Constant price increases have forced Ghanaians to reduce their appetite for Fast Moving Consumer Goods (FMCG), a survey by Maverick Research has disclosed.
The survey pointed out that consumers offset food price increases with non-essential items such as non-alcoholic beverages.
Again, consumers are not returning to luxuries in the current economic climate.
The research identified the tough lending and trading environment as the major causes of the increase in prices of the essential items.
There had been 48% increase in electricity tariffs within 2023, 18% increase in water tariffs within 2023 and 15% increase in petrol prices from June 2022.
Soft Drinks retain volume growth as cheaper complements and substitutes for food items.
The survey indicated that food inflation will persist and consumers will continue to switch, swap and squeeze to more affordable brands since there is pressure on their disposable incomes.
Secondly, the pressure on disposable income will continue to result in a flight to value. However, winning brands will be the ones that enhance value proposition (relative to competition) amidst price increases and down weighing.
The survey researched prices of goods in the Food, Home and Personal Care and Non Alcoholic Beverages sector
26 categories were covered. They include bottled water, coffee, deodorant, fruit juice, home and house care, milk, toilet soap and tooth paste.
The cities covered Accra, Tema, Ho, Cape Coast, Mankessim, Koforidua, Takoradi, Sunyani, Techiman, Kumasi and Tamale.