The year 2020 was not found to be very promising to many industries due to the COVID-19 pandemic but in the case of fruits and vegetables, the market witnessed a mixed impact of both positives and negatives. Initially the fruits and vegetables market faced a supply crunch due to prolonged restrictions on the trade movements, loss of quality produces, harvesting got hampered due labour shortage, etc.

While on a positive note the demand for fruits and vegetables got increased due to consumers rising preference to eat healthy to boost immunity. The sale on the retail market got increased over both online and offline platforms.

The growing demand for derived products, such as fruit juice and jams, and the increase in consumer awareness towards healthier alternatives such as fruits and vegetables are some of the factors driving the market growth.

Favorable government initiatives in making free trade agreements with countries such as United States, China and Japan is boosting the regional exports of major fruits and vegetables.

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Key Market Trends

Increase in Healh Consiousnes Among Consumers

The growing health consciousness among South African consumers has resulted in consumers spending more on healthier foods such as vegetables. The country has been identified as one of the most unhealthy countries in the world according to a global health ranking. Owing to health complications, South African consumers are switching to healthier alternatives. This has reflected in an increase in area harvested under organic farming, which includes fruits and vegetables.
Organic fruits and vegetables are gaining popularity due to an increase in consumer concern over the usage of chemical pesticides or fertilizers. With the increase in the number of consumers switching healthier alternatives, the demand for fruits and vegetables is projected to grow during the forecast period.

Rise in Demand for Avocados

Avocado production in South Africa is an export-oriented industry, aimed primarily on the European market accounting for more than 50.0% of the total exports. The Free trade agreement between the European Union and South Africa is promoting the increase in exports to the European Union. The climatic variability between the growing regions gives the industry the ability to produce avocados from the end of February to the beginning of September.

In addition to exports, the domestic consumption of Avocados has been increased over the last few years, which has resulted in a rise in imports during the off-season. Fuerte avocado is the most commonly preferred avocado among South African consumers. About 40.0-45.0% of South Africa's avocados are exported and 10.0-15.0% are processed and rest are sold locally. With recent efforts from the South African government to provide market access to the United States, China, and Japan, the market for avocados is expected to grow during the forecast period.


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