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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

Population in Figures

Total Population:

37,076,584

Urban Population:

64.1%

Rural Population:

35.9%

Density of Population:

82 Inhab./km²

Men (in %)

49.2%

Women (in %)

49.7%

Natural increase:

1.05%

Medium Age:

25.0

Ethnic Origins:

According to the High Commission for Planning of the Kingdom of Morocco, 99.75% of the Moroccan population are Moroccan nationals, which means that only 0.25% are foreign nationals (mainly nationals of France, Senegal, Algeria, Syria, Spain, Ivory Coast, Libya, and Italy). A large majority of the population has Amazigh (Berber) and/or Arab origins, but other ethnicities are also present in Morocco.

Population of main cities

Source: Citypopulation.de, Latest available data.

Age of the Population

Source: World Bank, Latest data available.

Household Composition

Source: High Commissioner for Planning, 2004 ; The United Nations Statistics Division, Latest data available.

Consumption Expenditure

Media in Which to Advertise

Television

The state ended its monopoly of TV broadcasting only in 2002 and many private channels have been operational since that date. Nonetheless, state-run Al Aoula and partly state-owned 2M continue to capture nearly half of audience (Ciaumed).
Television advertising continues to takes the lion's share, however its importance ahead of outdoor and digital advertising has been declining steadily. Once representing about half of the advertising market, TV advertising expenditure now accounts for 40% and recorded a deep decline in 2017 (-6.2%, USD 224 million). TV advertising could recover slightly in 2018 with Morocco competing in 2018 FIFA World Cup.

Main Televisions
National Radio broadcasting and Television Company of Morocco
2M
Medi 1 TV

Press

While the country boasts a wide variety of daily, weekly and monthly newspapers, the Press Code imposes significant restrictions on any coverage of affairs related to religion, the king and the territorial integrity of Morocco, and provides for prison terms. Newspaper readership has been on constant decline since 2013 as the top three dailies (Al Massae, Assabah and Alakhbar) have lost as much as 30% of their readership in four years (OJD Morocco - Organisme de Justification de la Diffusion). This decline is also reflected in the share of print advertising in total advertising expenditure. Press advertising accounts for 14% of total advertising expenditure and fell by 4% in 2017 (USD 80.6 million) despite the Moroccan advertising market growing steadily overall (Moroccan Group of Advertisers).

Main Newspapers
L' économiste
Aujourd'hui
Al Massae
As Sabah
Al Akhbar

Mail

Direct mail advertising needs to be carried out taking into consideration various contrasts of the Moroccan market (urban wealth and middle class and poorer rural communities where the adult literacy rate is significantly lower). More and more agencies offer direct mail advertising services. Moroccan Mail (Poste Maroc) provides three different mail advertising services for companies.

In Transportation Venues

Out-of-home (OOH) advertising is one of the most rapidly growing types of advertising in Morocco along with digital. Its market share is as high as 28% (this rate is thought to be even higher in reality as the Moroccan Group of Advertisers does not count tram unit and gas station advertising as outdoor advertising) and is among the most vibrant in its region. Outdoor advertising expenditure reached USD 179.6 million in 2017, recording the highest year-on-year increase (+19.3%). This form of advertising is expected to maintain its steady growth in 2018 with Morocco competing in 2018 FIFA World Cup.

Market Leaders:
FC COM
NMN

Radio

The state ended its monopoly of radio broadcasting only in 2002 and radio listenership figures have been on the rise since that date. Quran Radio (Radio Coran, state-owned) is the most popular station in the country (13.72% of listenership in the 4th quarter of 2017- Radiométrie Maroc), followed by the privately-owned Med Radio (12.30%). Radio penetration is among the highest in the region (54.5% of Moroccans listen to a radio station on a daily basis) and time spent listening to the radio stood at 2 hours 52 minutes (per day). Radio advertising accounted for 16% of total advertising expenditure (ahead of print) with USD 104.31 million in 2017 (8.6% year-on-year increase) (Moroccan Group of Advertisers).

Main Radios
Radio-Television Marocaine (RTM) (state-run)
Medi 1
Med Radio

Web

This market has exploded these last few years, more generally the online advertising market, owing to the rise of Internet in Morocco. Internet penetration rate rose by 30.1% in 2017 and reached 63.67%, third highest rate in Africa (National Telecommunications Regulatory Agency- 2018). The number of mobile Internet users grew by 31.69% in 2017 and stood at 20.83 million. Digital advertising expenditure, while considerably smaller than traditional forms of advertising, continues to grow considerably. It rose by 60% and reached USD 54.1 million in 2017 (Moroccan Group of Advertisers).

Market Leaders:
WikiDigital
Webeuz

Main Advertising Agencies

Engagia
Taktil Communication
Alter Way Group

Main Principles of Advertising Regulations

Beverages/Alcohol

Article 64 of the Press Code strictly forbids all forms of alcohol advertising (including sponsorship).

Cigarettes

Article 64 of the Press Code strictly forbids all forms of tobacco advertising in the media. Law No. 15-91 further forbids sponsorship and point-of-sale advertising of tobacco products.

Pharmaceuticals/Drugs

Law No. 17-04 regulates pharmaceutical advertising in Morocco. As such, only medicinal products that are issued with a marketing license can be advertised and their advertisement is subject to a prior approval by the Ministry of Health. Ministry's approval is only valid for a year and can be renewed as long as the product holds a valid marketing license. Advertising of prescription drugs is not allowed.

Other Rules

Law No. 03-77 on Audiovisual Communication sets forth guidelines for advertising companies and as such advertisements cannot be inconsistent with religious values, public order, public morals and national defence purposes.

Use of Foreign Languages in Advertisement

No specific regulation on the use of language in advertising. Advertising in French is common owing to the country's past relationship with the language while TV spots in Moroccan Arabic (Darija) are increasingly popular (especially during prime time). Advertising in Berber languages (Amazigh) is less common despite its official language status.

Organizations Regulating Advertising

High Authority of Audiovisual Communication