Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Despite slow economic activity in 2016, food and drink spending in Uganda will remain
resilient, stemming from high levels of remittances which will support household spending. Disposable
incomes over 2016 will be relatively low, which will drive higher demand for traditional foods and lowvalue
products. The offering of affordable goods will be a key growth driver in the Ugandan market on the
back of a large rural population as well as independent retailers who will continue to dominate grocery
sales in the short term.
Key Trends & Industry Developments
? Rising incomes in Uganda will drive spending on food and drink over the next five years. While staples
currently dominate the typical diet, households will gradually be able to incorporate more discretionary
food items such as confectionery products.
? In the drinks sector, we expect beer and carbonated soft drinks to outperform, benefiting from a young
consumer base. In addition, these categories tend to perform well in less sophisticated markets, where
consumer preferences are not highly dynamic.
? Nonetheless, obstacles remain for potential investors, including a very underdeveloped formal retail
sector (currently accounting for less than 5% of total food retail sales) and a weak infrastructure network.