Tanzania Food and Drink Report Q4 2012

There is tremendous room for growth on the consumer side in Tanzania. With incomes still low, there are potentially dynamic opportunities on offer for companies that can target the market with low-cost goods. The telecoms sector is a key example of the growth that can be achieved with the right amount of investment, particularly in distribution.

The manner in which mobile phones have caught on in Africa highlights what can be achieved on the consumer side. Tanzania’s telecoms industry is one of the region’s most competitive, with a host of big hitters jockeying for a share of the market. Our telecoms team believes that there were more than 52 mobile phone subscribers per 100 inhabitants in 2011, which is expected to rise to nearly 70 by 2016. These are phenomenal numbers, and one reason for telecoms firms' success is that they have been able to invest heavily in distributional infrastructure. In Tanzania and the wider region, getting products to the final consumer is probably the greatest challenge a company will have to overcome. There is still very little formal leverage across much of Sub-Saharan Africa on the consumer side – retail banking penetration is tiny, and formal home ownership financing is still mostly in its infancy. Much activity remains under the radar across much of the region, where the informal economy accounts for a big chunk of spending. The takeoff in mobile phones over the past decade shows that if the price is right, there are huge opportunities at mass market level, where consumers are willing to embrace new brands.

Moreover, with incomes still low across the region, there are potentially dynamic opportunities on offer for low-cost goods targeting the mass market, and Tanzania is no exception. Demand for basic essentials such as toothpaste and shampoo will grow considerably over the next few years. Again, we highlight that with internal distribution systems in terrible shape, large investments into distribution must be made.

Headline Industry Data ?? Per capita food consumption in local currency terms is forecast to increase by 25.8% in 2012. To 2016, compound annual growth of 15.5% is forecast. ?? Mass grocery retail sales are forecast to increase by 30.1% in 2012. To 2016, compound annual growth of 19.4% is forecast.

Table of contents

Chapter 1 - BMI Industry View

Chapter 2 - Business Environment

BMI’s Core Global Industry Views

Table: Core Views

Sub-Saharan Africa Food & Drink Ratings

Table: Risk/Reward Sub-Factor Ratings Q (scores out of )

Table: Sub-Saharan Africa Food & Drink Risk/Reward Ratings Q

Macroeconomic Outlook

Table: Tanzania – Economic Activity, -

Chapter 3 - Industry Forecast Scenario

Food

Table: Tanzania – Food Consumption, -

Table: Tanzania – Fish, -

Table: Tanzania – Corn Oil, -

Table: Tanzania – Dairy, -

Table: Tanzania – Cheese, -

Drink

Beer

Table: Tanzania – Beer, -

Carbonated Soft Drinks

Table: Tanzania – Carbonated Soft Drinks, -

Mass Grocery Retail

Table: Tanzania – Mass Grocery Retail

Chapter 4 - Market Overview

An Overview Of The East African Food And Drink Industry

Chapter 5 - Key Regional Industry Trends And Developments

Africa To Guzzle A Lot More Beer; Look Out For Nigeria

Chapter 6 - Demographic Outlook

Table: Tanzania’s Population By Age Group, - (‘)

Table: Tanzania’s Population By Age Group, - (% of total)

Table: Tanzania’s Key Population Ratios, -

Table: Tanzania’s Rural And Urban Population, -

Chapter 7 - Risk/Reward Ratings Methodology

Table: Rewards

Table: Risks

Weighting

Table: Weighting

Chapter 8 - BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

Chapter 9 - BMI Food & Drink Forecasting & Sourcing

Tanzania Food & Drink Report Q

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How We Generate Our Industry Forecasts

Sourcing

Related research categories

By sector: General drinks

By market: Tanzania (in Africa)