Report Coverage
This report is part of a series of Who Owns Whom trends reports, and it expands on trends and developments highlighted in various FMCG-related reports produced by Who Owns Whom. This report covers the latest trends in South Africa including online trends, buying down, sustainability, waste and loss prevention, and Africa as a driver of growth.
Introduction
• The retail sales industry contributed more than R1tn in sales to South Africa’s economy in 2021, with FMCG accounting for more than 70%.
• The sector is defensive, evident in the growth in sales at the height of the pandemic while non-FMCG products declined.
• Consumers’ economic hardship is refocusing interest in private label products and buying down.
• Sustainability and health consciousness have become increasingly important, while convenience is driving the e-retail market.
• Other trends are changing shopping frequencies and basket sizes, the use of artificial intelligence and big data, Black Friday and pressure to buy local.
• Challenges including a hostile economic environment, electricity constraints, logistics barriers and illicit trade.
Selected Highlights
• Over the last decade, sales of pharmaceutical goods, cosmetics and toiletries grew the fastest at an average of 3.1% per annum, followed by sales by general dealers at 1.6% and food, beverages and tobacco by specialised stores at 0.9%.
• After the onset of the pandemic and the Russia-Ukraine war, high volatility in growth rates has been experienced, largely for statistical reasons and not an indication of higher rates of sales (or declines).
• The channel with the largest number of stores was house shops(spazas or kiosks), with 52,913. Gauteng had the largest number of spaza shops at 22,802, two times more than KwaZulu-Natal and three times that of the Western Cape.
• The Netherlands was the largest export destination, receiving FMCG worth R18.4bn (9.3% share of total), followed by the UK with R13.9bn (7.0%) and Botswana with R13.4bn (6.8%).
• Most FMCG imports in 2021 were from India (R13.8bn), followed by Eswatini (R10.9bn), Germany (R8.7bn), France (R7.7bn) and the US (R
Outlook
• The pandemic and the Russia-Ukraine war are still acting as catalysts for change in the industry.
• Trading conditions will remain tough as low economic growth, unemployment and high interest rates inhibit consumers’ ability to spend.
• The biggest challenge for retailers is to manage input and operating costs such as fuel, transport, electricity and labour costs.
• A solution to the energy crisis is urgently needed.
• The outlook remains positive, as facing and overcoming such challenges are in the DNA of FMCG retailers.
Full Report
R 9 500.00(ZAR) estimated $506.21 (USD)*
Historical Reports
FMCG Trends in South Africa 2021-04-15
R 6 500.00(ZAR) estimated $346.35 (USD)*
View Report Add to CartTable of Contents
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1. | INTRODUCTION | 1 |
2. | THE FMCG MARKET | 1 |
2.1. | General Market Description | 1 |
2.2. | Industry Value Chain | 3 |
3. | SIZE OF THE MARKET | 4 |
3.1. | Total FMCG Retail Sector Size | 4 |
3.2. | Number of SME Players in the FMCG Retail Sector | 9 |
4. | FMCG CROSS-BORDER TRADE | 11 |
5. | FMCG PRICES | 21 |
6. | TRENDS IN THE FMCG SECTOR | 27 |
6.1. | Private Label and Brand Loyalty | 27 |
6.2. | A Shift to Online | 28 |
6.3. | Buying Down | 30 |
6.4. | Consumers Are More Informed | 31 |
6.5. | Sustainability | 31 |
6.6. | Healthy Products | 32 |
6.7. | Africa as Driver of Retail Growth | 33 |
6.8. | Food Waste and Loss Prevention | 35 |
6.9. | Spaza Shops | 36 |
6.10. | Other Trends | 36 |
7. | CHALLENGES FACING THE FMCG SECTOR | 37 |
8. | COMPETITION | 42 |
9. | OUTLOOK | 43 |
10. | REFERENCES | 43 |
10.1. | Publications | 43 |
10.2. | Websites | 44 |
APPENDIX 1 | 45 | |
List of Sectors | 45 | |
APPENDIX 2 | 46 | |
List of HS Codes Covered | 46 |