West of Africa Retail Market Size by Sector and Channel-pretoria-johannesburg-capetown

West of Africa Retail Market Size by Sector and Channel

The size of the West African retail market by sector and channel is an important aspect of the region’s economic landscape. Major cities such as Lagos, Accra, Dakar and Abidjan are key hubs for retail activity and serve as centres for trade, commerce and cultural exchange. The market includes sectors such as food, fashion, clothing, electronics and more, with traditional markets, modern supermarkets, shopping centres and online stores also playing an important role. The retail market in West Africa is undergoing significant change due to factors such as population growth, urbanisation, the expansion of the middle class and international retailers. These factors are driving growth and change in the region, making West Africa an ideal location for business. This growth has led to the creation of both large supermarkets and online stores, making West Africa a prime destination for retail operations.

This article examines the size of the West African retail market by sector and channel, highlighting growth trends, key drivers, leading companies and channel breakdowns.

Sector Analysis

  1. Food

West of Africa Retail Market Size by Sector and Channel-pretoria-sandton-capetown-durban-2024The size of the West African food services market reached US$5.8 billion in 2023. Looking ahead, IMARC Group expects the market to reach US$ 10.9 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.28% during 2024-2032. The food services market is growing due to the increasingly busy lifestyles and hectic work schedules of the masses and the rising disposable income of consumers. With less time to prepare food at home, people eat out or order food for delivery. Rapid urbanisation and modernization are driving demand for food services, highlighting the growing importance of these services in the region. Nestlé and the Dangote Group dominate the food and beverage sector, offering a diverse range of products through both traditional and modern retail channels.

  1. Fashion and apparel

According to Statista, West Africa’s fashion market revenue is forecast to reach US$19.25 billion by end of 2023. Data shows the sector will grow at an annual growth rate of 7.05% from 2024 to 2028. This will result in a market volume of US$7.59 billion in 2024. Fashion and apparel market is experiencing growth due to a young population and evolving fashion trends. The sector is gaining popularity through online platforms, traditional markets, and physical stores. Consumer purchasing patterns are influenced by cultural preferences and brand loyalty, with trends often influenced by global fashion movements.

  1. Electronics and Technology

West of Africa Retail Market Size by Sector and Channel-sandton-capetown-durbanAccording to Statista, the revenue in the consumer electronics market in Western Africa amounts to US$27.3 billion. Data shows the sector will grow at an annual growth rate of 5.82% from 2024 to 2028. This will result in a market volume of 2.6% in 2025. The electronics and technology market is rapidly expanding due to technological advancements and increasing consumer demand. Popular products include mobile phones, computers, and home appliances. Distribution is through specialised stores, e-commerce platforms, and authorised dealers. However, import and sale regulations vary across West African countries, impacting the availability and affordability of electronic products through import tariffs, quality standards, and certification requirements.

The retail sector is resilient despite infrastructural limitations and diverse consumer preferences. The youthful population is eager to adopt new consumption patterns, and leading companies like Shoprite, Spar, and Jumia shape the retail landscape, catering to the region’s diverse needs.

Channel Breakdown

The retail market encompasses various channels through which products are sold to consumers. Here’s an overview of the West of Africa retail market size by channel:

  1. Traditional Retail

Traditional retailing is dominant due to infrastructure issues. Traditional channels, such as small local markets, street vendors, and independent shops, offer convenience, flexible trading times, accessibility, and lower-priced products. These channels cater to consumers’ buying patterns, purchasing power, and product preferences. Due to fluctuating incomes, traditional retailers offer products that suit low buying power, such as loose cigarettes, stock cubes, single eggs, unpackaged rice, and sugar, compared to modern channels that offer complete packs.

2. Modern Retail

West of Africa Retail Market Size by Sector and Channel-sandton-capetown-durbanThe rising middle class is transforming retailing, leading to the rise of modern channels like supermarkets, hypermarkets, and shopping malls. This growth coincides with economic growth and urbanisation, attracting global retailers like Walmart, Shoprite Holdings, Auchan and more. These retailers are responding to changing economic conditions to build a captive consumer base and offset slow growth in traditional economies through strategies like licensing agreements, joint ventures, franchising, and wholly-owned subsidiaries.

3. E-commerce

West of Africa Retail Market Size by Sector and Channel-sandton-capetown-durbanThe rise of e-commerce platforms has transformed the retail landscape, providing consumers with access to a vast array of products online. E-commerce platforms offer convenience and flexibility, allowing consumers to shop from the comfort of their homes or on-the-go using mobile devices.  Leading e-commerce platforms, such as Jumia, are expanding their operations and attracting investment to capitalise on this growing market.

4. Informal retailing

West of Africa Retail Market Size by Sector and Channel-sandton-capetown-durbanInformal retailing remains important in many countries, with over 90% of the retail market in Nigeria being dominated by this form of business. It is often overlooked, but it is a significant part of unofficial national trading systems. Many products sold through modern channels are also sold through informal channels, and they can sometimes be hubs for illicit products. Companies should consider both modern and traditional retailers in their market entry strategies, as affordability is key.

Overall, whether you’re a multinational corporation or a budding entrepreneur, recognizing the West of Africa retail market size by sector and channel is crucial for navigating the region’s diverse and evolving retail landscape successfully.

Partner with Frenchside

Frenchside specialises in providing marketing translation for South African companies and build relationships with audiences. Whether it is a multilingual website localization project or a newsletter from English French, we can help you with your marketing translation project by using the best translators. Tight deadlines and complex projects don’t faze us, as we love a challenge. We’re always looking for fresh ways to make your global marketing work harder and your life easier. Contact us for a quote today.

Email: info@frenchside.co.za | Website: www.frenchside.co.za

Summary
West of Africa Retail Market Size by Sector and Channel
Article Name
West of Africa Retail Market Size by Sector and Channel
Description
This article explores the dynamic West African retail market size, analysing sectors such as food, fashion and electronics, as well as traditional and modern retail channels. It highlights the growth trends, key drivers, leading companies and channel breakdowns.
Author
Admin
Publisher Name
Frenchside
Publisher Logo

LEAVE REPLY

Your email address will not be published. Required fields are marked *