RETAIL IN AFRICA

BCG examines how young consumers are reshaping Africa’s retail future

By our African Marketing Confederation News Team | 2025

Six-country study finds that younger, more optimistic, consumers will drive a retail revolution across the continent.

The US-based Boston Consulting Group has released a report examining how young consumers will reshape Africa’s retail markets going forward.

Titled ‘119 Million Reasons for Optimism: How Young Consumers Are Reshaping Africa’s Retail Future’, the report is based on BCG’s Africa Consumer Sentiment Survey conducted in July 2025. The study polled 6,275 urban consumers across Egypt, Morocco, Ethiopia, Nigeria, South Africa and Kenya – which together account for most of Africa’s GDP and consumer spending.

BCG observes that Gen Z consumers will energise the continent’s retail growth over the next decade, with key drivers including rising discretionary spending within this consumer group, a strong focus on quality and a preference for blended online-offline shopping journeys.

The report says that, in general, overall consumer sentiment in the countries surveyed on the continent remains low. Three-quarters of respondents said they were worried about their financial situation, more than half reported saving less, and nearly one-third said their household income had declined compared with six months earlier.

Photo: Cottonbro Studio from Pexels

But Gen Z has a different outlook. Although just over half of people aged 18 to 27 rated their financial situation as poor, 70% expect it to improve within a year. This optimistic group represents close to 20% of the population, making it a powerful force that will drive future retail growth in Africa.

The BCG researchers also note that the rise of a digital-native youth majority in Africa could drive a potential transformation of Africa’s traditional retail towards a hyper-local, mobile- enabled ecosystem that blends online discovery and social commerce with trusted local fulfilment.

“Amid economic pressures and low consumer confidence, Africa’s next retail growth story is already taking shape, driven by a young, digital and relentlessly optimistic generation,” the report states.

BCG says retail businesses should rethink how they engage consumers in Africa in five key ways:

Balance affordability with aspiration
Amid tight household budgets, consumers still aspire to progress. Winning brands will deliver affordable aspiration, i.e. products that combine everyday accessibility with signals of quality and modernity.

Engage Gen Z, Africa’s growth engine, early
The 18–27 age group will remain the continent’s most powerful consumer base. Brands don’t need to redesign products for them, but must embed themselves in Gen Z’s world through the platforms, formats and messages that shape their daily lives. This will build loyalty early and grow with them over time.

Embed fintech into the experience
Fintech is increasingly becoming part of the retail fabric. Integrating digital payments, wallets, or responsible micro-credit options directly into the consumer journey will unlock spending potential and reduce friction.

Reimagine value through hybrid retail
Africa’s consumers move fluidly between online discovery and offline purchase. Success will depend on integrating both – connecting digital influence with trusted local fulfilment.

Make social the new storefront
Social media now rivals word-of-mouth as a purchase driver. Retailers should treat platforms like WhatsApp, TikTok and Instagram as direct commerce channels where storytelling, persuasion and purchase happen simultaneously.

You can find the full report here.