The consumer
- Consumer Profile
-
Morocco has a young population (median age of 30.2 years in 2022, Data Reportal) and large households (4.2 people on average in 2021, Ministry of Finance). 25.6% of the population is below 15 years old, 16.4% are between 15-24, 46.2% between 25 and 59, and 11.7% are 60 or older (Ministry of Finance, 2021). However, the population growth rates stands at only 0.91% in 2022 (CIA World Factbook).
In recent decades the urban population has increased substantially, reaching 64.6% of the total in 2022, with an annual urbanization rate estimated at 1.88% between 2020-2025 (CIA World Factbook). The territorial distribution of urbanization is particularly unequal, with one in three residents in two regions, Greater Casablanca and Rabat Salé Zemour Saer. Literacy among men aged 15 or more reached 83.3%, while that of their female counterparts is much lower, at 64.6% (CIA estimates). School is compulsory from 6 to 14 year olds and the number of out-of-school children has dropped sharply in recent years.
Most of the population is active in the services sector (45,8%), although the agricultural sector also has an important share - at 31.3% - followed by the industrial sector (22.9% - Ministry of Finance, 2020). - Purchasing Power
-
Morocco’s GDP per capita (PPP) was estimated at USD 8,143.5 in 2021 by the World Bank. According to the latest figures released by the National Security Fund (CNSS), the average salary of Moroccans in 2020 stood at MAD 5,152. Divided by sectors (CNSS, 2018), the average wages vary: civil servants average monthly wages sat at MAD 7,549. The highest paid workers were employed in the financial and insurance sectors (MAD 14,749), followed by the IT and communications sector (MAD 10,953). The lowest paid workers were employed in the agriculture (MAD 2,216 per month in 2020) and hospitality (MAD 3,963) sectors. The median salary stood at MAD 2,723 in 2018 (CNSS, latest data available).
It is estimated that three quarters of the total mass of consumption expenditure is made by the wealthiest half of the population, and five out of twelve regions contribute to three quarters of total consumption, i.e. Casablanca Settat, Rabat Salé Kenitra, Tangier Tetouan Al Hoceima, Fes Meknes and Marrakech Safi. The level of inequality in the distribution of wealth is indeed quite high in Morocco, with the highest Gini Index coefficient in North Africa according to a study by the OECD. This disparity is particularly significant at the gender level, the country ranking 136th out of 146 in the latest report of the World Economic Forum on gender parity. In 2020, Moroccan women earned about 15.5% less than men (CNSS, 2020). - Consumer Behaviour
-
For purchases the Moroccan consumer favours neighbourhood establishments where there is a relationship of trust built on contact with the seller. Some 55% of women are responsible for household purchases, 47% of whom seek information before buying and 54% choose brands over the price, according to an Ipsos study. In general, Moroccan consumers prefer to turn to local brands and products. According to a study by Sungeria Group and L’Economiste (2022), 60% of Moroccans prefer local products over foreign brands. But they are increasingly numerous, especially young people, in turning to foreign brands belonging to large multinationals. In addition, Moroccans are not particularly loyal to brands and this trend is continuing. Non-monetary offers such as loyalty programs providing priority services and product customisation are particularly popular, especially with millennials. Thus, only 55% of women surveyed responsible for household purchases say they are loyal to brands and 53% say they are on the lookout for the best offers and promotions.
E-commerce is still underdeveloped in Morocco, but online shopping has increased since the Covid-19 pandemic and the trend continues. During the first quarter 2022, online payment transactions increased by 34.3% compared to the same period in 2021, and the transaction values increased by 19.3% (CMI). While internet penetration has grown considerably over the past few years, now reaching approximately 84% of the total population in 2022 (Data Reportal), only 7% of internet users currently shop online. Only 4% of women responsible for household purchases say they have already done their shopping online and 20% say they look for information on the internet (they are 80% to rely on conventional media). Only a minority of Moroccan consumers use social networks, and among them, many do not want to have contact with a brand through this medium. However, the participation rate of Moroccan communities on brand fan pages is increasing. Thus, consumers who have chosen to follow one or more brands on social networks are investing more and more in their relationship with them, which tends to influence their purchasing decisions. Child-related spending is a top priority for 90% of parents, compared to 76% for travel, 75% for adult clothing and 59% leisure time, according to the Wafasalaf Observatory. Child participation in purchase decisions for food products is 71% and clothes 60% with 50% of kids valuing different brands of clothing.
In recent years we have seen a change in the eating habits of Moroccan consumers who are increasingly turning to healthy and organic products. This turning point concerns mainly young people and pregnant women. The country's major cities have seen many specialty stores flourish and some retailers have even expanded their networks from a dozen to some 700 outlets in 2-3 years. - Consumer Recourse to Credit
-
The use of household credit has been steadily increasing in recent years. According to the latest report by Bank Al Maghrib (Morocco’s central bank), household debt increased by 5.1% y-o-y in 2019, reaching MAD 358.6 billion. Of the total debt, around 63% is composed of home loans (+3.8% y-o-y), while 37% (+1% y-o-y) is destined to consumer credit.
Concerning home loans, the average credit in 2019 stood at around MAD 391,000, with 58% of the loans having a repayment term of 20 years or more. The beneficiaries of this type of credit were over 40 years in more than 60% of cases.
When it comes to consumer credit, more than over 75% of loans have a duration of more than 5 years. Bank Al Maghrib estimates the average amount at MAD 54,000 in 2019. Over one-third (36%) of consumers recurring to credit had a monthly income below MAD 4,000, whereas 41% had monthly revenues above MAD 6,000. Out of all the people that recurred to consumer credit, 49% were employees, 34% civil servants, 7% retirees, 5% artisans and tradesmen and 5% freelancers.
In 2019, the risk credit for home loans reached 6.8%, from 6.5% one year before; and the consumer credit risk also increased from 10.3% to 10.7%. - Growing Sectors
- Infrastructure, agriculture, agribusiness, construction, as well as sports and tourism represent promising sectors according to the French Chamber of Commerce and Industry of Morocco. Added to this is the still-young ICT sector, which represents one of the strategic axes of development put forward by the National Pact for Industrial Emergence.
- Consumers Associations
-
Consumer Portal of Morroco
