TGM Algeria Ramadan Insights 2023

Observed by Muslims worldwide, Ramadan is a momentous occasion, with an impressive 92.7% of the Muslim population in Algeria expected to partake in this year's festivities. The holy month holds tremendous significance for followers of Islam and is a time for prayer, fasting, and reflection. This is the most awaited season for 98% of respondents in Algeria, which they like primarily because of the opportunity to spend time with the family (93%).

60% of Algerian respondents plan to spend time gathering with loved ones and waking up early for the pre-dawn meal (suhoor). The practice of worshipping and gathering with loved ones among all age ranges in Africa is equally important. Young adults in Algeria, surprisingly, exhibit more indifference toward shopping and taking advantage of Ramadan sales and offers as compared to the 30-55 age group.

Overall, Ramadan activities hold the same significance level for Muslims of all age ranges. In keeping with the principles of Islam and the holy month's spirit, charitable giving and worship remain the main priorities among Muslim communities in Algeria (77%).

After isolation, this much-needed break is a welcome opportunity to share in the holy month's warmth, generosity, and cherished traditions. With only 4% of Algerian Muslims feeling the threat of COVID-19, this Ramadan is set to be a return to the familiar, a time of togetherness, and a celebration of the community's resilience.

Besides spiritual reflection, worship, and acts of charity, food and drinks also play a significant role in Ramadan during iftar and suhoor meals. Being one of the busiest periods for consumer goods companies, Fast Moving Consumer Goods (FMCG) brands considerably impacts consumers' minds across Algeria during Ramadan. Coca-Cola ranked first among the most famous FMCG brands, followed by Hamoud Boualem (soft drinks), Pepsi, Sim, and Soummam (dairy products). These brands are ubiquitous during Ramadan and hold a special place in Algerians' hearts, creating a sense of unity and togetherness among families and communities.

Fasting
Ramadan is a significant event for Muslims, and fasting is essential to this celebration. 100% of Muslims in Algeria participate in the fast, making it the most prominent religious season that unites Muslim communities in spiritual and compassionate practices. Daily gatherings, communal prayers, charitable events, and Iftar or Suhoor outings are all integral to the month of Ramadan, and it's a time of year that Algerian Muslims eagerly anticipate.

Increased Budget for Food Expenses
Food shopping is an integral part of this season, as consumers purchase gourmet dishes and imported foods to enhance the social aspect of eating during Iftar. This year, there will be a significant rise in spending on food, with 84% of Algerian surveyed claiming they will spend the same or more on food and drinks compared to 2022, which could be attributed to the increase in consumer prices.

Ramadan embraces convenience
Although cooking at home remains the prevalent method of food consumption during the month in Algeria, accounting for 88% of meals consumed, buying prepared food from local markets and grocery stores has become the go-to method (33%), followed closely by phone orders (23%). As more and more families shift from traditional meals to prepared ones, those who do not have time to cook can still partake in the celebratory feasts of Ramadan.

Dwelving into the media consumption landscape of Algeria makes it evident that mobile devices have become an essential part of the Muslim Community's observance of the holy month of Ramadan. With the rise of smartphones and social media, people are increasingly turning to digital channels for their daily dose of news, entertainment, and spiritual guidance.

80% of respondents in Algeria choose to spend more time using mobile devices during Ramadan, making it the dominant media form, surpassing all others, followed by social media (71%). Only 19% of participants said they spend time on the radio during the observance.

The use of social media during Ramadan is particularly noteworthy, as it reflects a desire among Muslims to stay connected with friends and family during this important time of year. Social media also provides a platform for people to learn about their faith, share their experiences, and seek guidance from religious leaders and scholars. In Algeria, social media serves as a crucial source of staying connected for Muslims, with 93% relying on it to enrich their knowledge. Additionally, 87% utilize it to stay abreast of pertinent information, while 90% leverage it to seek out alluring bargains and offers for their shopping needs.

With the widespread use of technology, many Algerian Muslims have turned to mobile apps to stay connected with their faith and enhance their spiritual practices. Our survey found that Quran apps (15.1%) are the most popular app in Algeria, followed by The Holy Quran (13.8%).

During Ramadan, shoppers in the Muslim world eagerly engage in retail therapy, prompting retailers to offer special promotions and extended store hours. Consumers are more receptive to trying new products and supporting local businesses aligned with their values. In Algeria, 72% of respondents expressed interest in exploring new brands during their Ramadan shopping spree.

Hunting for the best deals
Despite the openness to novelty, the most significant factors that influence their purchasing decisions continue to be price and discounts. TGM 2023 Ramadan Survey in Algeria has shown that an overwhelming majority (94%) of shoppers prioritize affordability during this period, with discounts also playing a crucial role in influencing their buying behavior (90%).

The gift that keeps on giving
Gift-giving is always an enjoyable part of Ramadan, and this year's gifting budget is expected to increase for Africa. However, despite this upward trend, 43% of Algerian participants plan to keep their Ramadan spending on gifts the same as the previous year. Interestingly, Facebook has emerged as a popular social media channel for discovering new ideas and inspiration for Ramadan purchases, with 79% of Algerian shoppers using this platform. As such, it is increasingly vital for businesses to leverage digital platforms to reach and engage with customers during Ramadan. By doing so, they can tap into the growing demand for gift-giving options and position themselves effectively in this competitive market.

Shopping Online vs. Offline
Ramadan is a social time spent with loved ones, and in-store shopping allows people to enjoy the experience together. Additionally, many prioritize charitable acts and community support by choosing local markets and small businesses over high-end malls and supermarkets. 51% of respondents in Algeria plan to do most of their Ramadan shopping exclusively in stores.

The 2023 Ramadan budget will be more prominent - with some financed by loans.
Ramadan is a time of increased spending for many Muslims, which has led to a surge in demand for personal loans from banks and financial institutions. The TGM 2023 Ramadan Survey shows that 25% of African Muslims plan to seek out loan options to support their expenses during Ramadan, highlighting the need for accessible and affordable credit options in the region. However, the percentage of respondents seeking loans in Algeria is lower at just 8%. It suggests that factors such as income levels, cultural norms, and financial literacy may impact consumer behavior during Ramadan and must be considered by businesses and financial institutions operating in this market.