According to the latest NIQ South Africa analysis, the sector experienced an impressive post Covid-19 resurgence, reaching new heights in total FMCG sales (including liquor & tobacco) in 2023.

This data stems from NIQ South Africa’s measurement of 17,000 stores on an ongoing basis which provides the wide coverage of the FMCG industry in South Africa with some of the most granular data collected in the market.

Independent retailers

Independent retailers, which include non-branded superettes and spaza shops, have successfully commanded a substantial share of the market and now account for R27.4 of every R100 in FMCG sales,” says NIQ South Africa market leader Gareth Paterson.

“This reflects the changing preferences of consumers and the lasting impact of COVID-19 hard lockdowns on spending patterns,” he adds.

Investment by manufacturers

He also points to a growing parity between modern trade and traditional trade outlets which can be attributed to manufacturers investing in route-to-market strategies, leading to the removal of nodes in the supply chain.

This optimisation has resulted in significant cost reductions, benefiting independent retailers and their consumers.

“This trend has also created a situation where more than half of the Top 200 food and beverage items were cheaper in traditional trade during Q4, 2022,” he says.

Courtesy of Bizcommunity – read full article here.