When the lockdown was announced in South Africa there was widespread concern about grocery retailers running out of food which resulted in some initial stockpiling. Uncertain as to how long the lockdown might last consumers started purchasing products with a long shelf life in bulk.
Tiger Consumer Brands Ltd continued to lead processed fruit and vegetables in 2020 largely due to its widely popular Koo brand of shelf stable fruit and vegetables. Nevertheless, the company has lost share in 2020 as price competition has become stiffer.
Foodservice sales saw a significant slump in volume terms in 2020 as nationwide restrictions limited the ability of outlets to operate as normal. Furthermore, even as restrictions have been lifted many consumers have remained cautious about leaving their homes, including to visit foodservice outlets.
There is likely to remain a preference for fresh fruit and vegetables over processed alternatives over the forecast period, mainly due to their affordability and the negative perceptions of processed variants. Except for shelf stable beans, processed fruit and vegetables carry higher unit prices and tend to be targeted at high-income demographics.
Shelf stable beans are popular in South Africa because of their versatility for use in a number of local dishes, such as chakalaka, a South African vegetable relish, usually spicy, that is traditionally served with bread, pap (maize porridge), samp (dried corn kernels), stews or curries. Shelf stable beans also provide affordable, filling and nutritious protein for all LSM groups.
Consumers are already under financial pressure and with further job losses expected due to COVID-19 the situation is unlikely to improve in the short term in South Africa. As such, obtaining the best prices is expected to remain the key focus of consumers, with this informing the strategies of manufacturers and retailers.
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Understand the latest market trends and future growth opportunities for the Processed Fruit and Vegetables industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Processed Fruit and Vegetables research and analysis database.
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