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

News provided by

Oct 22, 2021, 13:45 ET

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

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1904
Fax (outside U.S.): +353-1-481-1716

SOURCE Research and Markets