Kenyans consumed more Fast Moving Consumer Goods (FMCG) in the first half of 2024 than any other other products as inflation rates stabilised to lowest levels due to low fuel prices and dollar stability.
A report by NielsenIQ Data Measurement for 2024 (a consumer intelligence company) released on Thursday revealed petroleum jelly products recorded the highest demand, recording an 8.9 per cent growth in demand during the first half of the year.
Meanwhile, demand for cooking oil fell by 8.4 percent during the period under review with the report stating that Kenyans are particularly keen on quality, placing a premium on buying quality products.
"It is therefore clear that consumers' need for value comes top of all their other needs which is evident by categories such as dairy and skincare. Some of the shopping behaviors and habits highly adapted this year for most consumers include at least 42% of them comparing prices between different brands before shopping and 24% taking time to shop around different stores unlike a year ago," reads the report.
Other products that recorded a high demand growth in the first half of the year include chocolate beverages which recorded a value growth of 66 per cent. Toilet soap, fabric softener recorded a decline in growth of 20% and 24% respectively.
"Private Label products continue to deliver on consumer’s search for better value with a growth of 46% in value sales versus growth a year ago by region because of factors such as pricing," reads the Nielsen report.
Compared with 2023, according to the Nielsen report, most categories grew in value. Some of the products that recorded a growth in demand include dairy items that saw a growth of 3.7% and Liquid UHT milk that saw a growth of 4.5%.
Further, according to NIQ’s mid-year Consumer Outlook for 2024, at least 7 in 10 consumers have switched brands due to financial constraints.
Meanwhile, 47% of Kenyan consumers stared they are in a worse financial position this year compared to 34% of global consumers.
This, the research company says is 13% higher than the global score.
“As we move into the latter half of the year, manufacturers should continue to innovate and meet consumer demands by focusing on value and price comparisons. Leveraging shopper-centric decisions and value approaches will remain crucial, along with encompassing strategies to effectively reach consumers,” Faith Wanderi, NIQs Managing Director for East and West Africa stated.
This comes even as The National Treasury on Wednesday projected that Kenya's economy will grow by 5.5 percent in the financial year 2024/ 2025.
