South Africa’s fast-moving consumer goods (FMCG) market generated approximately R683.3 billion in sales across modern and traditional retail channels in 2025, with sales value increasing 5.7% and unit volumes rising 6.7%, according to NielsenIQ (NIQ). [1]
The figures indicate that growth was not driven by price increases alone. Unit growth exceeded value growth across the overall market, while categories including snacks and non-alcoholic beverages recorded particularly strong volume gains. [1]
Another important shift took place in where South Africans shop. Modern trade still accounts for most FMCG spending, but traditional outlets such as spaza shops, independent superettes and taverns grew faster during the year. [1][2]
South Africa FMCG Market Reaches R683.3 Billion
| 2025 FMCG Indicator | Result |
|---|---|
| Total FMCG sales | R683.3 billion |
| Sales value growth | 5.7% |
| Unit sales growth | 6.7% |
| Modern trade sales | R513.2 billion |
| Traditional trade sales | R170.1 billion |
NIQ’s State of the Retail Nation analysis covers calendar year 2025 and measures FMCG activity through both modern and traditional retail channels. [1]
Zak Haeri, Managing Director for NIQ in South Africa, attributed the market’s resilience partly to economic tailwinds including a stronger rand, moderating inflation and improvements in real wages, while warning that weak economic growth, unemployment and international volatility remain important risks. [1]
Which FMCG Categories Grew Fastest?
Food remained the largest category, generating approximately R246.4 billion in sales. Food sales value increased 6.3%, while volumes rose 5.9%. [1]
The strongest growth rates, however, came from snacking and non-alcoholic beverages.
| Sector | 2025 Sales | Value Growth | Volume Growth |
|---|---|---|---|
| Food | R246.4bn | 6.3% | 5.9% |
| Non-alcoholic beverages | Nearly R96bn | 7.5% | 7.1% |
| Snacking | R50.2bn | 7.9% | 13.5% |
| Personal care & health | R78.4bn | 5.1% | 3.3% |
| Liquor | R137.8bn | 4.2% | 4.6% |
| Home & pet | R34.9bn | 3.8% | 1.6% |
| Baby food & care | R14.2bn | 0.9% | 3.2% |
| Tobacco | R25.1bn | 5.6% | 6.7% |
Snacking stands out because its 13.5% increase in unit sales was substantially higher than its 7.9% increase in sales value. This suggests that growth reflected considerably more product being purchased rather than simply higher prices. [1]
Traditional Retail Is Growing Faster Than Modern Trade
Modern trade remains dominant in absolute terms. Supermarket chains, franchised grocery stores, ecommerce platforms and other modern channels accounted for approximately R513.2 billion of FMCG sales in 2025. [1]
Traditional trade — including spaza shops, independent superettes and taverns — generated approximately R170.1 billion. But NIQ found that traditional trade was growing faster than modern trade. [1]
Scale helps explain why this channel matters. NIQ’s measurement universe includes more than 140,000 traditional outlets, compared with approximately 11,000 modern retail outlets. [1]
The much larger physical footprint gives neighbourhood retailers significant accessibility, particularly in townships, rural areas and communities where travelling to a large supermarket is less convenient.
Why Consumers Are Shopping More Often and Buying Smaller Packs
NIQ identifies changing shopping behaviour as another factor supporting traditional trade.
South African households are increasingly making more frequent shopping trips while buying smaller quantities on each visit. [1]
This behaviour can favour nearby independent stores because consumers do not necessarily need to travel to a supermarket or shopping centre for every purchase.
Traditional retailers have also become more price competitive as many use wholesalers and distributor networks to buy products in larger quantities. [1]
For FMCG manufacturers, the result is that distribution strategy cannot focus exclusively on large supermarket chains.
Why Traditional Trade Creates a Different Challenge for Brands
Growth in traditional trade creates opportunities for consumer brands, but the channel operates differently from large-format retail.
Shelf space in a small independent outlet is considerably more constrained than in a supermarket. A retailer may stock only one or two leading products in a category rather than a wide range of competing SKUs.
That makes distribution, brand recognition, price points and pack sizes especially important.
NIQ describes this as a more concentrated competitive environment in which leading products can capture a disproportionate share of shelf space and sales. [1]
Private Label Share Declined in 2025
The changing retail-channel mix also affected private-label products.
Excluding tobacco and liquor, private labels represented approximately 17.7% of FMCG sales value in 2025, down from 18.3% in 2024. [1]
Private-label sales still increased 4.1% to nearly R106 billion, but that growth was substantially slower than the 8.1% recorded a year earlier. [1]
One explanation is the faster growth of traditional trade, where retailer-owned private-label products generally have less presence than they do in major supermarket chains.
At the same time, branded manufacturers and independent players have been using promotions, product innovation and wider distribution to compete more aggressively.
What the Data Means for FMCG Companies
The NIQ figures suggest several strategic implications for brands operating in South Africa.
Distribution is becoming more important
A brand with strong supermarket placement but weak traditional-trade distribution may miss a channel that is growing faster than modern retail.
Pack architecture matters
More frequent purchases and smaller basket sizes increase the importance of affordable pack sizes that match consumers’ available cash and immediate needs.
Volume growth should be separated from price growth
The strongest categories are not simply generating more rand revenue. Snacking, for example, recorded substantial unit growth, providing a stronger demand signal than nominal sales growth alone. [1]
Brands need channel-specific strategies
The product range, merchandising and promotion strategy that works in a supermarket may not work in a spaza shop with limited shelf space.
South Africa FMCG Outlook for 2026
The strong 2025 results do not remove the risks facing South African consumers and retailers in 2026.
NIQ has highlighted international trade tensions, geopolitical uncertainty, energy costs and volatile commodity prices — including cocoa and coffee — as potential pressures on consumer inflation and FMCG margins. [1]
Supply-chain resilience will therefore remain important for manufacturers and retailers.
Pricing and promotions will also need to balance actual affordability with consumers’ perception of value, particularly in a market where households remain price sensitive.
The most important lesson from the 2025 data may be that South African FMCG growth is not occurring uniformly. Categories, channels and consumer behaviours are changing at different speeds.
Companies able to identify those differences — particularly the growth of traditional trade and smaller, more frequent shopping missions — may be better positioned than competitors relying primarily on national headline sales figures.
About the NIQ Retail Measurement Data
The figures are based on NIQ’s Retail Measurement Service (RMS), which tracks South African grocery retail activity across modern and traditional channels. [1][3]
According to NIQ, the measurement base covers more than 11,000 branded retail outlets and more than 140,000 independent stores across South Africa’s nine provinces and measures more than 80% of retail grocery transactions. [1]
The scale of that dataset makes the channel comparison particularly useful, although the results should still be understood as NIQ’s market measurement rather than official national retail statistics.
Frequently Asked Questions
How large is South Africa’s FMCG market?
NIQ estimates that South African consumers spent approximately R683.3 billion on FMCG products through modern and traditional retail channels in 2025. [1]
How fast did South Africa’s FMCG market grow in 2025?
Sales value increased 5.7% year on year, while unit sales increased 6.7%. [1]
Which FMCG category grew fastest?
Among the categories highlighted by NIQ, snacking recorded the strongest value growth at 7.9% and particularly strong unit growth of 13.5%. [1]
Are spaza shops growing faster than supermarkets?
NIQ reports that traditional trade channels, including spaza shops, independent superettes and taverns, grew faster than modern trade during 2025, although modern trade remains much larger in total sales value. [1]
How much FMCG spending goes through traditional trade?
Traditional trade generated approximately R170.1 billion in FMCG sales during 2025, compared with R513.2 billion through modern trade. [1]
What happened to private-label sales?
Private-label share, excluding liquor and tobacco, declined from approximately 18.3% in 2024 to 17.7% in 2025. Private-label sales value nevertheless grew 4.1% to almost R106 billion. [1]
Sources and Information
[1] NielsenIQ (NIQ) South Africa. State of the Retail Nation analysis for calendar year 2025, published 2026. Data includes FMCG sales value and volume, category performance, modern and traditional trade, private label and the 2026 outlook.
[2] African Marketing Confederation. “FMCG retail in South Africa lifted by economic tailwinds in 2025,” 2026.
Independent coverage of the NIQ findings
[3] NielsenIQ. Retail Measurement Services (RMS).
NIQ Retail Measurement Services
Image credit: AI-generated.