At the start of 2024, Morocco’s FMCG (Fast-Moving Consumer Goods) sector was in a strong position. After a few difficult years, the industry was finally experiencing growth. Moroccan households had started to spend more, especially on food, dairy and beverages. People were feeling more confident about their personal finances and inflation was finally under control, falling close to zero (0.7%).
But in the last few months of the year, the situation changed, and Moroccan consumers became more cautious. They reduced the number of shopping trips 3%. A clear sign that Moroccan households were once again thinking carefully about how and where they spend their money.
Purchases Slow Down in All Sectors at the End of 2024
Although the year started strong, the growth didn’t maintain its momentum.
At the total FMCG level, spend was up 15% compared to 2020, showing long-term recovery. But when we compare Q4 2024 to Q4 2023, spend dropped by 3%, signalling a clear slowdown. Even across all food, which had performed well throughout the year, there was a sharp 13% drop in spending and a 3% decline in packs per buyer in the final quarter.
The same trend appears in other sectors. Dairy and beverages, which grew earlier in the year saw a slowdown. Home care and personal care saw a more significant decline, with both spending and purchase frequency falling.
But non-essential categories continue to grow…
Yet, despite the pullback, some categories still managed to find growth. Brands in these categories are applying different strategies to remain competitive. Some are lowering prices, others are offering larger formats or more pack varieties, and many are focusing on expanding low-cost brand options. These efforts are making non-essential items more affordable and attractive to shoppers, even in a more cautious environment.
This growth can be seen in the performance of non-essential categories over the past year:
- Chocolate confectionery is up by 38%
- Energy drinks grew by 18%
- Paper towels (35%) and cream (23%) also saw more sales
However, the key pillars of the industry - categories like milk, carbonated soft drinks, and juices saw a decline in sales during the same period. These products are usually a regular part of Moroccan shopping baskets, but people are now buying less.
- The numbers show it clearly:
- Powder milk sales went down by 23%
- Fruit juices dropped by 12%
Stay Ahead in 2025 by Adapting to Consumer Changes
The strong FMCG growth trend seen in 2024 was brief, with an increase in purchases lasting for only one year. This was followed by a noticeable slowdown across all sectors in Q4, raising questions about how 2025 will unfold.
To remain competitive:
- Brands must focus on reinventing essential categories like milk, carbonated soft drinks, and juices to meet evolving consumer preferences
- Pricing strategies will also be crucial in 2025, requiring flexibility in discounts, pack sizes, and value-based offers
- Still count on the ongoing Modern Trade dynamic
Worldpanel’s consumer panel in Morocco covers more than 40 categories across all channels, including hypermarkets and supermarkets, grocery stores, souks, pharmacies, cleaning shops, and online platforms. If you'd like more information, you can reach out to us.