South Africa’s food retail and wholesale sector is one of the country’s most dynamic industries, directly linked to household consumption, employment, and food security. It reflects both the opportunities and pressures shaping the economy in 2025 and beyond. 

These insights are drawn from research available via the African Industry Reports service offered by Sabinet. As the trusted access point for Who Owns Whom’s authoritative industry analysis, Sabinet provides business, government, and research stakeholders with reliable information to understand and anticipate Africa’s evolving industries. Users gain authoritative, up-to-date content and data that connects local dynamics with broader economic trends. 

According to the latest food retail and wholesale industry report, this sector continues to expand, but at a pace shaped by consumer behaviour, technology, and tough trading conditions. The report highlights critical shifts in the industry amid ongoing debates about VAT increases and changing spending patterns. 

Growth drivers in the market 

Urbanisation and the steady rise of the middle class continue to shape food retail and wholesale growth. South Africans increasingly prioritise convenience, pushing demand for ready-to-eat meals, online shopping, and smaller, accessible store formats. Ecommerce platforms, boosted by reliable last-mile delivery services, are capturing more consumers than ever before. 

Another key factor is the expansion of private-label products, which appeal to budget-conscious shoppers. At the same time, investment in supply chain technologies is improving efficiency, helping retailers and wholesalers respond to demand fluctuations more effectively. 

Challenges weighing on performance 

Despite these growth areas, retailers and wholesalers face a complex environment. Rising energy costs impact cold chain management and store operations. High food inflation continues to squeeze household budgets, pushing consumers towards value-driven purchasing. 

Supply chain disruptions, including delays at ports and rising global input costs, also limit profitability. Informal retailers, such as spaza shops and street traders, remain a strong competitive force, often better positioned to serve rural and township markets. 

Shifting competitive landscape 

The balance between formal and informal markets is central to understanding the sector’s trajectory. Discounters and independent wholesalers are gaining ground by offering lower prices and flexible purchasing models, challenging traditional supermarket dominance. 

Meanwhile, sustainability trends are also shaping strategies. Retailers are investing in renewable energy solutions, reducing food waste, and exploring local sourcing to stabilise supply and reduce carbon footprints. 

Why these insights matter 

For policymakers, understanding how food retailers and wholesalers adapt to inflation and supply chain pressures is vital to ensuring food security. For businesses, insights into consumer spending patterns and emerging technologies are critical for competitive advantage. 

Accessing the full report 

The Food Retail & Wholesale Market 2025 industry report provides comprehensive data on market size, competitors, regulatory factors, and opportunities. Through the African Industry Reports, this report can be purchased as a single document via ecommerce or accessed through an annual subscription.  

All reports are searchable, indexed making it easy to find relevant, accurate, and current information. Each report is also linked to related legislative information when South Africa-based, helping users explore connected topics with ease. 

By using Sabinet, businesses, policymakers, and researchers can stay ahead in this evolving sector with authoritative, up-to-date content. Explore the complete report and other African Industry Reports via Sabinet to gain a competitive advantage and make informed decisions!