romania are two emerging Eastern European countries, with almost identical per capita expenditure – but the data behind this headline figure reveals some interesting differences between the two countries. The same can also be said of Colombia and Peru, and many other not-so-similar markets.
Source: Euromonitor International from national statistics/Eurostat/OECD/ UN
Continue reading "A Local Strategy in Emerging Markets" »
Women’s fragrances have traditionally ruled the market ahead of men’s, including in terms of product availability. However, absolute growth forecasts reveal that emerging markets like Mexico and Argentina will generate more value in men’s fragrances over 2013-2018. This indicates an opportunity for industry players to step up men’s variety, where prospects compare well with those of women’s. Middle Eastern markets, essentially Saudi Arabia and the UAE, will lead in premium unisex fragrances.
Continue reading "Gender Influences Fragrances Prospects in Emerging Markets" »
Analyst Insight by An Hodgson - Income and Expenditure Manager
A comparison of all consumer markets in terms of their expected consumer expenditure annual real growth in 2014 reveals some interesting fast-growing markets that are not among the usual major emerging markets (such as the BRICS and the MINT). Of the top five fastest growing consumer markets of 2014, Malawi and Sierra Leone are somewhat surprising entrants while Turkmenistan and Saudi Arabia are fast-growing markets with sound fundamentals that can offer significant opportunities for consumer goods companies. Mongolia is also a market with promising prospects, but its small population restricts meaningful market expansion.
Top Five Fastest Growing Consumer Markets: 2014
Source: Euromonitor International from national statistics/Eurostat/UN/OECD
Note: Data are forecasts
Continue reading "Top 5 Fastest Growing Consumer Markets in 2014" »
It’s dangerous to group all emerging markets into one convenient basket, even within a region their prospects vary dramatically. Not all are suffering from a slump, but equally not all are dynamic, fast-growing economies. In a time of heightened geopolitical tensions, and with risks to the global economy seeming to increase on a daily basis, the devil is in the detail.
Bright stars include smaller emerging markets such as Turkmenistan, Laos, Rwanda and Cambodia. India is also seeing something of a turnaround with growth expected to come in at 5.4% in 2014 and 6.7% in 2015 supported by an upturn in business confidence following the general election, lower commodity prices and policy reform. Bangladesh and Nigeria are also expected to put in strong performances.
Real GDP Growth in Selected Emerging Markets: 2014-2030
Source: Euromonitor International from national statistics/Eurostat/OECD/UN/IMF
Continue reading "Emerging Markets are not Shorthand for Doom or Boon" »
Analyst Insight by Oru Mohiuddin - Senior Beauty and Personal Care Analyst
The fact that its forecast 4% CAGR will make the Middle East and Africa the third fastest-growing region in percentage terms between 2013 and 2018, accounting for nearly 10% of global growth over this period, is good news for beauty manufacturers. However, the question is whether it will be better news for local businesses or multinational players, as we are now seeing a growing tussle between the two camps? Despite the attractiveness of the market, it is not a straightforward situation for Western beauty players as there are a number of inherent challenges that need to be grappled with to make their ventures a success.
Continue reading "Middle East and Africa - Local Beauty Players Set to Claim a Share of the Pie" »
Event: ATA Conference
Dates: November 11-16, 2014
Location: Kampala, Uganda
Description: ATA's signature event in Africa provides a networking, learning and agenda-shaping platform for the most diverse group of tourism industry stakeholders of any travel industry event on the continent. The event addresses timely industry topics, offers a line up of educational and professional development opportunities and showcases the host Destination’s newest products and services. Delegates also have the opportunity to participate in ATA’s Young Professionals Program forum, a tourism ministers’ roundtable, business-to-business and networking events, an African Bazaar, networking events, host country day(s), gala dinners and pre- and post- country tours.
Continue reading "Euromonitor to Speak at ATA Conference 2014" »
Sub-Saharan Africa’s five largest economies: Nigeria, South Africa, Angola, Ethiopia and Ghana accounted for 41% of the region’s population and 71% of its GDP in 2013. Four of the five, with the exception of South Africa, are forecast to experience strong economic growth in the coming years.
Download Data Highlights Now
Continue reading "Special Report: Sub-Saharan Africa’s Top 5 Economies" »
An escalation of geopolitical tensions in the Middle East, Libya and Ukraine will continue to add risks to the global oil markets, although oil prices have been largely stable since 2013, owing to a glut in supplies and a weaker-than-expected growth in demand. Global oil prices are an important economic indicator for businesses and consumers, as it affects inflation, households’ purchasing power, and industry’s production costs, thus having far-reaching implications for economic growth prospects.
- Regional political unrests have been on the rise since early 2014, with growing tensions from Iraq, Syria, the Gaza strip, Libya and between Russia and Ukraine. This will fuel the risk of disruptions in global oil supplies, as the Middle East and Russia are among the world’s largest oil producing countries/regions. The Middle East made up about one-third of global total oil production in 2013, according to BP Amoco;
- Nevertheless, global oil prices have remained subdued in the first half of 2014, driven by rising production and flat oil demand. The average spot price of Europe Brent crude oil stood at US$107 per barrel in July 2014, representing a month-on-month decline of 4.4%;
- The USA’s oil production capacity rose to 10.0 million barrels per day in 2013, soaring by 47.5% since 2008, due to a surge in shale oil extraction. Saudi Arabia is also extracting more oil to offset shortfalls caused by production disruptions in some countries in the region. Meanwhile, growth in oil demand has slowed, as a result of weaker-than-expected economic data from the eurozone and the USA in the first half of 2014;
- However, the outlook for global oil prices in the short term will continue to depend largely on geopolitical situations in the Middle East, North Africa and Ukraine, as well as on growth in global oil demand. A spike in global oil prices will affect economic growth prospects, reducing consumers’ purchasing power and putting downward pressure on company profits.
Continue reading "Special Report: Rising Geopolitical Tensions Counter Ample Oil Supplies and Impact Global Prices" »
Analyst Insight by Carrie Lennard - Business Environment Manager
Sub-Saharan Africa is home to some of the world’s most corrupt economies: while Botswana is the highest ranked at 30th in the Corruption Perceptions Index 2013 out of 177 economies, many others such as Kenya rank over 100. While some such as Nigeria are experiencing declines in their corruption levels, many others are improving: Rwanda for example rose from 103rd in 2008 out of 180 countries to 49th in 2013. Because corruption levels are strongly linked to economic stability, foreign direct investment inflows and government spending in areas such as education, this is contributing to a significant increase in average per capita consumer expenditure in markets where corruption is improving. This will boost long term prospects for consumer goods companies.
Corruption Perceptions Index Rankings in Selected Sub-Saharan African Economies: 2008/2013
Source: Euromonitor International from Transparency International
Note: 2008 rankings are out of 180 countries, 2013 out of 177 countries.
Continue reading "Improving Corruption Levels in Africa Boosting Long-Term Consumer Market Prospects" »