SOUTH AFRICA PROCESSED MEAT E-commerce Food Market: A Growing Opportunity – GROWTH, TRENDS, AND FORECASTS (2023 – 2028)
South Africa Processed Meat E-commerce Food Market
In recent years, South Africa has experienced significant growth in its e-commerce industry, and the food sector has been a major contributor to this growth. The increasing popularity of online shopping, along with the growing convenience of food delivery services, has created a large and lucrative market for food e-commerce in South Africa, and the South African processed meat market.
The South African processed meat market is projected to experience significant growth in the next five years, from 2023 to 2028. This growth is driven by several factors, including an increase in consumer demand for convenience foods and a growing population with a higher disposable income.
South Africa Processed Meat E-commerce Food Market HIGHLIGHTS
Revenue in the Meat segment is projected to reach US$95.84m in 2023.
Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 7.42%, resulting in a projected market volume of US$127.60m by 2027.
With a projected market volume of US$13,770.00m in 2023, most revenue is generated in the United States.
In the Meat segment, the number of users is expected to amount to 2.0m users by 2027.
User penetration will be 2.4% in 2023 and is expected to hit 3.2% by 2027.
The average revenue per user (ARPU) is expected to amount to US$64.71.
MARKET DEFINITION
The eCommerce market sub-segment of Meat includes digital sales of fresh meat (e.g., beef, pork, poultry, and mutton) and processed meat (e.g., ham, bacon, sausages, cold cuts, and roasted meat). All monetary figures refer to the annual gross revenue and do not factor in shipping costs.
IN-SCOPE / OUT-OF-SCOPE
IN-SCOPE
Fresh meat
Processed meat
OUT-OF-SCOPE
Meat-based ready-to-eat meals
Market size:
The South African processed meat market was valued at USD 1.82 billion in 2018 and is expected to reach USD 2.40 billion by 2028, growing at a CAGR of 3.2% from 2023 to 2028. The growing demand for convenience foods and the increasing disposable income of the population are the major drivers of this growth. The rise in consumer awareness regarding the health benefits of consuming processed meat products is also contributing to the growth of the market.
Market segmentation:
The market is segmented based on product type, distribution channel, and end-use. The product type segment is further divided into chicken, beef, pork, and others. The distribution channel segment is divided into supermarkets/hypermarkets, specialty stores, and online retail.
The chicken segment is the largest and fastest-growing product type in the market, accounting for over 60% of the market share in 2018. Beef and pork are also popular product types, accounting for 25% and 15% of the market share, respectively. The end-user segment is divided into household and food services.
Product type:
Chicken is the largest product type in the South African processed meat market, accounting for over 60% of the market share in 2018. Beef and pork are also popular product types, accounting for 25% and 15% of the market share, respectively.
Distribution channel:
The market is segmented based on the distribution channel into supermarkets/hypermarkets, specialty stores, and online retail. Supermarkets/hypermarkets are the largest distribution channel, accounting for over 60% of the market share in 2018. Specialty stores and online retail are also significant distribution channels, accounting for 20% and 15% of the market share, respectively. The increasing penetration of e-commerce and the growing popularity of online retail is expected to drive the growth of the online retail segment in the future.
End-use:
The market is segmented based on end-use into household and food service. Households are the largest end-use segment, accounting for over 80% of the market share in 2018 – 2020. Food service is also a significant end-use segment, accounting for 20% of the market share. The growing food service industry and the increasing demand for processed meat products in food service establishments are expected to drive the growth of the food service segment in the future.
Key players: In South Africa Processed Meat Market:
The South African processed meat market is highly competitive, with a large number of players operating in the market. Some of the key players in the market include Tiger Brands, RCL Foods, and Astral Foods. These companies are focusing on expanding their product portfolios and establishing their brand presence through marketing and distribution strategies.
Opportunities: In South Africa Processed Meat Food Market:
The South African processed meat market presents significant opportunities for growth, particularly in the development of new and innovative products and the expansion of the market into new regions. Companies can also explore opportunities in the organic and halal segments, which are growing rapidly in the market.
Challenges: South Africa Processed Meat Market:
The high cost of raw materials, stringent regulations, and the increasing demand for alternative protein sources are some of the major challenges faced by the South African processed meat market. Companies will need to focus on developing cost-effective and sustainable production processes to overcome these challenges and maintain their competitiveness in the market.
South Africa’s E-commerce Food Market: A Growing Opportunity
In recent years, South Africa has experienced significant growth in its e-commerce industry, and the food sector has been a major contributor to this growth. The increasing popularity of online shopping, along with the growing convenience of food delivery services, has created a large and lucrative market for food e-commerce in South Africa.
According to Statista, the revenue generated by the South African food e-commerce market is expected to reach USD 1.12 billion by 2023, growing at a compound annual growth rate (CAGR) of 7.4% from 2018 to 2023. This growth is driven by the increasing demand for convenience and the growing disposable income of the South African population.
The market is segmented into various categories, including online grocery, online food delivery, and online food ordering. Online grocery is the largest and fastest-growing segment, accounting for over 60% of the market share in 2018. Online food delivery and online food ordering are also significant segments, accounting for 25% and 15% of the market share, respectively.
The increasing popularity of online grocery and food delivery services has led to the entry of several new players into the market, resulting in increased competition and the development of new and innovative products and services. Key players in the market include Yum Restaurants, Pick n Pay, and Woolworths, who are focusing on expanding their product offerings and improving their delivery services to stay ahead of the competition.
The South African food e-commerce market presents significant opportunities for growth, particularly in the development of new and innovative products and the expansion of the market into new regions. Companies can also explore opportunities in the organic and halal food segments, which are growing rapidly in the market.
However, the South African food e-commerce market also faces several challenges, including high delivery costs, low internet penetration in some areas, and the need for reliable and efficient delivery services. Companies will need to focus on developing cost-effective and sustainable delivery solutions to overcome these challenges and maintain their competitiveness in the market.
Summarise
In conclusion, the South African processed meat and E-commerce market is expected to experience significant growth in the next five years, driven by the increasing demand for convenience foods and the growing disposable income of the population. Key players in the market will have the opportunity to capitalize on this growth by developing new and innovative products and expanding into new regions. Companies will also need to address the challenges faced by the market and develop sustainable and cost-effective production processes to maintain their competitiveness in the market.
The South African food e-commerce market is a rapidly growing opportunity, driven by the increasing demand for convenience and the growing disposable income of the population. Companies operating in the market will have the opportunity to capitalize on this growth by developing new and innovative products and expanding into new regions. They will also need to address the challenges faced by the market and develop sustainable and cost-effective delivery solutions to maintain their competitiveness in the market.
SOUTH AFRICA PROCESSED MEAT E-commerce Food Market: A Growing Opportunity – GROWTH TREND AND FORECASTS SOUTH AFRICA PROCESSED MEAT E-commerce Food Market
reference
https://www.statista.com/outlook/dmo/ecommerce/food/south-africa
https://www.mordorintelligence.com/industry-reports/south-africa-processed-meat-market