South African Agriculture Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 16.12 Billion |
| Market Size (2029) | USD 23.24 Billion |
| CAGR (2024 - 2029) | 7.60 % |
South African Agriculture Market Analysis
The Agriculture In South Africa Market size is estimated at USD 16.12 billion in 2024, and is expected to reach USD 23.24 billion by 2029, growing at a CAGR of 7.60% during the forecast period (2024-2029).
- South Africa is one of the major African countries that is engaged in producing agricultural products. Farming is one of the main sources of income, and the growing focus on food security and an increase in farmer’s income are the major aspects responsible for the growth and development of the agriculture market in South Africa.
- Further, the agriculture sector in South Africa is extremely diverse due to the country’s climate, which ranges from dry and arid in the Karoo to sub-tropical on the east coast and Mediterranean in the west. Western and Eastern Cape witness rain in the winters, while the interiors witness summer months. Various farming products from this climate include all major grains, deciduous and subtropical fruits, oilseeds, sugar, nuts, citrus, flowers, wine, and most vegetables.
- Compared to the rest of Africa, South Africa has the most productive, modern, and diverse agricultural economy. Further production of major crops in the country is increasing year on year. For instance, as per FAOSTAT, fruit production in the country was 8.0 million metric tons in 2021, which increased to 8.8 million metric tons in 2022.
- The integration of digital technology into agriculture presents a major opportunity for the country. The use of mobile phones as a popular communication tool, coupled with internet-based solutions, may significantly boost access to financing for agricultural inputs across the value chain. Digitalization and the effective use of fertilizer and seeds are expected to become increasingly crucial in unlocking agriculture prospects in South Africa.
South African Agriculture Market Trends
High Demand for Food Crops
In South Africa, rapid population growth and increasing economic prosperity continue to create rapid demand for the agricultural sector. It is estimated that the population of South Africa will reach 82 million by 2035. With the increasing population, the demand for food is projected to double in the coming years. The country's demand for fruits and vegetables is further driven by increasing income, rapid urbanization, and a shift in consumer’s diet preferences toward nutritional food. To meet this demand, agricultural production is increased. For instance, as per FAOSTAT, the total fruit production in South Africa was 7,968,617 metric tons in 2021, which increased to 8,772,739 metric tons in 2022.
People in the country are discovering the link between healthy food and their well-being. For vegetables, like potatoes, there is a recent trend of growing consumption, especially among the middle-income group of South Africa, which is mainly addressed in the agriculture sector. Crops such as potatoes, tomatoes, onions, sweet corn, beetroots, apples, citrus, grapes, bananas, litchis, peaches, pineapples, and avocados are some of the major fruits and vegetable crops are expected to drive the agriculture sector in the country during the forecast period.
The increasing need for food security within a booming population and greater demand from a rising middle-class population for food is driving the growth of the country's agriculture sector. Improved awareness across various social media platforms related to health and well-being has boosted the demand for various food products, particularly fresh fruits and vegetables.
Further, with the rising health consciousness, there is also an increasing consumption trend toward varieties of off-season fruits, which are usually met by rising imports. The rise in the imports of fruits and vegetables reflected an increase in demand for fruits and vegetables. Therefore, the increasing demand for food crops due to the rising population in the country, especially for fruits and vegetables, is anticipated to drive the market during the forecast period.
Cereals Hold a Significant Share by Crop Type
In the South African market, the cereals segment accounted for a significant share of the market studied in terms of value. As per several studies, cereals such as rice, maize, and wheat are among the major crops in the region, and the production of these crops accounts for a significant share of its total food production.
With the increasing number of inhabitants and rising income, the demand for these crops is increasing yearly. Consumers are demanding premium-quality cereals. Further, the cereal's quality and production are highly dependent on germination and the emergence of sown seeds.
The need for sustainable food in the country has raised the demand for quality seeds on the farms, increasing the production of cereals. For instance, as per data published by FAOSTAT, rye production in South Africa was 1,956.8 metric tons in 2021, which increased to 1,960.7 metric tons in 2022.
Moreover, a surge in the export of high-quality cereals is further anticipated to contribute to the segment's growth. For instance, as per ITC Trade Map, in 2021, South Africa exported cereals valued at USD 1,001,538 thousand, which increased and reached USD 1,524,392 thousand in 2022.
In addition, initiatives to control weeds in cereal production are being taken in the country and are anticipated to support the revenue from the segment. For instance, in 2022, Corteva Agrisciences launched its latest crop protection solution, Aubaine 518 SC herbicide, to South African wheat farmers to control wheat crop weeds.
South African Agriculture Market News
- August 2023: The Minister of Agriculture, Land Reform, and Rural Development of South Africa signed an agreement with Chinese Minister of Foreign Affairs Mr. Wang Yi(on behalf of Chinese Agriculture Minister Tang Ranijan) for the export of avocado to the People’s Republic of China.
- June 2022: South African government signed the Protocol of Phytosanitary Requirements for the export of soybeans from South Africa to China.
South Africa Agriculture Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 High Demand for Food Crops with the Rising Population
4.2.2 Adoption of Advanced Technologies in Agriculture
4.2.3 Increasing Government Initiatives
4.3 Market Restraints
4.3.1 Low Productivity of Agricultural Lands
4.3.2 Inadequate Financing in the Agriculture Sector
5. MARKET SEGMENTATION
5.1 By Crop Type
5.1.1 Cereals
5.1.2 Fruits
5.1.3 Vegetables
5.1.4 Oilseeds
6. REGIONAL ANALYSIS
6.1 PESTLE Analysis
6.2 Supply/Value Chain Analysis
6.3 Government Policies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South African Agriculture Industry Segmentation
Agriculture in South Africa involves the production of various food crops, such as fruits and vegetables. The report defines agricultural products by end users. The market for agriculture in South Africa is segmented by crop type (cereals, fruits, vegetables, and oilseeds). The report offers market size and forecasts in value (USD) for all the above segments.
| By Crop Type | |
| Cereals | |
| Fruits | |
| Vegetables | |
| Oilseeds |
South Africa Agriculture Market Research FAQs
How big is the Agriculture In South Africa Market?
The Agriculture In South Africa Market size is expected to reach USD 16.12 billion in 2024 and grow at a CAGR of 7.60% to reach USD 23.24 billion by 2029.
What is the current Agriculture In South Africa Market size?
In 2024, the Agriculture In South Africa Market size is expected to reach USD 16.12 billion.
What years does this Agriculture In South Africa Market cover, and what was the market size in 2023?
In 2023, the Agriculture In South Africa Market size was estimated at USD 14.89 billion. The report covers the Agriculture In South Africa Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Agriculture In South Africa Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the growth opportunities for the South Africa Agriculture Market?
The growth opportunities for the South Africa Agriculture Market are a) Meeting the rising consumer demand for organic produce can create opportunities for organic farming practices and certifications b) Expanding domestic food production and reducing reliance on imports
What are the growth opportunities for the South Africa Agriculture Market?
The growth opportunities for the South Africa Agriculture Market are a) Meeting the rising consumer demand for organic produce can create opportunities for organic farming practices and certifications b) Expanding domestic food production and reducing reliance on imports
South Africa Agriculture Industry Report
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