South Africa

Country

South Africa

Continent

Southern Africa  

Market Performance

A market survey by the African Organic Farming Foundation undertaken in 2005 estimated the SA organic market to be worth R100m across all categories of produce, and predicted that this would grow by 30% by 2010. There have been a series of conflicting reports and marketing data on SA organic foods since. These have not cleared the uncertainty of an industry said to be worth over US $50bn globally and which is expected to grow to $104,5bn in 2015.

Consumer Preferences & Channels

Little data exists post - 2006 . The perception at that time was that organic produce was priced at a level that only the middle to upper income consumers can afford the luxury thereof. In contradiction to this, it was the experience of at least one retail store where higher-priced, non- organic produce, side by side with the certified equivalent, sold faster than the certified produce. This supported the contention that the consumption of certified produce may be a function of consumer education and awareness, and that these consumers, seeking quality produce, shop at more “supermarket” outlets, thereby generating the demand for certified produce. The majority of these consumers may of been of the “younger” generation, but not exclusively so.  Furthering the education / awareness experience, consumers with medical conditions, such as cancer, actively seek organic produce, irrespective ofcertification status. These consumers usually purchase produce directly from producers at farmers’ market, where trust and consistent supply are more significant than the need for certification.  It is also apparent that parents of young children are becoming increasingly aware of the health risks associated with non-organic and processed / refined foods, and consequently seek organically grown food, irrespective of the certification status thereof.

Legislative Considerations

Awaiting Data

Sources & Links to Further Info

http://www.grolink.se/epopa/Publications/Market-studies/SA%20OMS.pdf

http://www.financialmail.co.za/life/2012/10/25/battle-for-the-soul-of-organic-food-industry