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wholesale retail food industry morocco

The Wholesale and Retail of Food Industry in Morocco 2021

Manal Belghali | Morocco | 06 December 2021

The Wholesale and Retail of Food Industry in Morocco 2018

Nina Shand | Morocco | 27 September 2018

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Report Coverage

This report focuses on the wholesale and retail of food in Morocco and includes geographic and economic information on the country and its food industry, including the size of the sector, notable players, developments and corporate actions. There are profiles of six companies that largely include the major players in the sector such as Marjane Holdings, Label Vie, BIM and Akwa Group.

Introduction

This report focuses on the wholesale and retail of food in Morocco. The industry is dominated by traditional grocery shops that are informal and often family-owned and individually managed, in addition to informal open-air markets. It is, however, expected that conventional supermarkets will expand to account for 30% of retail sales by 2025 from 20% currently. Food retail accounted for 13.4% of Morocco’s GDP in 2019 and is considered to be a high potential sector. Large distribution accounts for 15% of food retail. Morocco has implemented programmes to boost the industry that are focused on the modernisation of tradition food retail outlets.

Strengths

• Consumer behaviour and growing spending power are positive for the sector.
• Political and economic stability make Morocco an attractive investment destination.
• The government is implementing measures in favour of the development of food and grocery retail.
• The penetration rate of modern food retail is expected to grow.

Weaknesses

• 45% of the population live in small cities and rural areas with limited purchasing power.
• Consumers are focused on essential items rather than expensive items.
• Disparities between rural and urban areas and between social layers in terms of purchasing power and access to modern food retail outlets.
• Imbalance in the geographic distribution of the food retail outlets and sales, most being concentrated in large cities and on the Casablanca-Rabat axis.
• Low level of specialised skills in the retail sector.

Opportunities

• Morocco and the US signed a free trade agreement that provides preferential access to many US food products.
• Online food retail is growing with the implementation of delivery services for food products.
• Significant potential for digital and e-commerce.
• The fast growth of modern distribution channels. More supermarkets are expected to open in the future.
• The proximity of Europe to Morocco makes imports of small quantities economically feasible.
• There is a growing perception that supermarkets offer safer and cheaper products. Increased acceptance of packaged products.
• There is a growing western-minded youth and a developing middle class.

Threats

• Delays in the construction and opening of new stores and retail outlets could be a consequence of the decrease in real estate activity caused by the pandemic crisis.
• Risk of competition from new modes of retail such as online.
• The average basket and levels of spending could decrease.
• There is a risk of social unrest relating to unemployment, inequality and distrust of the business elite.

Outlook

The wholesale and retail food industry is dominated by four large chains, but the traditional independent grocery retail outlets outnumber conventional supermarkets and account for most of the sector’s turnover (58%). The conventional food retail sector has growth potential, as it is expected that by 2025, the conventional food retail outlets will expand to account for 30% of retail sales from 20% currently. This growth is driven by many factors including, growing urbanisation, increasing spending power and changing consumer trends towards online retail. Digitalisation and shift to online retail are the major trends that will drive the sector in the future.

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The Wholesale and Retail of Food Industry in Morocco 2021

Full Report

R 6 500.00(ZAR) estimated $339.32 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 237.52 (USD)*

Historical Reports

The Wholesale and Retail of Food Industry in Morocco 2018-09-27

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
2.1. Geographic Position 3
3. DESCRIPTION OF THE INDUSTRY 5
3.1. Industry Value Chain 7
3.2. Geographic distribution 9
4. SIZE OF THE INDUSTRY 9
5. STATE OF THE INDUSTRY 12
5.1. 5.1 Local 12
5.1.1. Trade 14
5.1.2. Corporate Actions 15
5.1.3. Regulations 16
5.2. CONTINENTAL 19
5.3. INTERNATIONAL 22
6. INFLUENCING FACTORS 25
6.1. COVID-19 25
6.2. Economic Environment 26
6.3. Technology, Research and Development (R&D) and Innovation 27
6.4. Government Incentives and Support 27
6.5. Environmental Concerns 29
6.6. Labour 29
7. COMPETITION 30
7.1. Barriers to Entry 31
8. SWOT ANALYSIS 32
9. OUTLOOK 33
10. 12. INDUSTRY ASSOCIATIONS 34
11. REFERENCES 34
11.1. Publications 34
11.2. Websites 36
APPENDIX 1 2
Summary of Notable players 2
COMPANY PROFILES 3
Akwa Group S.A. 3
BIM Stores SARL 5
Label Vie S.A. 7
Marjane Holding S.A. 9
Societe Vivo Energy Maroc S.A. 11
YNNA Holding S.A. 13

Introduction

This report focuses on the wholesale and retail of food in Morocco, which is dominated by the informal sector. It is estimated that 20% of food sales currently take place in formal outlets, although this is expected to increase to 30% by 2025. The high rate of population growth, rapid urbanisation and rise in disposable income are factors influencing this trend. The industry was valued at US$13.09bn in 2017, representing 12% of the country’s GDP. The Moroccan government has committed to improving the sector’s contribution to the economy through Rawaj Vision 2020. The strategy aims to increase the wholesale and retail of food sector’s contribution to GDP to 15%, generating an estimated 450,000 new jobs, the construction of 600 supermarkets and hypermarkets and 15 new shopping malls.

Strengths

• Growing internet culture and high mobile phone penetration useful for advertising and marketing.
• Growing perception that supermarkets offer safer and cheaper products
• In the formal sector there are local and international wholesalers and retailers.
• There is increasing investment in food retail and in formal retail space.

Weaknesses

• Efficiencies are hampered by poor infrastructure for processing, storage and distribution of food.
• Enforceability of laws and regulations (corruption).
• For the formal sector, more than 80% of food is still sold through informal channels.
• Lack of infrastructure in rural areas where most of the population is located.
• Shortage of educated and skilled workforce.
• Weak banking system to support e-commerce

Opportunities

• Bilingual culture (Arabic and French).
• Good relations with both EU, Arab states and the US.
• Growth in online food retail.
• Increase in formal retail space and a growing shopping centre culture.
• Increased supply of produce for wholesalers and retailers from local suppliers as a result of increased agricultural potential.
• Mobile technology innovation for online shopping.
• Morocco is regarded as one of the most stable countries in North Africa.
• The growth in the urbanised middle class, which should lead to growth in formal retail.

Threats

• Conflict with neighbouring Algeria about Western Sahara.
• Conflict with Spain about illegal immigrants and fishing zones.
• Increasing cost of food could limit the growth of formal retail.
• Lack of enforceability of laws and regulations (corruption).
• Low literacy rates.

Outlook

Increasing urbanisation coupled with the growth of the middle class and the associated increase in spending bodes well for the future of the food retail sector. The increase in the amount of formal retail space in Morocco as well as government’s commitment to developing and growing the industry through Rawaj Vision 2020 are likely to see the wholesale and retail of food sector growing significantly going forward. Although informal retail activity still makes up the bulk of retailing activity in the food sector, with Rawaj Vision this sector will increasingly be absorbed into the formal economy. Online grocery sales are also seeing rapid growth with the emergence of new grocery websites and online ordering services. This is supported by government’s new banking laws which allow for the development of the digital economy and mobile money.

The Wholesale and Retail of Food Industry in Morocco 2018

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Wholesale and Retail of Food Industry in Morocco 2021-12-06

R 6 500.00(ZAR) estimated $339.32 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Supply Chain 5
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 9
5.1. Local 9
5.1.1. Trade 12
5.1.2. Corporate Actions 13
5.1.3. Regulations 13
5.1.4. Enterprise Development and Social Economic Development 16
5.2. Continental 18
5.3. International 20
6. INFLUENCING FACTORS 22
6.1. Economic Environment 22
6.2. Government Initiatives 23
6.3. Input Costs 24
6.4. Roads and Infrastructure 24
6.5. Technology, Research and Development (R&D) and Innovation 26
6.6. Crime and Security 27
6.7. Labour 28
6.8. Trade Agreements 29
6.9. Ramadan 30
7. COMPETITION 30
7.1. Barriers to Entry 31
8. SWOT ANALYSIS 32
9. OUTLOOK 33
10. INDUSTRY ASSOCIATIONS 33
11. REFERENCES 34
11.1. Publications 34
11.2. Websites 34
APPENDIX 1 36
Summary of Major Players 36
COMPANY PROFILES 37
AKWA GROUP S.A. 37
BIM STORES SARL 39
LABEL VIE S.A. 40
LIBYA OIL MAROC S.A.S 42
MARJANE HOLDING S.A. 44
SOCIETE VIVO ENERGY MAROC S.A. 45
SUNSTAR GROUP LTD 46
YNNA HOLDING S.A. 48