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Trends In South African FMCG Markets Updated Report Available
BY Louise Mitchell
South Africa
15 April 2021
R 14 400.00 (ZAR)  
estimated $ 989.27 (USD) *
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FMCG Markets in South Africa


Locally manufactured and imported goods are sold via a countrywide network of formal and informal channels to shoppers that are deeply divided in terms of spending power. The largest retail outlet for FMCG is supermarkets which have well-established supply chains. Other channels include omnichannel retail (e.g. online, e-commerce, mobile commerce), direct selling, and craft, art and food markets. Some of the largest FMCG companies in the world operate in each market segment, e.g. Johnson & Johnson, Estee Lauder, Colgate-Palmolive, British American Tobacco, Nestle, and Henkel. Local players include listed entities like the largest supermarkets, food manufacturers and wholesalers – among others Pick n Pay, Spar, Woolworths, Shoprite, Tiger Brands, and RCL Foods – and pharmacy chains including Dis-chem, and Clicks. Local privately-owned small businesses abound, e.g. Africology (a cosmetics manufacturer and retailer), and Sally Williams (a confectionery manufacturer and retailer).


Trading Conditions


The effects of the lockdown that started on 27 March 2020 made trading conditions even more challenging than during the previous four years of recession. Supply chains were disrupted in the first few months of the lockdown, most FMCG products were declared non-essential, and sales stopped for almost three months. The worst-affected markets were tobacco and liquor with bans on sales, while pharmaceuticals, fruit and vegetables experienced huge demand. Panic buying led to product shortages, e.g. flour, yeast, soap and hygiene products. The lockdown was a driver for rapidly rising online sales. Before coronavirus retailers have been trying to divert the effects of operating cost increases from consumers by passing the costs on upstream. Price sensitive consumers keep competition among retailers high and they shop for the best prices.


Competition


Strong rivalry exists in fragmented markets with a multitude of competitors in the informal sector and numerous small businesses. In the formal sector, the four largest supermarkets are dominating causing high levels of concentration. Overall, market forces are exercising moderate pressure on competitors. The biggest force is coming from price sensitive buyers in spite of their reduced disposable income. Supermarkets are under investigation by the Competition Commission for unfair price increases of certain foodstuffs, while pharmacies, wholesalers and manufacturers of face masks, sanitisers and other sanitising products have been found guilty and fined for unreasonable price hikes during the lockdown. Following the grocery retail market inquiry, the Commission made recommendations to reduce the dominance of the leading supermarkets. Should these not be implemented regulations to enforce the recommendations might be promulgated.


Report Coverage


The report focuses on South African FMCG markets as part of the retail and wholesale industry. Markets are segmented according to type of retailer: general dealers, including supermarkets and non-specialised stores selling FMCG; food, beverages and tobacco sold in non-specialised stores, pharmaceuticals and medical goods, cosmetics and toiletries; and all other retailers that also sell FMCG like stationery, FMCG sold online, and at craft markets. The report refers to 28 Who owns Whom sector reports on individual FMCG markets. In total, over 300 local and international companies are profiled in these reports.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE MARKETS 1
2.1. Industry Value Chain 3
3. SIZE OF THE MARKETS 4
4. COMPETITION 6
5. STATE OF THE MARKETS 8
5.1. Coronavirus 9
5.2. Trade 10
5.3. Corporate Actions 11
5.4. African Markets 12
6. TRENDS 14
6.1. Innovation 14
6.2. Digitalisation 17
6.3. Price Increases 18
6.4. Investments and Disinvestments 21
6.4.1. Direct Investments 21
6.4.2. Disinvestments 23
7. PESTLE ANALYSIS 24
8. OUTLOOK 26
9. REFERENCES 27
9.1. Publications 27
9.2. Websites 27
APPENDIX 1 28
List of Sectors Covered 28
Historical Reports
  • The Agri-Business Sector in Tanzania 2021-05-24
  • Manufacture of Bakery Products 2021-04-30
  • Trends In South African FMCG Markets 2021-04-15
  • The Beverages Industry in Ghana 2021-04-08
  • The Manufacture of Soap and Cleaning Products, Wax and Polishes in South Africa 2021-03-31
  • The Fresh Fruit and Vegetables Industry in South Africa 2021-03-29
  • The Manufacture of Cleaning Products, Disinfectants, Wax and Polishes 2021-03-23
  • Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2021-02-27
  • The Cosmetics Industry in South Africa 2021-02-03
  • Manufacture of Dairy Products in South Africa 2021-01-25
  • Manufacture of Flour and Grain Mill Products in South Africa 2021-01-20
  • The Pharmaceutical Industry in South Africa 2020-12-11
  • The Wholesale and Retail Trade of Books and Stationery in South Africa 2020-10-28
  • Preserving and Processing of Fruit and Vegetables in South Africa 2020-10-05
  • Manufacture of Edible Nuts in South Africa 2020-09-04
  • The Online Retail Industry in South Africa 2020-08-17
  • The Production, Processing and Preserving of Red Meat in South Africa 2020-07-28
  • The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2020-07-18
  • The Agri-Business Sector in Angola 2020-06-29
  • The Manufacture of Sugar in South Africa 2020-06-29
  • Manufacture of Breakfast Cereals in South Africa 2020-06-08
  • The Tea and Coffee Industry in South Africa 2020-05-25
  • Wholesale and Retail of Food 2020-04-15
  • The Agri-Business Sector in Mozambique 2020-04-07
  • The Manufacture of Paper and Related Products 2020-03-31
  • The Agri-Business Sector in Zimbabwe 2020-03-30
  • The Tobacco Industry in Mozambique 2020-02-24
  • The Liquor Industry 2020-02-20
  • Wholesale and Retail of Food in Angola 2020-01-31
  • Manufacture of Edible Salt 2019-12-20
  • Manufacture of Flour and Grain Mill Products in South Africa 2019-12-04
  • Wholesale and Retail of Food in Nigeria 2019-12-03
  • The Agri-Business Sector in Ethiopia 2019-11-29
  • The Beverages Industry in Mozambique 2019-10-23
  • Manufacture of Sugar in Eswatini 2019-10-14
  • The Beverages Sector in Angola 2019-10-03
  • Manufacture of Bakery Products 2019-09-30
  • The Manufacture of Soap and Cleaning Products, Wax and Polishes in South Africa 2019-09-30
  • The Agri-Business Sector in Zambia 2019-07-23
  • The South African Tobacco Industry 2019-07-05
  • The Cosmetics Industry in South Africa 2019-06-14
  • The Poultry and Egg Industry 2019-06-11
  • The Manufacture and Wholesale of Non-Alcoholic Beverages 2019-06-05
  • Manufacture of Dairy Products in South Africa 2019-04-10
  • The Pharmaceutical Industry in South Africa 2019-04-05
  • The Fresh Fruit and Vegetable Industry in South Africa 2019-03-08
  • Wholesale and Retail of Food in Egypt 2019-02-25
  • The Confectionery Industry 2019-01-17
  • Manufacture of Pasta 2018-11-28
  • The Liquor Industry 2018-10-30
  • Manufacture of Breakfast Cereals in South Africa 2018-10-25
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • Manufacture of Dairy in East Africa 2018-10-15
  • The Manufacture of Paper and Paper Products 2018-10-02
  • Wholesale and Retail of Food in Morocco 2018-09-27
  • Preserving and Processing of Fruit and Vegetables in South Africa 2018-08-30
  • The Wholesale and Retail Trade of Books and Stationery in South Africa 2018-08-29
  • The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2018-08-02
  • Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2018-07-06
  • Wholesale and Retail of Food 2018-06-26
  • The Tea and Coffee Industry in South Africa 2018-03-27
  • The South African Tobacco Industry 2018-03-26
  • Manufacture of Spices 2018-03-08
  • The Agri-Business Sector in Botswana 2018-03-01
  • The Production, Processing and Preserving of Red Meat in South Africa 2018-02-16
  • The Manufacture of Sugar in South Africa 2018-01-19
  • The Pharmaceutical Industry in South Africa 2017-12-08
  • The Agri-Business Sector in Tanzania 2017-11-27
  • Manufacture of Bakery Products 2017-11-23
  • The Cosmetics Industry 2017-11-14
  • Wholesale and Retail of Food in Senegal 2017-11-07
  • Wholesale and Retail of Food in the Ivory Coast 2017-10-30
  • The Manufacture of Soap and Cleaning Products, Wax and Polishes in South Africa 2017-10-24
  • Manufacture of Dairy Products in South Africa 2017-10-20
  • Wholesale and Retail of Food in the DRC 2017-10-06
  • The Liquor Industry 2017-09-13
  • The Manufacture and Wholesale of Non-Alcoholic Beverages 2017-09-11
  • Wholesale and Retail of Food in Zambia 2017-09-06
  • The Poultry and Egg Industry 2017-08-30
  • The Agri-Business Sector in Zambia 2017-07-01
  • Wholesale and Retail of Food in Ghana 2017-06-27
  • Manufacture of Flour and Grain Mill Products in South Africa 2017-04-24
  • The Fresh Fruit and Vegetables Industry in South Africa 2017-03-20
  • Wholesale and Retail of Food in Tanzania 2017-02-24
  • Retail Trade via Stalls and Markets 2017-01-30
  • Preserving and Processing of Fruit and Vegetables in South Africa 2016-12-19
  • The Beverages Industry in Ethiopia 2016-11-28
  • Manufacture of Prepared Animal Feeds and Pet Food in South Africa 2016-11-24
  • The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2016-11-16
  • Manufacture of Edible Salt 2016-11-02
  • The Pharmaceutical Industry in South Africa 2016-09-12
  • The Poultry and Egg Industry 2016-08-22
  • The Manufacture of Paper and Paper Products 2016-08-19
  • Growing of Crops and Horticulture in Ethiopia 2016-08-03
  • The Beverages Industry in Nigeria 2016-07-22
  • The Liquor Industry 2016-07-15
  • Manufacture of Breakfast Cereals in South Africa 2016-07-02
  • The Production, Processing and Preserving of Red Meat in South Africa 2016-06-17
  • The Confectionery Industry 2016-05-19
  • The Manufacture of Soap and Cleaning Products, Wax and Polishes in South Africa 2016-05-02
  • Manufacture of Pasta 2016-04-18
  • Growing of Crops and Horticulture in Zimbabwe 2016-03-11
  • Manufacture of Dairy Products in South Africa 2016-03-11
  • Wholesale and Retail of Food in Kenya 2016-03-08
  • Wholesale and Retail of Food 2016-03-01
  • The Tea and Coffee Industry in South Africa 2016-02-08
  • The Beverages Industry in Angola 2016-01-25
  • The Beverages Industry in Mozambique 2016-01-25
  • Manufacture of Flour and Grain Mill Products in South Africa 2016-01-11
  • Wholesale and Retail of Food in Ghana 2015-12-15
  • Manufacture of Bakery Products 2015-11-30
  • Manufacture of Spices 2015-11-23
  • The Fresh Fruit and Vegetables Industry in South Africa 2015-11-17
  • The South African Tobacco Industry 2015-11-10
  • The Manufacture of Sugar in South Africa 2015-11-09
  • Manufacture of Cosmetics, Perfumes and Other Toilet Preparations 2015-10-16
  • The Beverages Industry in Ghana 2015-07-31
  • Processing and Preserving of Fruit and Vegetables in South Africa 2015-07-30
  • The Agri-Business Sector in Botswana 2015-04-28
  • Wholesale and Retail of Food in Angola 2015-04-27
  • The Confectionery Industry 2015-04-13
  • The Manufacture of Paper and Paper Products 2015-04-06
  • The Manufacture and Wholesale of Non-Alcoholic Beverages 2015-03-02
  • The Agri-Business Sector in Tanzania 2015-02-27
  • Wholesale and Retail of Food in Nigeria 2015-02-19