New study says trusted brands trump price for constrained consumers

Despite being financially constrained, consumers continue to prioritise spending on the brands they know and trust — even if they cost more, according to Kantar’s latest Africa Life study.

Kantar’s data suggests that consumers are willing to pay up to 14% more for brands that they see as meaningfully different. This means that brands need to keep investing in building meaningfully different brands because that is what consumers use to justify the price investment.

Kantar’s Africa Life 2025 study, now in its fifth year, surveyed consumer behaviours of consumers in Ivory Coast, Kenya, Nigeria, Senegal and South Africa. It probed the macroeconomic landscape and pressures, priorities and prevailing realities shaping life across these markets; household consumption and coping techniques of households; online shopping behaviours and the rise of e-commerce; and media and social media behaviours.

As far as the macroeconomic landscape is concerned, the cost of living, unemployment, government corruption and crime and violence are the top concerns. In South Africa, crime and violence is the biggest concern (56%), followed by cost of living (54%) and government corruption (50%). The cost of living is the biggest concern in Kenya (66%), Nigeria (33%) and Ivory Coast (56%), while the unemployment rate is the biggest concern in Senegal (43%).

Kantar says the combination of economic crises (the cost of living and high unemployment rate) and social crises (corruption and crime and violence) has the potential to weaken the social compact, potentially resulting in a high likelihood of further social instability in future.

The study found that while inflation has eased in all markets, consumer prices have remained high with incomes yet to catch up, which means that consumer purchasing power continues to erode. As a result, a significant portion of consumers can’t meet their basic expenses. This is particularly prevalent in Nigeria, where 17% of respondents noted that they don’t know where their next meal is coming from.

Outside South Africa, only a quarter of Africans are formally employed, with high unemployment in Kenya (48%), Nigeria (34%), Senegal (63%) and Ivory Coast (46%). Somewhat surprisingly, most respondents said they were optimistic about their country’s future prospects and their future household position over the next five years. The challenge for African countries will be whether they can create sufficient opportunities to absorb their educated young elites. The study revealed that Africa’s youth — Gen Z — remain optimistic, with many actively seeking employment. Across all markets, however, they are becoming increasingly disillusioned with political systems and leadership.   

Across all surveyed markets, consumer inflation increases remain an issue. In South Africa, fast-moving consumer goods (FMCG) inflation is at 8%, led by rice at 18%; in Kenya it is at 6%, led by coffee at a staggering 54%; and in Nigeria, FMCG inflation is at 54%, led by edible oil (93%), pasta (90%) and instant noodles (83%). As consumers struggle to afford groceries, they have cut back on luxury food items and are buying cheaper brands and eating out less. In Kenya and South Africa, they are consuming less alcohol, and in Kenya and Nigeria they are buying more locally produced goods. Consumers in South Africa are using grocery retail loyalty programmes to drive costs down.

Kantar says the four common strategies that consumers use when budgets are tight is that they consume less, remove discretionary products from their grocery basket and move to smaller pack sizes while the more affluent move to bigger pack sizes which offer bulk discounts; they select more affordable brands; and leave the category entirely or move to an unbranded category. 

WhatsApp has firmly established itself as the unofficial Mall of Africa

—  Kanayo Bardi

Its data reveals that online shopping is now a deeply embedded aspect of consumer behaviour, with most connected consumers active online shoppers, purchasing clothing, accessories, household appliances and fast food online. In Kenya and South Africa, retailer websites are key, while WhatsApp is the platform of choice in Nigeria, Senegal and Ivory Coast.

“WhatsApp has firmly established itself as the unofficial mall of Africa,” says Kanayo Bardi, Kantar’s commercial lead in Nigeria. “It has effectively addressed the core challenges of trust, convenience and purchase flexibility. More than just a platform, it fosters a strong sense of community where referrals from friends and family drive access to great deals and exceptional service, reinforcing a culture of shared value and support.”

Home delivery is the preferred way consumers receive the products they order online, except in Kenya, where consumers prefer to collect from a pickup site.

In terms of payment, mobile money dominates in Kenya, Senegal and Ivory Coast, where even salaries can be paid directly into mobile wallets, highlighting low bank penetration rates (about 20%) and the rise of mobile-first financial systems. 

Nigeria is an outlier with higher bank penetration in cities where consumers use debit cards linked to savings accounts for localised payment strategies. In South Africa, online banking and debit cards are the preferred methods. Cash remains essential in all markets, dominating in the informal trade sectors and rural areas. 

Throughout all the surveyed markets, Wi-Fi and mobile data are the primary gateways to internet connectivity. The rise of home Wi-Fi has resulted in a shift towards more data-heavy behaviours such as online video and social networks. Brands need to be present where people are — with the kind of content they now expect.

AI adoption is growing among connected Africans, particularly in Nigeria, South Africa and Kenya, with Gen Z and higher socioeconomic groups leading the way.

Podcast listenership is on the rise, particularly in South Africa, Kenya and Nigeria, where listeners are tuning in to comedy, sports and education podcasts. Given the popularity of podcasts, Kantar recommends collaborating and co-creating with podcasters to link brands with conversations that matter to consumers.

When it comes to online and digital channels, Kantar recommends that brands focus on creating entertainment, rather than advertising. This is because, in our online worlds, brands compete with entertainment for share of attention, making traditional marketing principles less relevant in these spaces.

The big take-out: Brands need to continue investing in building strong, differentiated identities to justify their pricing in a challenging economic landscape.