Agriculture in South Africa Market Size (2024 - 2029)

The market size of agriculture in South Africa is expected to grow significantly in the coming years, despite the challenges faced during the COVID-19 pandemic. The agricultural sector is diverse and market-oriented, with a focus on crops such as grains, cereals, and various fruits and vegetables. The demand for these products is driven by the increasing population and the need for staple foods like maize and wheat. Additionally, the market for fruit-derived products like juices and jams is also on the rise. The country also has a notable wine industry that significantly contributes to the agricultural market size. Despite currently relying on imports for certain oilseeds, the country is projected to become self-sufficient in the future, further expanding the market size.

Market Size of Agriculture in South Africa

South African Agriculture Market Summary
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 %
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South Africa 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).

The lockdown restrictions, changing consumer choices, and limited buying power of consumers during COVID-19 have resulted in piling up of stocks of commodities such as potatoes which led to a decline in prices of these commodities.

South African agriculture is highly diversified and market-oriented. The country's major important crops are grains and cereals such as rice, wheat, barley, and soybeans. According to FAOSTAT, the area under grains and cereals production was 2,660.4 thousand hectares in 2016, which increased by 13.1% and reached 3,062.8 thousand hectares in 2019. In 2019, the farm income of South African farmers increased by 4.3%, and the prices that farmers pay for agricultural inputs increased by 5%. This decline in farm income may refrain farmers from using various modern agricultural technologies, which in turn affects agriculture production. The increase in the population level of the country has fueled the demand for cereals. Maize is the staple food in the country, consumed in its direct form, and is used for products such as sweeteners, bread, and cornmeal. Wheat is also another major staple food in the country, which is mostly imported, as it is economical to import rather than produce it domestically. The major fruits consumed in the country are apples, pears, litchis, mangoes, plums, peaches, apricots, grapefruit, pineapples, avocados, and lemons. There is also an increasing demand for products derived from fruits, such as fruit juices and jams, in the country that drives the market. Also, more than 1.5 million metric tons of grapes are used every year domestically in South Africa's renowned wine industry. The most demanded vegetables in the country are lettuce, chicory, pumpkins, tomatoes, and carrots. Apart from these, leafy vegetables, like cleome, amaranth, blackjack, and Jew's mallow, which are locally produced, are also consumed in the country. Most of the country's oilseed demand is met by domestic production. However, palm oil, a well-in-demand oilseed in the country, is currently imported from Indonesia and Malaysia. In the forecast period, the country is expected to reduce imports to a great extent and become self-sufficient in the production of oilseeds.

South Africa Agriculture Industry Segmentation

The report defines agricultural products in terms of the end users. The scope does not include agriculture products processed in any form, such as frozen, freeze-dried, cooked, canned, etc. The Agriculture in South Africa Report is segmented by Crop Type (Cereals, Fruits, Vegetables, and Oilseeds/Non-food Crops), which includes Production Analysis (Volume), Consumption Analysis (Value and Volume), Export Analysis (Value and Volume), Import Analysis (Value and Volume), and Price Trend Analysis for each segment.

Crop Type
Cereals
Fruits
Vegetables
Oilseeds

Agriculture in South Africa Size Summary

The South African agriculture market is projected to experience significant growth in the coming years. The market is highly diversified and market-oriented, with primary crops including grains, cereals, and a wide variety of fruits and vegetables. The agriculture sector is expected to grow due to increasing population levels and demand for cereals. The industry also sees a high demand for products derived from fruits, such as fruit juices and jams. The country's renowned wine industry also plays a significant role in the agriculture market. In addition, South Africa is working towards becoming self-sufficient in the production of oilseeds, reducing the need for imports. Rapid population growth and increasing economic prosperity are driving the demand for the agricultural sector in South Africa. With the growing population, the demand for food is expected to double. The demand for fruits and vegetables is further driven by increasing income, rapid urbanization, and a shift in consumers' diet preferences towards nutritional food. The rising health consciousness among the population has also boosted the demand for fresh fruits and vegetables. Food crops, particularly maize, wheat, and barley, dominate the South African agricultural market. The government's supportive policies and initiatives are expected to further drive the growth of the agriculture sector in the country.

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Agriculture in South Africa Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

  2. 2. MARKET SEGMENTATION

    1. 2.1 Crop Type

      1. 2.1.1 Cereals

      2. 2.1.2 Fruits

      3. 2.1.3 Vegetables

      4. 2.1.4 Oilseeds

Agriculture in South Africa Market Size FAQs

The South Africa Agriculture 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.

In 2024, the South Africa Agriculture Market size is expected to reach USD 16.12 billion.

Agriculture in South Africa Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)