Examples include nondurable household goods such as packaged foods, beverages, toiletries, overthecounter drugs and other consumables fmcg is the most common acronym for such products across most of europe, asia and oceania, while cpg consumer packaged goods is used more. The impact of the 4th industrial revolution on the south. African consumer and retail sector report 2016 kpmg south. South africas automotive industry is a global, turbocharged engine for the manufacture and export of vehicles and components.
In the industry analysis which follows, we have dealt first with the retail sector and then. The sunday times top 100 companies, futured by bcx, is one of the most prestigious and highlyanticipated events on the south african business calendar, where industry leaders come together to celebrate the jselisted companies that have delivered the highest returns for their shareholders based on an initial investment of r10,000. Create a profile and upload your cv to get more exposure. More specifically, the 2018 forecast provides results. South africa has the sixth highest number of shopping centres in the world. In 2006, the national study of the south african supply chain industry, supplychainforesight, included an industryspecific report on south africas fmcg and retail industries, as part of a set of industrybased analyses. Marketers are familiar with the global definition of millennials but few understand these consumers in the south african context. July 2017 i industry research fmcg industry overview. The study also adds to the scarce literature on supply chain resilience in the fmcg industry, both globally and in a south african context. The world market for fast moving consumer goods fmcg. Over 2 000 centres offer 23 million m2 of shopping space.
Maturity assessment of green supply chain management in. Mar 17, 2020 press release global fmcg market size, share 2020 industry trends, growth, segmentation, future demands, sales revenue by regional forecast to 2026. Prospects in the retail and consumer goods sector in ten. Fmcgs are generally cheap products that have a short shelf life, and are purchased by consumers on a regular basis. South africa on an annual basis over the last two decades. The fmcg sector in africa has significant scope to. Careers24 has a wide range of south africa fmcg, manufacturing jobs. By 2010, the industry had created 23 of the worlds top 100 brands and had grown total return to shareholders trs almost 15 percent a year for 45 yearsperformance second only to the materials industry. The covid19 outbreak has forced a permanent recalibration of consumer habits and consumption patterns. Closer home, in south africa, online shopping has evolved significantly in the past two years, with consumers increasing trust and confidence within the online buying ecosystem.
The government of india has increased its spend on infrastructure, including the construction of roads. South african online fmcg sector shows massive growth. What is clear from the image above is the fact that the wage rate inflation growth in south africa s manufacturing industry has been declining significantly over the last couple of years, and at its current year on year rate of 5. South africa suffers from a high rate of unemployment, with an official unemployment rate estimate of 24. This is the theme for african statistics day 2017, taking place on 18 november. South africas manufacturing industry south african market. Mncs in india have also started supporting their global supply chain requirements by serving as cost effective sourcing bases.
With a large percentage of the world now in lockdown, it is important to look beyond the daytoday maelstrom and adjust for a new normal. Supermarkets have spread fast in southern and eastern africa. Enterprise development and transformation in the fmcg and. Iri pundit, marylee townshend, believes now more than ever, fmcg brands that clearly communicate their identity and what they stand for will win going forward. Fmcg industry and three main areas are explored namely whether marketing strategies are. Market research company, iri south africa, predicts seven trends that will influence the future of fmcg in this country. Human capital trends report for south africa 2016 the new. There is huge potential for brand owners to invest in the fmcg sector in africa, however, population growth is just one factor in gauging the. Often, existing market information is minimal, outofdate or nonexistent, forcing organisations to base decisions on gut instinct. The interest from the fmcg and retail industry last year has led to a refinement of the research for the sector this year. An exploratory study in the south african fast moving. In terms of key players in the fmcg sector, the south african food and grocery retail space is. The fmcg products with huge growth potential in africa.
Despite africa having a population of around one billion, the continent remains relatively underserved by fmcg companies. As of august 16, 2018, it has been signed by 44 of the 55 african union member states. South africas manufacturing industry south african. However, growth and expansion outside south africa is a recent occurrence, facilitated by political and economic liberalisation, increased urbanisation and, more importantly, a rising middle class. This weeks fmcg coverage in africa will look at the soaps and detergents market in africa. Find fmcg, manufacturing jobs in south africa that suit your needs. African powers of consumer products 2016 the continents home. To capitalise on this growing demographic, it is incumbent on fmcg companies to understand the intricacies of each market.
Find fmcg jobs in south africa that suit your needs. South africa is the southernmost country in africa. This research is to support the latest book by greg thain with coauthor john bradley, fmcg. This makes for a promising outlook for fastmoving consumer goods fmcg companies given the large market to cater for. Fmcg logistics market growth, trends, and forecast 2019. Also, with indian retail market being estimated to reach usd 1. Introduction international comparison studies provide a useful opportunity to benchmark logistics practices, identifying areas of similarity and differences both within and between industrial sectors.
An exploratory study in the south african fast moving consumer goods industry fmcg on the role of brand management and its impact on financial measures a research report presented to the graduate school of business leadership university of south africa in partial fulfilment of the requirements for the masters degree in business leadership. Jan 30, 2014 the automotive industry is one of south africas most important sectors, with many of the major multinationals using south africa to source components and assemble vehicles for both the local and international markets. This study explores south african fast moving consumer goods fmcg smme manufacturers need for innovation to achieve growth in kwazulunatal kzn. Capturing africas high return brookings institution. A very small number of fmcg brands are making the conscious effort to extend engagement with the consumer beyond product consumption here are some provocative insights from a south african perspective by larry khumalo, ornico group marketing manager.
In order to spot opportunities and stay ahead of competitors, consumer goods businesses need. These are just some of the challenges facing the fmcg industry. The top 100 companies in south africa in 2019 capitec bank holdings ltd has, for the second year running, been announced as the sunday times top 100 company of the year, based on its share performance on the johannesburg stock exchange jse over the past five years. Fast moving consumer goods fmcg also known as consumer packaged goods are products that can be bought at a low cost. At present, most african consumers especially south of the sahara desert remain extremely poor and spend most of their money on food and other necessities. African consumer and retail sector report 2016 african consumer and retail sector report 2016 this report analyses the key drivers of the retail market in africa, including key demographic and macroeconomic factors, as well as spending patterns.
Different by design foreword it is an honour to introduce the deloitte 2016 human capital trends report for south africa. There is huge potential for brand owners to invest in the fmcg sector in africa, however, population growth is just one factor in gauging the potential market readiness in various regions. The fmcgprepared food sector in africa dubai exports. Pdf exploring fast moving consumer goods fmcg small.
Egypt, and tanzania rises above south africa, which. In celebration of this prestigious day, stats sa explores the archives to find four facts on the south african economy that you might have missed. This study explores the role of branding in the south african. Four of the largest trends influencing the marketing industry, and their predicted impact on south africa in the coming months. Careers24 has a wide range of south africa fmcg jobs. Maturity assessment of green supply chain management in the. The main clusters identified by top fmcg firms are west africa nigeria, ghana and ivory coast, southern. If you are an investor and do not understand this, then you are missing the boat on africa s emerging fastmoving consumer goods fmcg market.
An innovation, as defined by the oslo manual, is the implementation. An introduction to the fastmoving consumer goods industry, giving you its background and key facts and figures. Fastmoving consumer goods fmcg are products that are sold quickly and at a relatively low cost. Gfk gives you a lens into the south african s millennial. Insight survey is a south african b2b market research company with more than 10 years experience, focusing on businesstobusiness b2b and industry market research to ensure smarter, moreprofitable business decisions are made with reduced investment risk. Report overview 5 the south african concentrates report 80 pages provides a dynamic synthesis of industry research, examining the local and global concentrates industry from a uniquely holistic perspective, with detailed insights into the entire value chain from manufacturing to. African consumer and retail sector report 2016 kpmg. South african supply chains now taking our lead from the deloitte study, which did.
Its methodology is based on the global powers of consumer products 2015 report. The south african retail industry is the largest in the subsaharan region and is the 20th largest retail market in the world. African powers of consumer products 2016 the continents. A complete background analysis of the global fmcg logistics market, which includes an assessment of the sector and contribution of sector in the economy, market overview, market size estimation for key segments, key countries and emerging trends in the market segments, market dynamics, and key goods flow statistics are covered in the report. Africa has an emerging and expanding middleclass of consumers that is demanding premium everyday products and has the proven spending power to pursue them. In terms of key players in the fmcg sector, the south african food and grocery retail space is dominated by the. Fmcg logistics market growth, trends, and forecast 20192024. This paper focuses on trends in the fast moving consumer goods fmcg industry. South africa at nearly 70% with a supermarket presence for over 60 years.
This is the second time that i have had this privilege and association with deloitte, and its work on human capital management. Human capital trends report for south africa 2016 the new organisation. This has led to online purchase of a broader range of categories, with a particularly interesting upswing seen in online restaurant deliveries and meal kit services. Global fmcg market size, share 2020 industry trends, growth. Supply chain design approaches for supply chain resilience. For the fmcg sector 26% of companies are large at over a billion in turnover, with a further 32% earning over. It is estimated that over 20 000 new fmcg enterprises would have entered this massive and fierce sector of the economy by 2020 price. This practice has been maintained in 2018 and in line with the previous time series. An exploratory study in the south african fast moving consumer. If you know a woman who is experienced in traveling africa, ask her what things she always travels with. As the largest manufacturing sector in south africa s economy, vehicle and component production accounted for 33% of south africa s manufacturing output in 2016, while the contribution of the broader automotive industry to. Maturity assessment of green supply chain management in the south african fmcg industry 2 the university of pretoria industrial engineering department october 2012 1. It is already the biggest retail market in subsaharan africa, and the 20th largest in the world, with a wide array of shopping malls and retail developments, as well as a.
Also labelled the consumer packaged goods cpg sector, it is mainly characterised by companies that supply lowcost products that are in constant high demand. This high rate of unemployment in south africa is partly. A qualitative study of south african fastmoving consumer goods grocery manufacturers. Introduction in south africa, the fast moving consumer goods fmcg industry is an important and fast growing industry, which accounts for over 1,080,000 enterprises kpmg, 2015. The power of fast moving consumer goods now available on and other major retailers. If you are an investor and do not understand this, then you are missing the boat on africas emerging fastmoving consumer goods fmcg market. The top 100 companies in south africa in 2019 arena events. For many decades, the fmcg industry has enjoyed undeniable success. Other countries with fairly large fmcg markets in an african context include kenya, drc, ghana, ivory coast and tanzania. The dominance of large economies such as south africa puts pressure on some neighboring countries to suffer from backwash effects of any regional growth dynamics.
In 2006, the national study of the south african supply chain industry, supplychainforesight, included an industry specific report on south africa s fmcg and retail industries, as part of a set of industry based analyses. African powers of consumer products 2016 3 welcome to the inaugural edition of our african powers of consumer products report, which identifies the top 50 listed african consumer product cp companies by revenue. The impact of the 4th industrial revolution on the south african financial services market. Reportbuyer is a leading industry intelligence solution that. Fast moving consumer goods fmcg market research at gfk. We hope to reveal some insights into a crucial industry for africa and that this report. Exploring fast moving consumer goods fmcg small, medium and. Nov 26, 2014 an introduction to the fastmoving consumer goods industry, giving you its background and key facts and figures. For fmcg businesses, optimising distribution is key, and that can be challenging in an african context where formal and informal markets frequently butt against each other. Its economy is the secondlargest in africa, and the 34thlargest in the world.
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