Mozambique Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in mozambique, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Fast Moving Consumer Goods
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Overview

Mozambique’s Fast Moving Consumer Goods (FMCG) sector had a 10.6-percent share of the country’s gross domestic product (GDP) in 2020. With over 33 million Mozambicans, 55% of whom are below 20 years old, and high projected GDP growth, the Mozambique marketplace offers significant potential for U.S. brands. Real household spending in Mozambique is set to grow by 2.0% in 2022, accelerating from the estimated 0.6% growth in 2021 and presenting more opportunities for investment. The country’s main FMCG brands are from U.S., South Africa, China, India, the United Arab Emirates, Singapore, and Portugal.

Market Entry Channels

FMCG brands entering Mozambique tend to partner with local distributors who have a well-established network of supply chain. Due to the country’s challenging north-south logistic corridors, convenience and retail stores are common, as they create locations where the population can trade safely while accessing utilities.

Companies launching products to low-income Mozambicans need to focus on smaller stock keeping sizes, lower prices and invest significant time and energy working with traditional trade. Local language advertising on TV and radio using family-oriented themes will strongly connect with audiences. Staying invested in Mozambique and building consumer-centric strategies will be a key to accelerate brand growth.

Mozambicans tend to shop at traditional trade points, such as kiosks, informal traders, mom-and-pop, container stores and open markets. Affordability is a key purchase driver. Mozambicans are receptive to product differentiation and new product categories given few locally manufactured brands. The preferred entry channels for FMCG brands in Mozambique are:

  • Wholesale distributors
  • Agents
  • Sales teams
  • E-commerce

Leading Subsectors

· Beer, Wine, and Spirits

· Beverages

· Cosmetics and Personal Care

· Packed Foods

Opportunities

Consumer-packaged goods (CPG) category expenditure, led largely by food, accounts for around 30% of monthly household spending in Mozambique’s urban areas. Exploration in high opportunity areas like food and beverages would resonate with most Mozambicans. Most brands entering the Mozambican market design smaller packaging sizes to address price sensitivity and reach more consumers.

Cosmetics and Personal Care products has a steady growing demand in Mozambique, with manufacturers understanding the need for product tailoring to effectively deliver the right products to Mozambican consumers. Personal care items, especially soaps and toothbrushes, have higher penetration than household items like laundry detergents. There is a high demand for hair growth and treatment products with the growing trend of hair extensions amongst Mozambicans.

 

 


 

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