The Wholesale and Retail of Food in South Africa 2025

This report on the wholesale and retail of food in South Africa includes comprehensive information on wholesalers and retailers, informal traders and buying groups. Aspects covered include retail, food and wholesale revenue, volumes, consumption, employment, food prices and food security. It also examines major trends such as discount retail and online platforms, and provides information and updates on notable players and corporate actions. There are profiles of 18 companies such as major players Shoprite, Pick n Pay, Woolworths and Spar, and wholesalers, distributors and buying groups such as Devland, Elite Star Trading and Kit Kat.

Introduction

• Food wholesale and retail is a cornerstone of the economy, playing a pivotal role in food distribution, job creation and food security.
• The industry operates through interconnected players with distinct roles, including corporate and independent wholesalers, hybrid models, formal retailers and informal traders.
• The industry is dominated by large, well-established retail players.
• Key trends include ecommerce growth, with online platforms expanding rapidly.
• Trends are driven by consumer demand for convenience, prioritising local sourcing and sustainable packaging, growing sales of private-label products, integration of informal traders, investments in renewable energy and cold chain management.

Trends

• Adoption of AI and machine learning.
• Consumer price sensitivity and shift toward value-for-money products.
• Enhanced loyalty programmes.
• Expanding selection of plant-based and vegan products.
• Expansion of discount-focused retail chains.
• Food waste reduction initiatives.
• Formal retailers are exploring partnerships with spaza shops.
• Growing preference for locally produced food.
• Growth in convenience stores and small-format outlets.
• Growth in eco-friendly packaging.
• Growth in store-brand products.
• Increase in consumers buying in bulk.
• Increased demand for organic, gluten-free, and low-sugar products.
• Integrating stores and platforms, with click-and-collect or delivery services.
• Large retailers expanding into underserved small towns, township and rural areas.
• Online shopping growth.

Opportunities

• Collaboration with spaza shops
• Convenience market expansion.
• Expansion into underserved areas.
• Growth of ecommerce.
• Growth of private labels.
• Healthier options such as organic, gluten-free and fortified foods.
• Indigenous and niche products.
• Innovation in technology.
• Last-mile delivery and partnerships with delivery platforms.
• Ready-to-eat and pre-prepared meals.
• Renewable energy investment.
• Sourcing products from local farmers and suppliers.
• Sustainable packaging and organic products.
• Vegan and plant-based products.

Challenges

• Climate change, water scarcity and waste management.
• Consumer behaviour changes.
• Demand for sustainability.
• Dominance of large retailers.
• Economic volatility and uncertainty.
• Global and local supply chain volatility.
• Informal sector competition.
• Logistical inefficiencies.
• Market saturation in urban areas.
• Ongoing competition law scrutiny.
• Operational disruptions and cold chain breakdowns.
• Regulatory and compliance burden.
• Rising food prices and input costs.
• Shift to ecommerce.
• Skills shortages.
• Technological barriers.

Outlook

• The industry faces a mixed outlook, with challenges such as market saturation and maturity and low economic growth limiting growth.
• Opportunities shaped by evolving consumer behaviour, technological advancements, ecommerce, discount retail and sustainability are stimulating growth.
• Online shopping and omnichannel models are expected to continue to evolve, with retailers investing heavily in ecommerce platforms and delivery logistics to meet demand.
• The industry is expected to benefit from a rise in consumer spending after several challenging years, with discount retailers expected to perform well.
• Large retailers continue to expand their footprint in townships, rural areas, and low-income neighbourhoods.