(Euromonitor) Ethiopia's packaged food retail sales made up for US$6 billion in 2023, projected to reach US$16.4 billion by 2028. This significant expansion indicates a robust demand for processed and packaged food products.
High growth products in the forecast include:
- Savory Snacks
- Sweet Biscuits, Snack Bars and Fruit Snacks
- Confectionery
- Processed Fruit and Vegetables
- Rice, Pasta, and Noodles
- Breakfast Cereals
- Edible Oils
Leading grocery retailers in Ethiopia include Shoa (Shoa Trading Plc), Safeway (Albertsons Cos Inc), All Mart (All-Mart Plc) and Fresh Corner (Luna Corp). According to Euromonitor about 94% of grocery retailing is done by independent grocers, especially outside of the metropolitan areas. Most distribution in Ethiopia, particularly to regional towns, is conducted through informal business arrangements. For example, after being cleared through customs, many goods will be sold to wholesalers in Addis Ababa’s (and Africa’s) largest open market (Merkato) and then distributed to retailers and small vendors.
Some mid- to high-income consumers in Addis Ababa and other big cities are increasingly choosing to shop from modern grocery retailers. With brightly lit and spacious aisles displaying well-organized assortments, supermarkets provide a much more comfortable and convenient shopping experience than open markets, where crowds and spatial constraints limit the potential for browsing and where goods are often damaged during handling.
Moreover, supermarkets tend to carry higher quality products that are difficult to find elsewhere, including imported brands.