In a recent report published by NIQ, a renowned consumer intelligence company, it was revealed that Kenyans are turning to ambient foods as a result of the escalating cost of living. The study, which analyzed consumer habits in 2023 compared to the previous year, highlighted the growing popularity of ambient foods – those that can be stored at room temperature for extended periods. This shift in consumer behavior was primarily driven by the high inflation rate, particularly due to soaring fuel prices. To cope with the financial strain, individuals started purchasing smaller quantities of products and exploring alternative options such as private label brands, which significantly contributed to the growth of the ambient food and dairy categories.
Despite a slight decrease in inflation during the second quarter of 2023, the preference for ambient foods among Kenyans remained strong. The NIQ report emphasized that consumers continued to opt for private label brands as they sought better value for their money amidst the persisting inflationary pressures. The study also highlighted that high inflation played a pivotal role in driving the demand for fast-moving consumer goods (FMCG) in Kenya. The top ten commodities consumed by Kenyans, as identified in the report, included flour, energy drinks, cooking oil, liquid milk (UHT), fermented milk, toilet soap, diapers, liquid fresh milk, fem-care products, breakfast cereals, and skin care items.
The NIQ report shed light on the changing consumer landscape in Kenya, with the rising cost of living prompting a significant shift towards ambient foods. These types of foods, known for their long shelf life at room temperature, gained popularity among Kenyans in the first quarter of 2023. As inflation soared to a season high of 9.2 percent, driven primarily by surging fuel prices, consumers took measures to protect their household budgets. This included purchasing smaller quantities of products and exploring private label brands as alternatives to their favorite products. Despite a decrease in inflation during the second quarter, the demand for ambient foods remained strong, and Kenyans continued to prioritize value for money by opting for private label brands.