South Africa Nutritional Food Market: By Product (Breakfast Cereals, Cereal Bars, Energy Bars, and Savory Snacks), By Distribution Channel (Dollar Stores Variety Stores & General Merchandise Retailers, Cash & Carries & Warehouse Clubs, Convenience Stores, eRetailers, Food & drinks specialists, Hypermarkets & Supermarkets, and Others) and Country

South Africa Nutritional Food Market was valued at ZAR 33,368.0 million in 2023 and is expected to grow at a CAGR of 7.7% from 2024 to 2030. This market encompasses breakfast cereals, cereal bars, energy bars, and savory snacks, distributed through various channels including hypermarkets, supermarkets, and eRetailers. The South African Nutritional Food Market has been experiencing steady growth, driven by increasing health consciousness and a rising middle class. Urbanization and exposure to Western dietary trends have influenced consumer preferences toward convenient and packaged foods. This has contributed to the proliferation of ready-to-eat meals and snacks in South Africa’s urban centers.

The growing emphasis on preventive healthcare and the need for addressing micronutrient deficiencies in vulnerable populations are further propelling market expansion. Additionally, the rising prevalence of lifestyle-related diseases and the subsequent focus on dietary interventions are boosting the importance of nutritional foods. These shifts are influenced by significant urbanization and developmental impacts, which are also reflected in health trends. Savory Snacks dominate the market, accounting for approximately 77.8% of the market share in 2023. Cereal bars and energy bars are gaining popularity, especially among young urban professionals and fitness enthusiasts, due to their convenience and perceived health benefits. The COVID-19 pandemic has accelerated the shift towards healthier eating habits, boosting sales of nutritional foods across all segments. Hypermarkets & Supermarkets remain the primary distribution channel, but eRetailers are experiencing the fastest growth with a CAGR of 7.0% due to increasing internet penetration and changing consumer shopping habits. Challenges facing the market include economic disparities affecting affordability, particularly for premium nutritional products, and competition from traditional, less expensive food options. However, innovations in product formulations, such as fortified savory snacks and low-sugar cereals, are helping to expand the market reach.

South Africa Nutritional Food Market Key Developments:

In 2022, Nestlé Health Science agreed to purchase a majority stake in Orgain, a leader in plant-based nutrition, from founder Dr. Andrew Abraham and Butterfly Equity, who will continue to be minority share owners. This acquisition:

• Complements Nestlé Health Science's existing portfolio of nutrition products
• Supports the company's goal of promoting healthier lives
• Strengthens its position in the plant-based nutrition market

In April 2019, Unilever announced that it has signed an agreement to acquire OLLY Nutrition, a premium U.S.-based wellbeing business in the vitamins, minerals, and supplements (VMS) category. This move:

• Expands Unilever's presence in the nutritional food and supplement market
• Allows the company to tap into the growing consumer demand for health and wellness products
• Enhances Unilever's portfolio with a brand known for its innovative approach to supplements