Algeria flag Algeria: Buying and Selling

Advertising and marketing in Algeria

Marketing opportunities

Consumer Profile
The population in Algeria is relatively young even if the amount of old people is increasing. The median age is 28.9 years, up about 3 years from 10 years ago (CIA). There are 31% of people under 15 years old, 62% aged between 15 and 64, and 7% aged 65 and older (UN, 2022). The population growth rate in 2022 is 1.34% (CIA). On average, there are between 4.5 and 5 people per household according to estimates, a relatively high figure (Conjoncture DZ). Women represent 49.5% and men 50.5% of the population with 74.8% of Algerians live in urban areas in 2022. The northern part, close to the coast, is denser than the centre and the south of the country. The main cities are Algiers, Oran, Constantine and Annaba. The level of education in Algeria was estimated as one of the worst in the world according to the OECD, but it has recently improved. According to official data there were 7.94% of illiterates in 2021. Less than 40% of adults aged 25 and older have passed secondary school (UNDP, 2015-2019). However, the number of students enrolled in university is increasing.
Purchasing Power
The GDP per capita PPP in Algeria is about USD 11,324.2, a relatively low level (2020, World Bank). The average monthly salary is estimated at 40,000 dinars. The latest available data for private consumption published by CEIC Data show a 6.4% decrease year-on-year at the end of 2020. The Gini index on income inequality is 27.6, a figure to be taken with caution because it dates from 2011 (World Bank, latest data available). Although inequalities had previously decreased, they are now widening again. With a gender gap index estimated at 0.633, Algeria occupied the 136th position out of 156 countries (WEF, 2021).
Consumer Behaviour
In Algeria, it is difficult to assert that the country is a consumer society. Generally, the consumption is determined by price since the organization of the expenses is important. Purchases are often made from small retailers even though supermarkets are growing. However, in the big cities one can find shopping centres. Since the Covid-19 pandemic and the war in Ukraine, inflation and food shortages have negatively impacted consumer confidence. Online commerce is growing, especially since the Covid-19 pandemic, and consumers are increasingly attracted by easier and faster ways of buying. However, online payments are still abandoned in favour of cash payments made after the order. As a general rule, consumers are open to international products. However, the government has launched a campaign to promote local products.

In terms of loyalty branding is an important buying factor but consumers are willing to go elsewhere for a better price. About 60% of the population has internet and is active on social networks (Data Reportal, 2022). However, purchasing decisions on networks are not as developed as in Europe or the United States.

Organic and non-intensive agriculture attracts a tiny part of the population. Dietary habits are changing to a diet richer in animal fat and sugar. The second-hand market is very developed like ready-to-wear but also for furniture and vehicles. The collaborative economy is developing, particularly with Airbnb and carpooling sites.

Consumers Associations
Ministry of Commerce , List of Consumer Associations
Main Advertising Agencies
Lotus Conseil, agency of the Publicis Group
Memac Ogilvy
Echo Advertise
Beincom

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Latest Update: June 2022

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