Trends in South Africa's FMCG Markets 2021: Competition Commission Recommendations to Reduce Dominance of Leading Supermarkets

DUBLIN, Oct. 22, 2021 /PRNewswire/ -- The "Trends In South African FMCG Markets 2021" report has been added to ResearchAndMarkets.com's offering.

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. In total, over 300 local and international companies are profiled in these reports.

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, direct selling, and craft, art and food markets. 

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.

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.

Key Topics Covered:

1. Introduction

2. Description of the Markets
2.1. Industry Value Chain

3. Size of the Markets

4. Competition

5. State of the Markets
5.1. Coronavirus
5.2. Trade
5.3. Corporate Actions
5.4. African Markets

6. Trends
6.1. Innovation
6.2. Digitalisation
6.3. Price Increases
6.4. Investments and Disinvestments

7. PESTLE Analysis

8. Outlook

A Selection of Companies Mentioned Include:

• 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
• AECI Ltd
• Africa Sun Oil Refineries (Pty) Ltd
• Africology (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
• 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
• Astral Operations Ltd
• At Source Handmade Foods (Pty) Ltd
• Barrs Pharmaceuticals Industries (Pty) Ltd
• Beiersdorf Consumer Products (Pty) Ltd
• Bridge Books CC
• C Roelofse
• C Thompson
• Cal-Mo (Pty) Ltd
• California Pharmaceuticals (Pty) Ltd
• Campers Corner Rentals CC
• CANSA (Pty) Ltd
• Charlotte Rhys Manufacturing (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
• Colgate-Palmolive (Pty) Ltd
• Colombo Brew Co (Pty) Ltd
• Columbia Pharmaceuticals (Pty) Ltd
• Convert-A-Roll CC
• Corium Skincare (Pty) Ltd
• Corruseal Group (Pty) Ltd
• Cosmetix (Pty) Ltd
• 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
• CTP Ltd
• Danone Southern Africa (Pty) Ltd
• Datex International CC
• Duma Chemicals (Pty) Ltd
• Ecolab (Pty) Ltd
• EcoZyme Enzymes (Pty) Ltd
• Environ Skin Care (Pty) Ltd
• Epic Foods (Pty) Ltd
• Eskort (Pty) Ltd
• Esse Trust (The)
• Essel Products CC
• Estee Lauder Companies (Pty) Ltd
• Ethnic Candy CC
• Evetech (Pty) Ltd
• Evohealth (Pty) Ltd
• Frut SA (Pty) Ltd
• Future Life Health Products (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
• Golden Spices CC
• Goosebumps (Pty) Ltd
• Grain Field Chickens (Pty) Ltd
• Gumtree South Africa (Pty) Ltd
• Hazel Food CC
• Health Connection Wholefoods (Pty) Ltd
• Heartland Foods (Pty) Ltd
• Heineken South Africa (RF) (Pty) Ltd
• HomeChoice (Pty) Ltd
• Honeybush Natural Products (Pty) Ltd
• House of Aloes (Pty) Ltd (The)
• Hychem (Pty) Ltd
• Incobrands (Pty) Ltd
• Ingrain SA (Pty) Ltd
• Joekels Tea Packers (Pty) Ltd
• Johnson and Johnson (Pty) Ltd
• Kalahari Spa (Pty) Ltd
• Kellogg Company of South Africa (Pty) Ltd

For more information about this report visit https://www.researchandmarkets.com/r/m8351s

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