Food - South Africa

South Africa

Highlights

Revenue in the Food market amounts to US$29.74bn in 2024. The market is expected to grow annually by 7.23% (CAGR 2024-2029).
The market's largest segment is the segment Confectionery & Snacks with a market volume of US$5.26bn in 2024.
In global comparison, most revenue is generated China (US$2tn in 2024).
In relation to total population figures, per person revenues of US$487.40 are generated in 2024.
In the Food market, 2.7% of total revenue will be generated through online sales by 2024.
In the Food market, volume is expected to amount to 9.10bn kg by 2029. The Food market is expected to show a volume growth of 3.1% in 2025.0.
The average volume per person in the Food market is expected to amount to 129.20kg in 2024.

Key regions:

Definition:

The food market covers all edible products that are bought and consumed for nutrient-based purposes. The market includes both fresh and processed foods.

Structure:

The market consists of 13 different markets:

The Dairy products & Eggs market covers animal products, such as milk, eggs and products made from mammal’s milk and non-animal products, such as milk substitutes. This market is divided into six subsegments that include milk, milk substitutes, yogurt, cheese, eggs and other dairy products and eggs.
The Meat market covers animal products, such as pork, poultry, and free-from meat products, such as meat substitutes. This market is divided into three submarkets: fresh meat, processed meat, and meat substitutes.
The Fish & Seafood market covers products made from fish and seafood. This market is divided into three submarkets: fresh fish, fresh seafood, and processed fish & seafood.
Fruits & Nuts cover edible fruits and nuts. This market is divided into three submarkets: fresh fruits, processed & frozen fruits, and nuts.
The Vegetables market covers edible plants. This market is divided into two submarkets: fresh vegetables, processed & frozen vegetables.
The Bread & Cereal products market covers baked goods made from dough. Dough is made using flour, water, a leavening agent, and other optional ingredients. This market also covers products made from cereals that are usually used as part of a main meal. This market is divided into five submarkets: bread, pasta, rice, breakfast cereals and other cereal products.
The Oils and Fats market covers both edible oils and fats made from animals and plants. This market is divided into four submarkets: butter, margarine, edible oils, and other oils & fats.
The Sauces and Spices market covers additional ingredients used during the food preparation process and is divided into three submarkets: tomato ketchup, other sauces, and spices & culinary herbs.
The Convenience food market covers prepared food and meals that require little effort to prepare. This market is divided into two subsegments, soups and ready-to-eat meals.
The Spreads and Sweeteners market covers spreads and ingredients added to food or beverages to give it a sweet flavor. This market is divided into two subsegments, spreads and sweeteners.
The Confectionery & Snacks market covers sweet, savory, and salty food. This market is divided into two subsegments, confectionery and snacks.
The Baby food market covers food that is only meant to be consumed by babies and small children.
The Pet food market covers food that is intended for pet use only.

Additional Information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per unit (unit refers to kilogram), and sales channels. The market encompasses retail sales through both online and offline sales channels to private end customers (B2C). The market only covers at-home consumption; out-of-home consumption is not included. The out-of-home revenue data is only shown as a separate box at the market level.

For more information on the displayed data, click the info button on the right side of each box.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The South African food market is experiencing steady growth, with factors such as increasing health awareness, convenience of online services, and adoption of digital technologies driving this trend. However, the market's minimal growth rate may be impacted by several factors, including changing consumer behavior, fluctuating commodity prices, and the impact of climate change on agricultural production.

Customer preferences: As South Africa's middle class continues to grow, there has been a shift towards more health-conscious and ethically-sourced food options. This trend is driven by a desire for healthier lifestyles and a greater awareness of the impact of food production on the environment. As a result, there has been a rise in demand for organic, vegetarian, and vegan products, as well as a push for more sustainable packaging and sourcing practices. This shift is also fueled by the younger generation's increasing interest in social and environmental causes.

Trends in the market: In South Africa, The Food market industry is experiencing a rise in demand for organic and locally sourced products. This trend is driven by consumer preferences for healthier and more sustainable food options. As a result, food retailers are increasing their offerings of organic and locally produced goods. This trajectory is significant as it reflects a shift towards more conscious consumption habits and has implications for industry stakeholders, including small-scale farmers and sustainable food producers. Additionally, the rise of online shopping and food delivery services has also impacted the market, with a growing number of consumers opting for these convenient options.

Local special circumstances: In South Africa, The Food market has been heavily influenced by the country's diverse cultural landscape. The market is shaped by traditional cuisines and dietary preferences, leading to a wide variety of food options. Additionally, the country's geographical location and climate play a significant role in the availability and production of certain foods. Furthermore, South Africa's regulatory environment, such as strict food safety regulations, has a significant impact on market competition and consumer trust. These unique factors contribute to the dynamic and ever-evolving nature of The Food market in South Africa, setting it apart from other markets.

Underlying macroeconomic factors: The Food market in South Africa is heavily influenced by macroeconomic factors such as economic growth, government policies, and consumer spending. As the country continues to experience economic growth, there is a rise in disposable income, leading to increased consumer spending on food products. Government policies and initiatives also play a significant role in shaping The Food market, such as trade agreements and regulations on imports and exports. Furthermore, global economic trends, such as changing consumer preferences and increasing demand for organic and sustainable food products, are also impacting The Food market in South Africa. These factors drive innovation and competition in the market, creating opportunities for growth and expansion.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.