Look South: Opportunities at the Bottom End of Africa
Liz Whitehouse, Consultant, Bord Bia - The Irish Food Board
31st August 2020
As the second largest economy in Africa and accounting for 15% of the continents GDP, South Africa is an important market for Irish food and beverage products. With exports of food and beverage products from Ireland to South Africa totalling €77.7 million in 2019 and growing strongly, the country is the 2nd largest export market for Irish poultry, the 8th largest export market for Irish Whiskey, the 9th largest export market for Irish butter and the 10th largest export market for Irish whey.
South Africa has a sizeable population at 55.8 million. The population is young with 39% of the population under 20 and 58% under 30 years old. With close to 40% of the population having been born fully in the 21st century and a further 20% after 1990, they represent a digital-savvy and globally connected generation of consumers. This is evidenced by Lifestyle Trends similar to those found elsewhere in the world. The Lifestyle trend of Health and Wellbeing has been strongly adopted in South Africa. Consumers are moving towards healthier alternatives with retailers introducing and extending their ranges of “free-from” alternatives which include salt-free, gluten-free, dairy-free, alcohol-free and various plant-based options that support “flexitarian” diets. This trend is also seen in brands moving towards nutritionally complete and enriched product offerings. Allied to this is the Lifestyle trend of Responsible Living which is apparent in retail outlets where paper-based packaging is becoming increasingly prevalent along with sustainably sourced products and ingredients.
South Africa can also be classified as a gateway market as a number of neighbouring countries, especially those that are land-locked, look to South Africa as the source of products. In 2019, South Africa's food and beverage exports to the rest of Africa amounted to €21.4 billion, the largest destination for the country’s food and beverage exports and importantly, the destination for over 50% of South Africa's processed food and beverage exports. This strong trade is supported by the extensive footprint of South African retailers and food service companies in the rest of Africa with a Group such as Shoprite reporting 385 corporate stores across 15 countries in the rest of Africa.
We have completed a South African Market Understanding in order to capture some further key insights to this evidenced important market. It details key lifestyle trends, useful tariff information, country SWOT analysis and a South African market overview. To access and find out more please contact Nicolas Ranninger : Nicolas.Ranninger@bordbia.ie
Sources:
South African Revenue Service Trade Statistics: https://www.sars.gov.za/ClientSegments/Customs-Excise/Trade-Statistics/Pages/Merchandise-Trade-Statistics.aspx )
Statistics South Africa Mid-year Population Estimates https://www.statssa.gov.za/publications/P0302/P03022019.pdf
Shoprite Integrated Annual Report