Summary
Food and grocery accounted for 54.8% of total market retail sales in 2014. From ZAR514 billion in 2014, the food and grocery retail market is anticipated to grow at a CAGR of 6.29% over the forecast period, to reach ZAR697 billion by 2019. Rising disposable income, an ongoing trend of rapid urbanization, the adoption of private label brands, and increasing competition among retailers will transform the consumption pattern among consumers.
Key Findings
Packaged food is the largest product category sold as of 2014.
Private labels brands are gaining increasing adoption among the South Africa consumers.
Sales through online channel are expected to grow at a CAGR of 18.4% during 2014-2019
Synopsis
Food and Grocery Retailing in South Africa Market Summary and Forecasts is a detailed sector report providing a comprehensive analysis of the emerging trends, forecasts and opportunities to 2019.
What else does this report offer?
A thorough analysis of consumer trends changing economic and population factors
Both qualitative and quantitative insights and analysis of the shifting food and grocery retail dynamics for drinks, household products, packaged food, tobacco and unpackaged food from 2009 to 2019
Sales of food and grocery products through the following channels from 2009 to 2019: Hypermarkets, supermarkets and hard-discounters; food and drinks specialists; convenience stores (including Independents) and gas stations; cash and carries and warehouse clubs; other general and non-specialist direct retailers; value, variety stores and general merchandise retailers; online; drug stores and health and beauty stores; vending machines; duty free retailers; department stores; other specialist retailers
An overview of key food and grocery retailers operating across South Africa and their presence across distribution channels
Reasons To Buy
Gain a comprehensive knowledge on food and grocery sector in the South Africa retail market and develop a competitive advantage from the start of your supply chain
Investigate current and forecast behaviour trends in food and grocery category to identify the best opportunities to exploit
Analyze the recommended actions to align your marketing strategies with the crucial trends influencing the consumer behavior
Understand the fastest growing categories including drinks, household products, packaged food, unpackaged food and tobacco in the market, with insights on performance across key channels from 2009, with forecasts until 2019
Explore novel opportunities that will allow you to align your product offerings and strategies to meet demand by analyzing the vital economic and population trends, key consumer and technology trends influencing the food and grocery market
Analysis of key international and domestic players operating in the food and grocery market including store counts and revenues that give you a competitive edge identify opportunities to improve your market share
Table Of Contents
1Introduction
1.1 What is this Report About?
2 Executive Summary and Outlook
3 Market Context
3.1 Retail Scenario in South Africa
3.1.1 Stable economic conditions bode well for retailers
3.1.2 Being a consumption led economy augurs well for retailers
3.1.3 Services sector is the major sector for employment
3.1.4 Unemployment and labor unrest pose a challenge to the countrys economy
3.1.5 Rising inflation rates - a key concern for retailers
3.1.6 Steady rise in consumption expenditure- an opportunity for retailers
3.1.7 Increasing urbanization offers growth opportunities for retailers
3.2 A major chunk of the population are young - a positive scenario for retail
4 South African Shoppers
4.1 South Africa presents more challenges than opportunities to newcomers
4.2 M-commerce on a rise as consumers increasingly adopt smartphones
4.3 Demand for private labels on a rise
4.4 Rising HNWI and aspirational middle class will support growth
4.5 Inbound tourism to boost retail sales
5 Doing Business in South Africa
5.1 Summary
5.1.1 Bureaucracy
5.1.2 Business culture
5.1.3 Infrastructure and logistics
5.2 Business reforms in South Africa
6 Retail - Product Sectors
6.1 Product Sector Analysis
6.1.1 Food and Grocery
6.2 Food and Grocery Category Overview
6.2.1 Food and Grocery by Channel
6.2.2 Food and Grocery by Category
6.3 Food and Grocery Category Analysis
6.3.1 Drinks
6.3.2 Household Products
6.3.3 Packaged Food
6.3.4 Tobacco
6.3.5 Unpackaged Food
6.4 Major Retailers
6.4.1 Food and Grocery
7 Appendix
7.1 Definitions
7.1.1 This report provides 2014 actual sales; while forecasts are provided for 2015 - 2019
7.2 Summary Methodology
7.2.1 Overview
7.2.2 The triangulated market sizing method
7.2.3 Industry surveys in the creation of retail market data
7.2.4 Quality control and standardized processes
7.3 About Conlumino
7.4 Disclaimer
List Of Tables
Table 1: South Africa Food and Grocery Retail Sales (ZAR mn), by Channel Group, 2009-2014
Table 2: South Africa Food and Grocery Retail Sales Forecast (ZAR mn), by Channel Group, 2014-2019
Table 3: South Africa Food and Grocery Retail Sales (US$ mn), by Channel Group, 2009-2014
Table 4: South Africa Food and Grocery Retail Sales Forecast (US$ mn), by Channel Group, 2014-2019
Table 5: South Africa Food and Grocery Retail Segmentation (% value), by Channel Group, 2009-2019
Table 6: South Africa Food and Grocery Retail Sales (ZAR mn), by Category 2009-2014
Table 7: South Africa Food and Grocery Retail Sales Forecast (ZAR mn), by Category 2014-2019
Table 8: South Africa Food and Grocery Retail Sales (US$ mn), by Category, 2009-2014
Table 9: South Africa Food and Grocery Retail Sales Forecast (ZAR mn), by Category 2014-2019
Table 10: South Africa Food and Grocery Retail Segmentation (% value), by Category, 2009-2019
Table 11: South Africa Drinks Retail Sales (ZAR mn), by Channel Group, 2009-2014
Table 12: South Africa Drinks Retail Sales Forecast (ZAR mn), by Channel Group, 2014-2019
Table 13: South Africa Drinks Retail Sales (US$ mn), by Channel Group, 2009-2014
Table 14: South Africa Drinks Retail Sales Forecast (US$ mn), by Channel Group, 2014-2019
Table 15: South Africa Drinks Retail Segmentation, by Channel Group, 2009-2019
Table 16: South Africa Household Products Retail Sales (ZAR mn), by Channel Group, 2009-2014
Table 17: South Africa Household Products Retail Sales Forecast (ZAR mn), by Channel Group, 2014-2019
Table 18: South Africa Household Products Retail Sales (US$ mn), by Channel Group, 2009-2014
Table 19: South Africa Household Products Retail Sales Forecast (US$ mn), by Channel Group, 2014-2019
Table 20: South Africa Household Products Retail Segmentation, by Channel Group, 2009-2019
Table 21: South Africa Packaged Food Retail Sales (ZAR mn), by Channel Group, 2009-2014
Table 22: South Africa Packaged Food Retail Sales Forecast (ZAR mn), by Channel Group, 2014-2019
Table 23: South Africa Packaged Food Retail Sales (US$ mn), by Channel Group, 2009-2014
Table 24: South Africa Packaged Food Retail Sales Forecast (US$ mn), by Channel Group, 2014-2019
Table 25: South Africa Packaged Food Retail Segmentation, by Channel Group, 2009-2019
Table 26: South Africa Tobacco Retail Sales (ZAR mn), by Channel Group, 2009-2014
Table 27: South Africa Tobacco Retail Sales Forecast (ZAR mn), by Channel Group, 2014-2019
Table 28: South Africa Tobacco Retail Sales (US$ mn), by Channel Group, 2009-2014
Table 29: South Africa Tobacco Retail Sales Forecast (US$ mn), by Channel Group, 2014-2019
Table 30: South Africa Tobacco Retail Segmentation, by Channel Group, 2009-2019
Table 31: South Africa Unpackaged Food Retail Sales (ZAR mn), by Channel Group, 2009-2014
Table 32: South Africa Unpackaged Food Retail Sales Forecast (ZAR mn), by Channel Group, 2014-2019
Table 33: South Africa Unpackaged Food Retail Sales (US$ mn), by Channel Group, 2009-2014
Table 34: South Africa Unpackaged Food Retail Sales Forecast (US$ mn), by Channel, 2014-2019
Table 35: South Africa Unpackaged Food Retail Segmentation, by Channel Group, 2009-2019
Table 36: Key Food and Grocery Retailers in South Africa
Table 37: South Africa Exchange Rate ZAR-USD (Annual Average), 2009-2014
Table 38: South Africa Exchange Rate ZAR-USD (Annual Average), 2015-2019 Forecasts
Table 39: Conlumino Retail Channel Definitions
Table 40: Conlumino Retail Category Definitions
List Of Figures
Figure 1: GDP Value (US$ billion), 2009-2014
Figure 2: Growth Rate of GDP (US$ billion, %), 2009-2014
Figure 3: GDP Value and Growth (AUD billion, %), 2008-2014
Figure 4: Forecasts for GDP Value and Growth (AUD billion, %), 2014-2019
Figure 5: Gross Domestic Savings (% of GDP), 2004-2014
Figure 6: Share of Employment by Sector (%), 2004 and 2014
Figure 7: Unemployment Rate (%), 2004-2014
Figure 8: Inflation Growth Rates (%), 2004-2014
Figure 9: Household Consumption Expenditure of South Africa (US$ billion), 2004 and 2014
Figure 10: Household Consumption Expenditure of Major Countries (US$ billion), 2014
Figure 11: Growth of Household Consumption Expenditure (US$, %), 2004-2014
Figure 12: Rural and Urban Populations (millions) 2004, 2014 and 2019
Figure 13: Total Population and Growth Rate (Millions, %), 2004-2019
Figure 14: Population Split by Gender (%), 2014 and 2019E
Figure 15: Population Split by Age Group (%), 2014 and 2019
Figure 16: Per Capita Spend on Retail (ZAR), 2006 and 2014
Figure 17: Per Capita Spend (ZAR)and Total Retail Spend by Age Group (%), 2006 and 2019
Figure 18: Challenges outweigh the opportunities present in the South African market
Figure 19: Mobile shopping on the rise
Figure 20: Private labels rise on the back of high unemployment and low household income
Figure 21: Tourist arrivals to South Africa, (in thousands), 2009 and 2014
Figure 22: Key Components of Doing Business in South Africa
Figure 23: Share of Food and Grocery in overall Retail 2014 and 2019
Figure 24: Retail Sales Value and Growth (ZAR billion, %) of Food and Grocery 2014-2019
Figure 25: Spend per Head on Food and Grocery 2014 and 2019
Figure 26: Online Spend in Food and Grocery 2014-2019
Figure 27: Online Share of total Food and Grocery Spend 2014 and 2019
Figure 28: Spending per Channel in Food and Grocery (%) 2014 and 2019
Figure 29: South Africa Food and Grocery Retail Sales and Forecast (ZAR mn), by Channel Group, 2009-2019
Figure 30: South Africa Food and Grocery Retail Market Dynamics, by Channel Group, 2009-2019
Figure 31: South Africa Food and Grocery Retail Sales and Forecast (ZAR mn), by Category 2009-2019
Figure 32: South Africa Food and Grocery Retail Market Dynamics, by Category 2009-2019
Figure 33: South Africa Drinks Retail Sales and Forecast (ZAR mn), by Channel Group, 2009-2019
Figure 34: South Africa Household Products Retail Sales and Forecast (ZAR mn), by Channel Group, 2009-2019
Figure 35: South Africa Packaged Food Retail Sales and Forecast (ZAR mn), by Channel Group, 2009-2019
Figure 36: South Africa Tobacco Retail Sales and Forecast (ZAR mn), by Channel Group, 2009-2019
Figure 37: South Africa Unpackaged Food Retail Sales and Forecast (ZAR mn), by Channel Group, 2009-2019
Figure 38: The Triangulated Market Sizing Methodology
