Report Coverage
This report focuses on the wholesale and retail of food in Ghana and includes information on the state of the sector, major players, corporate actions and developments. There are profiles of 10 companies including South African companies Shoprite and Massmart, international players such as Unilever, distributors such as Gold Coast Matcom and local companies such as PZ Cussons Ghana and Melcom.
Introduction
This report focuses on the wholesale and retail of food in the Republic of Ghana, a country that experienced rapid economic growth from 2010 when it began extracting oil from large offshore reserves. However, this growth has been tempered recently by the energy crisis, depressed commodity prices, long term macroeconomic imbalances and coronavirus. Many international retailers view Ghana as a gateway to a larger West African market of more than 260 million people. Although most food is still purchased at traditional markets, there is increasing demand from a relatively large and largely untapped market for the convenience and variety offered by formal retail and supermarkets. The wholesale and retail industry in Ghana is dominated by businesses that are owned by companies from India, Lebanon, and several European countries, while South African companies have been increasing their market share due to their country’s bilateral trade promotion with Ghana.
Strengths
• Economic growth to average 4% between 2021-2023.
• Ghana is viewed as a gateway to West Africa’s consumer market.
• Ghana’s economic performance in recent years places it among Africa’s 10 fastest-growing economies.
• Government support and incentives policy to attract foreign direct investment.
Weaknesses
• Dominance of informal market means economy is mainly cash driven.
• Electricity cuts.
• Perception that modern retailers’ products are expensive
• Production costs of food are high. Many inputs must be imported which drives costs higher.
• Weak and unstable currency.
• Weak purchasing power.
• Working capital and long-term financing are difficult to procure and interest rates are high.
Opportunities
• Coronavirus may lead more people to modern retailers rather than traditional markets for hygiene purposes.
• Increasing use of online and mobile platforms for shopping and payments.
• Middle class incomes are rising and there is higher demand for premium products.
• Older customers are seeing the benefits of easy to make store-bought staples compared to those traditional staples that take longer to prepare.
• Unmet demand for quality products and formal retail space have not been exploited outside the saturated major cities.
• Younger demographic appetite for pre-packaged snacks and quick/easy to make meals.
Threats
• Ongoing threat of new waves and variants of coronavirus.
• Increase in poverty levels in 2021.
• Many businesses have supply chains oriented towards more entrenched trading partners such as European, South African, and Asian exporters.
Outlook
Ghana’s economic growth is expected to average 4% between 2021 and 2023 and the retail and food markets remain highly unsaturated outside the major cities. Despite its recent economic woes and the impact of coronavirus, Ghana is still viewed by many analysts as a preferred destination for international trade and investment in the West African sub-region. Urbanisation continues to be a major driver for modern retailing while the growing middle class has stimulated the demand for popular fast-food brands, and the convenience of some easy-to-make staples such as maize and cereals is attracting more traditional shoppers to modern retailers. \r\n\r\nThe pandemic has resulted in Ghanaians changing their shopping habits and embracing the concept of online food delivery and the buying of groceries online. The pandemic also pushed entrepreneurs and informal sellers to use mobile money payment methods rather than cash. This means that to thrive and remain competitive in the Ghanaian wholesale and retail food value chain, formal and informal retailers will need to embrace ecommerce and online shopping. \r\n
Full Report
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Industry Landscape
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Historical Reports
The Wholesale and Retail of Food Industry in Ghana 2017-06-27
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View Report Add to CartThe Wholesale and Retail of Food Industry in Ghana 2015-12-15
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View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | COUNTRY PROFILE | 1 |
2.1. | Geographic Position | 3 |
3. | DESCRIPTION OF THE INDUSTRY | 4 |
3.1. | Industry Value Chain | 6 |
4. | SIZE OF THE INDUSTRY | 7 |
5. | STATE OF THE INDUSTRY | 10 |
5.1. | Local | 10 |
5.1.1. | Trade | 14 |
5.1.2. | Corporate Actions | 14 |
5.1.3. | Regulations | 15 |
5.2. | Continental | 17 |
5.3. | International | 19 |
6. | INFLUENCING FACTORS | 21 |
6.1. | Coronavirus | 21 |
6.2. | Economic Environment | 22 |
6.3. | Rising Input Costs | 22 |
6.4. | Technology, Research and Development (R&D) and Innovation | 23 |
6.5. | Government Incentives and Support | 23 |
6.6. | Environmental Concerns | 24 |
6.7. | Labour | 25 |
7. | COMPETITION | 26 |
7.1. | Barriers to Entry | 26 |
8. | SWOT ANALYSIS | 27 |
9. | OUTLOOK | 28 |
10. | INDUSTRY ASSOCIATIONS | 28 |
11. | REFERENCES | 29 |
11.1. | Publications | 29 |
11.2. | Websites | 30 |
APPENDIX 1 | 32 | |
Summary of Notable Players | 32 | |
COMPANY PROFILES | 33 | |
ECODI LTD | 33 | |
GOLD COAST MATCOM (GCM) LTD | 34 | |
MASSMART HOLDINGS LTD | 36 | |
MAXMART LTD | 42 | |
MELCOM LTD | 44 | |
PBC LTD | 46 | |
PZ CUSSONS GHANA LTD | 49 | |
SAMBA FOODS LTD | 51 | |
SHOPRITE HOLDINGS LTD | 53 | |
UNILEVER GHANA PLC | 58 |