Navigating trends and challenges in the Africa and Middle East region

The following article is an excerpt from ESOMAR’s Global Market Research 2024. This flagship report of ESOMAR, often dubbed as the “Bible of Market Research”, provides you with the most comprehensive overview of the state of the insights industry and the market research sector around the world using data collected by national research associations, leading companies, independent analysts, and ESOMAR representatives. 

Middle East and Africa displayed comparatively high inflation rates, which challenged an otherwise rising industry. The industry’s promising growth in absolute terms, second highest globally at 9.2%, turned negative when accounting for inflation at -1.2% in net terms. This showed that the industry in these regions continued to experience difficulties with settling as it encountered a variety of social, economic, monetary, and political challenges.

The fastest-growing sector, like for the rest of the regions, was research software with an absolute growth of 15.5%. This sector was the only one to remain positive even after factoring in inflation.

Africa

According to Dharmendra Jain, the African market research industry was thriving, driven by an increasing demand for data-driven insights. This surge is underpinned by several key trends:

Technological advancements

AI, mobile technology, and other innovations are revolutionising market research. With robust mobile and internet penetration, technology-enabled research offers cost efficiency, quality, and speed, making it a preferred choice.

Emergence of global players

Africa is attracting global research technology platforms, with major players setting up regional offices. This influx enhances service delivery and diversifies offerings, bringing the continent closer to global standards.

Traditional vs. online methodologies

While traditional face-to-face data collection remains dominant, online methodologies are slowly gaining traction. Clients, often constrained by budgets, are increasingly conducting in-house research for design, analysis, and reporting.

Diverse research practices

Quantitative research, mainly driven by industry giants, is crucial for strategic insights. Meanwhile, smaller boutique agencies excel in qualitative research. Key domains such as brand, innovation, retail, customer experience (CX), and media research continue to thrive alongside social research bolstered by extensive monitoring and evaluation programs. 

GCC 

In the Gulf Cooperation Council (GCC) region, John Presutti and Zahia Boumaiz highlighted the promising long-term growth prospects, fueled by economic diversification efforts. Despite the challenges, the GCC’s long-term growth prospects remain promising due to several factors:

Economic Diversification: GCC countries actively diversified their economies beyond oil dependence, emphasising sectors such as tourism, technology, renewable energy, and sustainable development.

Government Initiatives: Significant investments in infrastructure development, digital transformation, innovation, and sustainable practices create opportunities across various sectors.

Large Youth Population: The GCC’s young and tech-savvy population serves as a substantial consumer base, supporting businesses that leverage data-driven marketing strategies with a sustainability focus.

Overall, ESOMAR continues to encourage countries in these regions to study their local markets to understand the local context, better defend the interests of the players in each country, and properly place the region within the global context. 

Are you interested in knowing how Africa and the Middle East are performing in the insights industry? Download the latest edition of Global Market Research now!