From 2021 to 2022, there has been an overall drop in demand for food items by 5 points, with most significant drops in Cheese and Chocolates & Sweets.
Overall demand for food items in Tanzania dropped across the years of 2021 and 2022. Our Kasi Insight Retail Demand Index in Tanzania – Food conducted between April 2021 through to June 2022, is a measure of consumer demand for consumer goods such as food, beverages, etc. The index ranges from a low (-0.25) to a high value (+0.25), a low reading means the categories are not in demand while a high value means there is too much demand for the product. The Tanzania food index demonstrates that there has been an overall drop in demand for food items by 5 points between the years of 2021 and 2022. This is as a result of the lasting impacts of the pandemic, as well as the current inflation rates, which have lowered consumer spending for many.
The items with the most significant drop in demand are chocolate/sweets and cheese. Demand for chocolate dropped by 15 points between 2021 and 2022, closely followed by cheese which saw a drop in demand by 14 points between the same years. Other items also saw a notable drop in demand; namely, frozen foods, cereal bars and biscuits, chips and other snacks.
Younger consumers driving the drop in demand for Cheese and Chocolate & Sweet food items
Millennials and Gen Z are the major age groups where this drop in demand is evident. On average demand for the 5 food items mentioned above, dropped by 16 points for Millennials and 9 points for Gen Z. Overall, Millennials saw a significant drop in demand across all 5 food items while for Gen Z, some food items such as cheese, biscuits, chips and other snacks did not see as significant of a drop in demand. The most noticeable drop in demand for Millennials was for cheese (-18 points) and chocolates/sweets (-17 points), while for Gen Z chocolates/sweets and cereal bars (-14 points).
Sales and promotions can bring back younger consumers
Brands producing these food items (especially chocolates/sweets and cheese) should take note of this trend, especially given the current inflation rates impacting consumer priorities when shopping for food items. Millennials and Gen Z are more susceptible to the higher inflation rates and are likely presenting a lower spending rate in comparison to older age groups. Hence, these Millennials and Gen Z are likely to prioritize spending on essential food items over non-essential food items. Brands should therefore look to promotions and sales to encourage an uptake in the food items and thus the demand for these products.
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