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.
Table of Contents
Companies Mentioned
- A J North (Pty) Ltd
- A J Products (Natal) CC
- A J Products (Western Cape) CC
- Acino Healthcare Group (Pty) Ltd
- Acorn Agri and Food Ltd
- Acorn Pharmaceuticals (Pty) Ltd
- Adams Booksellers (Pty) Ltd
- Adcock Ingram Holdings Ltd
- AECI Ltd
- Aerosol and Cosmetic Works CC (The)
- AFGRI Agri Services (Pty) Ltd
- Afgri Poultry (Pty) Ltd
- Afresh Brands Cape (Pty) Ltd
- Afresh Brands KZN (Pty) Ltd
- Africa Spice (Pty) Ltd
- Africa Sun Oil Refineries (Pty) Ltd
- Africology (Pty) Ltd
- Afrikoa (Pty) Ltd
- Afriplex (Pty) Ltd
- Afroberg Tobacco Manufacturing (Pty) Ltd
- AGT Foods (Pty) Ltd
- Agulhas Honeybush Tea CC
- Albion Chemical Company (Pty) Ltd
- Aldor Africa (Pty) Ltd
- Algoa Roller Mills CC
- Alibaba Group Holding Ltd
- Allifa Spices 2004 (Pty) Ltd
- Almansal Exporters (Pty) Ltd
- Almond Creamery (Pty) Ltd
- Alpen Food Company South Africa (Pty) Ltd
- Alzu Ondernemings (Pty) Ltd
- Amalgamated Tobacco Manufacturing (Pty) Ltd
- Amanah Oil CC
- Amanteco (Pty) Ltd
- Amazon.com Inc
- Amina's Wonder Spice Trust
- Amka Products (Pty) Ltd
- Amway South Africa (Pty) Ltd
- Anat Foods (Pty) Ltd
- Anato Investment Company (Pty) Ltd
- Art of Africa CC
- AS Essa Family Trust
- Ascendis Health Ltd
- Aspen Pharmacare Holdings Ltd
- Assagay Coffee CC
- Associated Fruit Processors (Pty) Ltd
- Astral Operations Ltd
- At Source Handmade Foods (Pty) Ltd
- Audacia Stellenbosch Market (Pty) Ltd
- Avera Foods (Pty) Ltd
- Avon Justine (Pty) Ltd
- Azochem Laboratories (Pty) Ltd
- B and B Markets-Hillfox (Pty) Ltd
- Bake Tech (Pty) Ltd
- Bakhresa SA (Pty) Ltd
- Bandini Cheese (Pty) Ltd
- Barnes Tea and Coffee Merchants CC
- Barrs Pharmaceuticals Industries (Pty) Ltd
- Beadica 276 CC
- Bean There Coffee Company (Pty) Ltd
- Beaver Creek (Pty) Ltd
- Beefmaster Kimberley (Pty) Ltd
- Beiersdorf Consumer Products (Pty) Ltd
- Beige Holdings Ltd
- Benwood Manufacturing and Packaging Co (Pty) Ltd (The)
- Bespoke Amenities Co (Pty) Ltd (The)
- Best Tobacco Company (Pty) Ltd
- BIC (South Africa) (RF) (Pty) Ltd
- Bidorbuy (Pty) Ltd
- Bidvest Branded Products Holdings (Pty) Ltd
- Bidvest Paperplus (Pty) Ltd
- Big Daddy's Liquors (Pty) Ltd
- Big Save Distribution Centre (Pty) Ltd
- Bimbo QSR Holdings South Africa (Pty) Ltd
- Bio Earth Manufacturing (Pty) Ltd
- Bioclones (Pty) Ltd
- Biologicals and Vaccines Institute of Southern Africa (Pty) Ltd (The)
- Bitek Industries (Pty) Ltd
- BK Ink CC
- Blinkwater Meule (Pty) Ltd
- Bliss Brands (Pty) Ltd
- Bloemfontein Abattoir (Pty) Ltd
- Bloemhof Salt and Chemical Company (Pty) Ltd
- Boardman Brothers (Pty) Ltd
- Bolt Services ZA (Pty) Ltd
- Book Lounge CC
- Books Magazines and Stationery CC
- Booksite (Pty) Ltd
- BOS Brands (Pty) Ltd
- Branson Chemicals (Pty) Ltd
- Bread Gypsy CC (The)
- Brenner Brands (Pty) Ltd
- Breva Enterprises (Pty) Ltd
- BrewKombucha (Pty) Ltd
- Bridge Books CC
- British American Tobacco South Africa (Pty) Ltd
- Brunational (Pty) Ltd
- Bubble Tea Company (Pty) Ltd (The)
- Bubblestorm Management (Pty) Ltd
- Buttanutt Tree Nut Spreads (Pty) Ltd
- C Roelofse
- C Thompson
- Cal-Mo (Pty) Ltd
- California Pharmaceuticals (Pty) Ltd
- Campers Corner Rentals CC
- CANSA (Pty) Ltd
- Canway (Pty) Ltd
- Cape Almonds (Pty) Ltd
- Cape Cookies (Pty) Ltd
- Cape Hot House Vegetables CC
- Cape Natural Tea Products (Pty) Ltd
- Cape Town Toiletry Company (Pty) Ltd (The)
- Capekaroo International (Pty) Ltd
- Caprichem (Pty) Ltd
- Caring Candies CC
- Carmien Tea (Pty) Ltd
- Carnilinx (Pty) Ltd
- Carolina Roller Meule (Pty) Ltd
- Castle Paper Rolls CC
- Caturra Coffee Company (Pty) Ltd (The)
- Catwalk Cosmetic Laboratories (Pty) Ltd
- Cavalier Abattoir (Pty) Ltd
- CAVI Brands (Pty) Ltd
- Caxton and CTP Publishers and Printers Ltd
- Celltone (Pty) Ltd
- Cerebos Ltd
- Ceres Fruit Processors (Pty) Ltd
- Chalmar Beef (Pty) Ltd
- Chamdor Meat Packers (Pty) Ltd
- Champ's Choice Feeds (Pty) Ltd
- Charlotte Rhys Manufacturing (Pty) Ltd
- Chemcape (Pty) Ltd
- Chemetall (Pty) Ltd
- Chemfit Fine Chemicals (Pty) Ltd
- Chemical Convertors (Pty) Ltd
- Chemical Logistics Industrial Speciality Chemicals CC
- Chemtron Holdings (Pty) Ltd
- Chicory SA (Pty) Ltd
- Chipkins Puratos (Pty) Ltd
- Chocolate Time CC
- Chocolats Marionnettes CC
- Chohans Spice (Pty) Ltd
- Christelike Uitgewersmaatskappy (Pty) Ltd
- Cipla Medpro South Africa (Pty) Ltd
- Circular Office Supplies and Printers CC
- Clarins (South Africa) (Pty) Ltd
- Clicks Group Ltd
- Clipper Coffee and Tea CC
- Clover SA (Pty) Ltd
- CNA Operations (Pty) Ltd
- Coca-Cola Beverages Africa (Pty) Ltd
- Coca-Cola Peninsula Beverages (Pty) Ltd
- Coca-Cola Sabco (Pty) Ltd
- Coega Dairy (Pty) Ltd
- Colgate-Palmolive (Pty) Ltd
- Colombo Brew Co (Pty) Ltd
- Columbia Pharmaceuticals (Pty) Ltd
- CoMED Health (Pty) Ltd
- Continental Paper and Packaging CC
- Convert-A-Roll CC
- Corium Skincare (Pty) Ltd
- Corruseal Group (Pty) Ltd
- Cosmetix (Pty) Ltd
- CosQ Manufacturing CC
- Cotton On South Africa (Pty) Ltd
- Country Bird Holdings (Pty) Ltd
- Creative Flavors International (Pty) Ltd
- Crede Oils (Pty) Ltd
- Creighton Products (Pty) Ltd
- Crookes Brothers Ltd
- Crown Chickens (Pty) Ltd
- Crown Food Group (Pty) Ltd
- Crystal Paper Group (Pty) Ltd
- Crystal Salt CC (The)
- CTP Ltd
- D and A Cosmetics (Pty) Ltd
- D H Brothers Industries (Pty) Ltd
- Daisy Health Foods CC
- Danone Southern Africa (Pty) Ltd
- Darling Olives (Pty) Ltd
- Darling Romery (Pty) Ltd
- Datex International CC
- Dawnlight Investments 101 (Pty) Ltd
- De Rustica Estates (Pty) Ltd
- De Villiers Chocolate (Pty) Ltd
- Deli-Spices (Pty) Ltd
- Denmar Estates (Pty) Ltd
- Deon Schoeman CC
- Dewfresh (Pty) Ltd
- Diageo South Africa (Pty) Ltd
- Diamonds Discount Liquor (Pty) Ltd
- Dicks Sweets CC
- Dis-Chem Pharmacies Ltd
- Diversey South Africa (Pty) Ltd
- Donald Brown Group (Pty) Ltd
- Doornplaat Abattoir (Pty) Ltd
- Douglasdale Dairy (Pty) Ltd
- Dried Fruit Direct Marketing (Pty) Ltd
- Duma Chemicals (Pty) Ltd
- Dwaggas Soutwerke (Pty) Ltd
- DWR Hertzog
- Dynachem (Pty) Ltd
- Dynamic Fibre Moulding (Pty) Ltd
- E Akhalwaya and Sons CC
- Earth Fair Market (Pty) Ltd
- East London Abattoir (Pty) Ltd
- Eastern Trading Co (Pty) Ltd
- Ebinter Trading and Projects (Pty) Ltd
- Ecolab (Pty) Ltd
- EcoZyme Enzymes (Pty) Ltd
- Ekhamanzi Springs (Pty) Ltd
- Elangeni Oil (Pty) Ltd
- Elegant Line Trading 237 (Pty) Ltd
- Elgin Poultry Abattoir (Pty) Ltd
- Elizabeth Arden (South Africa) (Pty) Ltd
- Empirestate Trading (Pty) Ltd
- Enebev (Pty) Ltd
- Environ Skin Care (Pty) Ltd
- Epic Foods (Pty) Ltd
- Epko Oil Seed Crushing (Pty) Ltd
- Eskort (Pty) Ltd
- Esse Trust (The)
- Essel Products CC
- Estee Lauder Companies (Pty) Ltd
- Estoril Books and Stationers (Fourways) (Pty) Ltd
- Ethnic Candy CC
- Evetech (Pty) Ltd
- Evohealth (Pty) Ltd
- Exclusive Books Group (Pty) Ltd
- Executive Information Services CC
- Exim International (Pty) Ltd
- Exotic Spices CC
- F G La Pasta (Pty) Ltd
- Fair Cape Dairies (Pty) Ltd
- Fairfield Dairy (Pty) Ltd
- Family Market Holdings (Pty) Ltd
- Famous Brands Coffee Company (Pty) Ltd
- Famous Brands Ltd
- Far End Dairy (Pty) Ltd
- Farmgate Dairy (Pty) Ltd
- Fashion United SA (Pty) Ltd
- Ferrero South Africa (Pty) Ltd
- Filtracell (Pty) Ltd
- Flip File (Pty) Ltd
- Fogarty's Bookshop CC
- Folha Manufacturers (Pty) Ltd
- Food Lovers Holdings (Pty) Ltd
- Forms Media Independent (Africa) (Pty) Ltd
- Fortified Foods Marketing (Pty) Ltd
- Foschini Group Ltd (The)
- Fourie's Poultry Farms (Pty) Ltd
- Fournos Group (Pty) Ltd
- Frank R Thorold (Pty) Ltd
- Freddy Hirsch Group (Pty) Ltd
- Free State Oil (Pty) Ltd
- Freedom Stationery (Pty) Ltd
- Fresenius Kabi Manufacturing SA (Pty) Ltd
- Froneri South Africa (Pty) Ltd
- Frut SA (Pty) Ltd
- Future Life Health Products (Pty) Ltd
- G M Pharmaceuticals (Pty) Ltd
- Galderma Laboratories South Africa (Pty) Ltd
- Gattis Ice Cream (Pty) Ltd
- Gayatri Paper Mills (Pty) Ltd
- Ghaapseberg Foods CC
- Giants Canning CC
- Gideon Milling (Pty) Ltd
- Givaudan South Africa (Pty) Ltd
- Glaxosmithkline South Africa (Pty) Ltd
- Gledhow Sugar Company (Pty) Ltd
- Global Coffee Exports Ltd
- Global Macadamias (Pty) Ltd
- Glutagon (Pty) Ltd
- Godrej South Africa (Pty) Ltd
- Godrich Flour Mills (Pty) Ltd
- Gold Leaf Tobacco Corporation (Pty) Ltd
- Golden Peanut and Tree Nut SA (Pty) Ltd
- Golden Spices CC
- Goosebumps (Pty) Ltd
- Grain Field Chickens (Pty) Ltd
- Granor-Passi (Langkloof) (Pty) Ltd
- Granor-Passi (Pty) Ltd
- Green Health Innovations (Pty) Ltd
- Green Home Products (Pty) Ltd
- Greenline Distributors (Pty) Ltd
- Griekwaland Wes Korporatief Ltd
- Gumtree South Africa (Pty) Ltd
- Happy Culture Kombucha (Pty) Ltd
- Hargraves Library Service (Pty) Ltd
- Hazel Food CC
- Health Connection Wholefoods (Pty) Ltd
- Heartland Foods (Pty) Ltd
- Heineken South Africa (RF) (Pty) Ltd
- Henkel South Africa (Pty) Ltd
- Henmin Filters (Pty) Ltd
- Hersol Manufacturing Laboratories (Pty) Ltd
- Hessequa Abattoir (Pty) Ltd
- Home of Cut Rag (Pty) Ltd
- HomeChoice (Pty) Ltd
- Honest Chocolate (Pty) Ltd
- Honey Bush Processing (Pty) Ltd
- Honeybush Natural Products (Pty) Ltd
- Hotel Lima Whiskey CC
- House of Aloes (Pty) Ltd (The)
- House of Natural Butters (Pty) Ltd
- Hubers CC
- Huguenot Fine Chocolates CC
- Huhtamaki South Africa (Pty) Ltd
- Hychem (Pty) Ltd
- I Heart Market (Pty) Ltd
- I L Molino CC
- I Love Midlands Market (Pty) Ltd
- Illovo Sugar Africa (Pty) Ltd
- Imana Foods (SA) (Pty) Ltd
- Imbalie Beauty Ltd
- IMPTOB South Africa (Pty) Ltd
- In 2 Food Group (Pty) Ltd
- Ina Paarman's Kitchen (Pty) Ltd
- Incobrands (Pty) Ltd
- Indigo Brands (Pty) Ltd
- Industroclean (Pty) Ltd
- Infection Protection Products (Pty) Ltd
- Ingrain SA (Pty) Ltd
- International Tube Technology (Pty) Ltd
- Interstat Stationery (Pty) Ltd
- Irene At Smuts (Pty) Ltd
- Isabella Garcia International (Pty) Ltd
- ISlices Manufacturing (Pty) Ltd
- J Wollbrandt
- Jade E-Services South Africa (Pty) Ltd
- JD Consumer Electronics and Appliances (Pty) Ltd
- Joe Soap CC
- Joekels Tea Packers (Pty) Ltd
- Johnson and Johnson (Pty) Ltd
- JT International South Africa (Pty) Ltd
- Juta and Company (Pty) Ltd
- K and F Nel Enterprises CC
- Kalahari Spa (Pty) Ltd
- Kalkpoort Soutwerke CC
- Kamersvol Geskenke CC
- Karan Beef (Pty) Ltd
- Kees Beyers Chocolate CC
- Kellogg Company of South Africa (Pty) Ltd
- Kellogg Tolaram South Africa (Pty) Ltd
- Kemklean (Pty) Ltd
- Kersia SAS
- Kevali
Methodology
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