South Africa Grain Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 8.37 Billion |
| Market Size (2029) | USD 11.74 Billion |
| CAGR (2024 - 2029) | 7.00 % |
South Africa Grain Market Analysis
The South Africa Grain Market size is estimated at USD 8.37 billion in 2024, and is expected to reach USD 11.74 billion by 2029, at a CAGR of 7% during the forecast period (2024-2029).
South Africa is a leading grain producer in Africa, significantly impacting both regional and global markets. Major grain-producing regions include the Western Cape, Free State, and Limpopo. The country's grain production heavily depends on climatic conditions, particularly rainfall. Droughts in key areas like the Free State can lead to lower yields and price volatility. The main grain crops produced are wheat, maize, sorghum, rice, and barley. Seasonal variations in production ensure year-round grain availability. Maize primarily grows in the summer from November to April, while wheat is typically cultivated in the winter from May to October. Despite this, weather patterns such as droughts or floods can significantly affect yields.
The expansion of the area under cereal crops is a major factor driving market growth. According to FAOSTAT, the harvested area for cereal grains in South Africa grew from 3.6 million hectares in 2020 to 3.7 million hectares in 2022. Additionally, the South African government has implemented policies to support local grain producers through subsidies, strategies, and price controls. This governmental support enhances grain production and market growth. For instance, in 2024, Grain SA reaffirmed its commitment to partnering with the newly appointed Ministers of Agriculture, Land Reform, and Rural Development. This partnership focuses on sustainability for grain producers and the environment, while also contributing to a more inclusive national and rural economy. Therefore, the prominence of grain production, coupled with the increasing land under cultivation and government initiatives, is expected to drive market growth during the forecast period.
South Africa Grain Market Trends
Production of Maize Dominates other Crop Types
Maize stands as South Africa's most significant and extensively cultivated crop, crucial for both agricultural production and consumption. The Free State, Mpumalanga, and Northwest provinces are the primary maize-producing regions, benefiting from favourable climate and soil conditions for large-scale farming. The Free State, known as the "maize heartland," contributes the largest share of the national maize harvest. Maize is vital to South Africa's food security, economy, and agricultural landscape. According to the USDA, South Africa accounted for 70% of Southern African maize production in 2023.
In addition to human consumption, maize is essential for the livestock farming sector as a primary source of animal feed. The high demand for maize supports its production, making it one of the country's major grain crops. For example, FAOSTAT reported that South Africa's maize production reached 16,137 thousand metric tons in 2022, compared to wheat at 2,088 thousand metric tons, barley at 308 thousand metric tons, sorghum at 103 thousand metric tons, and rice at 3 thousand metric tons.
The adoption of climate-resilient maize varieties is expected to further support the market. CIMMYT (International Maize and Wheat Improvement Center) has released three new tropical maize hybrids from the Africa Breeding Program. The CIM22SAPP1-15, CIM22SAPP1-12, and CIM22SAPP2-10 varieties are now available for public and private sector partners across southern Africa, including South Africa. These favorable production parameters, combined with the availability of climate-resistant varieties, are projected to drive maize production and market growth.
Wheat Imports Surge to Meet Rising Consumption Demands
South Africa's wheat grain imports are notably high due to substantial consumption demand, outpacing other grain crops. Wheat, a staple in the country, is extensively used in bread, pasta, and various food products. Despite being a significant agricultural producer, South Africa remains a net importer of wheat, depending on foreign sources to fulfil domestic demand. This dependency arises because local wheat production does not suffice for consumption needs. Additionally, production declines have further supported wheat imports. FAOSTAT data shows that South Africa's wheat production decreased from 2.2 million metric tons in 2021 to 2.0 million metric tons in 2022.
Severe droughts, especially in the Western Cape province in South Africa's primary wheat-producing region have kept production levels low. Meanwhile, heightened consumption has led to a surge in wheat imports. Data from the ITC trade map reveals that South Africa's wheat imports increased from 1.8 million metric tons in 2022 to 2.0 million metric tons in 2023. In 2023, key exporters of wheat to South Africa were Poland, Lithuania, Russia, Australia, Brazil, Latvia, and Argentina.
As a member of the African Continental Free Trade Area (AfCFTA) and the Southern African Development Community (SADC), South Africa aims to strengthen regional trade partnerships, potentially ensuring more stable and cost-effective wheat imports. Government approvals also support this growth. For example, in 2022, the South African government approved the import of GM wheat variety HB4 for food, feed, and industrial processing. Consequently, decreasing production, increasing sectoral demand, and government support are driving wheat imports, thereby boosting market growth during the forecast period.
South Africa Grains Market News
- August 2024: MullenLowe South Africa unveiled a social media initiative named "7 Days 7 Ways" for Spekko. This campaign teamed up with 12 dynamic food and chef influencers, aiming to reshape consumer perceptions of rice and boost its consumption.
- June 2024: Capwell Industries introduced the first-ever fortified rice in Kenya, with potential implications for the entire African continent, including South Africa. This innovative product, enriched with essential vitamins B6, B1, B9 (folic acid), iron, and zinc, marks a significant advancement in the region’s food industry.
- May 2024: In2food, a prominent food producer in South Africa, has unveiled Smul, a new line of nutritious and convenient products. These offerings centered around whole grains, seeds, and nuts, are crafted to seamlessly integrate into even the busiest lifestyles.
South Africa Grain Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions 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 Rising Land Under Grain Cultivation
4.2.2 Supportive Government Policies and Subsidies
4.2.3 Favourable Climatic Conditions
4.3 Market Restraints
4.3.1 Fluctuations in the Grain prices
4.3.2 Limited Access to Finance and Credit
5. MARKET SEGMENTATION (Production Analysis by Volume, Consumption Analysis by Value and Volume, Import Analysis by Value and Volume, Export Analysis by Value and Volume, and Price Trend Analysis)
5.1 Maize
5.2 Barley
5.3 Sorghum
5.4 Rice
5.5 Wheat
6. REGIONAL ANALYSIS
6.1 PESTLE Analysis
6.2 Value Chain Analysis
6.3 Government Regulations and Policies
7. COMPETITIVE ANALYSIS
7.1 Distribution Network and Retail Analysis
7.2 List/Profile of Key Players
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
South Africa Grain Industry Segmentation
Grains are the seeds from specific plants in the grass family (Poaceae), cultivated for food, feed, and various other applications. The South African grain market is segmented by crop type (maize, barley, sorghum, rice, and wheat). The report includes production analysis (volume), consumption analysis (volume and value), import analysis (volume and value), export analysis (volume and value), and price trend analysis. The report offers market size and forecasts in terms of value (USD) and volume (metric tons) for all the above segments.
South Africa Grain Market Research Faqs
How big is the South Africa Grain Market?
The South Africa Grain Market size is expected to reach USD 8.37 billion in 2024 and grow at a CAGR of 7% to reach USD 11.74 billion by 2029.
What is the current South Africa Grain Market size?
In 2024, the South Africa Grain Market size is expected to reach USD 8.37 billion.
What years does this South Africa Grain Market cover, and what was the market size in 2023?
In 2023, the South Africa Grain Market size was estimated at USD 7.78 billion. The report covers the South Africa Grain Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Grain Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Grain Industry Report
Statistics for the 2024 Grain in South Africa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Grain in South Africa analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South Africa Grain Market Report Snapshots
