South Africa has firmly established itself as Africa’s packaged food powerhouse, with retail sales reaching $18.5 billion in 2024.
Rising consumer demand, a well-organized retail sector, and a strong appetite for convenience have given the country the largest share of Africa’s fast-growing food market.
Backed by vertically integrated supply chains and a concentrated supermarket sector, South Africa continues to outpace regional peers and secure its leadership position.
In contrast, Nigeria, despite being Africa’s most populous nation, recorded only $4.7 billion in packaged food sales, while Kenya posted $5.1 billion.
North African economies performed stronger, with Morocco reaching $11.5 billion and Egypt at $11.2 billion, underscoring the divide between Africa’s mature and developing consumer markets.
South Africa’s dominance also extends onto the global stage. Its $18.5 billion in sales surpasses Thailand’s $17 billion, while Saudi Arabia leads further ahead with $25 billion, reflecting the Gulf’s significant consumer spending power, according to Business Insider.
The foundation of South Africa’s lead lies in its vertically integrated supply chains and the concentration of its supermarket sector.
This structure enables food companies to combine mass-market reach with value-added strategies, unlocking economies of scale, operational efficiencies, and steady cash flows from private-label contracts.
Beyond domestic consumption, South Africa’s role as a processing and export hub for SADC markets broadens its influence, offering cross-border growth prospects and relative resilience compared with its African peers.
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Africa’s packaged food market, however, continues to face headwinds. Mordor Intelligence projects the global packaged food market to hit USD 6.39 trillion in 2025 and rise to USD 7.94 trillion by 2030, at a compound annual growth rate of 4.44 percent.
The Asia-Pacific region holds a commanding 32.6 percent share and is forecast to grow at 7.56 percent CAGR.
Latin America is regaining momentum thanks to greater macroeconomic stability, grocery-chain expansion, and click-and-collect models.
The Middle East and Africa, though still underpenetrated, present long-term upside as modern retail expands and local processing attracts fresh investment.
Most African economies, however, continue to struggle with fragmented supply chains, weak logistics, and limited cold storage capacity.
These challenges hinder the transition from informal markets to packaged and branded goods, while inflation and currency volatility weigh heavily on household purchasing power.
Within this context, South Africa stands out. Stears’ compilation of Euromonitor and Food Export data confirms its $18.5 billion in retail packaged food sales, a figure far ahead of its peers.
Nigeria’s $4.7 billion market reflects the constraints of infrastructure gaps and consumer price sensitivity, despite its overall high levels of spending.
Morocco is leveraging its proximity to Europe, while Egypt’s large urban base supports its $11.2 billion market.
Kenya, with $5.1 billion in sales, leads East Africa thanks to the spread of supermarkets and the rise of a growing middle class.
Smaller markets such as Ghana and Ethiopia remain in early stages but carry long-term promise if investment in logistics and retail infrastructure accelerates.
Overall, Africa’s packaged food landscape remains both concentrated and volatile. A handful of mature markets account for the bulk of sales while several populous countries lag behind.
For investors and multinationals, the opportunity is clear, but success will depend on navigating fragmented markets, persistent inflationary pressures, and enduring infrastructure challenges. Even so, the long-term opportunities for strategic investors remain.
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Image Credit: Business Insider Africa
