This Ramadan is the first Ramadan we see to what extent the total purchase power is going down for all Egyptians across all social economic classes, during the month of highest food and beverage consumption.
Throughout the month of Ramadan 2017, we are tracking those changes in purchase behavior across different categories.
Starting Ramadan, we asked 100 Egyptian household decision makers, social economic classes B and C about the changes in purchase behavior for Ghee, Oil, and Sugar, in addition to changes for Milk, Cheese, and Yoghurt.
This week we are sharing how their purchase behavior for Rice, and Pasta is changing this Ramadan compared to the previous ones, and those were the results:
Rice and Pasta are almost being equally affected from the inflation era compared to Ramadan last year. The majority has decreased consumption of both rice and pasta, followed by switching to cheaper alternatives.
Yet rice brands on the other hand is currently more at risk because Egyptians are starting to buy them lose this Ramadan after the increasing prices, and even categorizing the consumption occasions for buying different brands of rice.
This transition period will soon result in a permanent shrink in market size, as a result of consumers either settling for the loose products, or start categorizing all the consumption occasions they can consume cheaper alternatives, such as using cheaper brands of rice for stuffing of vine leaves and poultry, where the taste will not be as obvious. Hence, this change is both a red alert and great opportunity for brands to grow, as the carbohydrates market is currently being redefined.
Brand managers of the rice and pasta category need strategies for taking the opportunity to react instantly and effectively to the changing behavior.
So, in this post-inflation era, it’s time for Innovation! And yes, even for the basic branded carbohydrates. Opportunity lies for new product development, or revamping the product line guided by Market Research.
Contact us to know how we can support the process of managing the increasing prices with optimizing the brand strategy in the Post-inflation Era.
Marketeers Plan for Ramadan 2017
Throughout Ramadan 2017, we will share with you quantitative and qualitative insights for how purchase behavior of Egyptian household decision makers has changed across the different food and beverage categories. The first three categories are already published:
- Cooking Oil
- Frozen Vegetables
- Frozen Meat & Poultry
- Soda Drinks
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