Grace Ashiru
South Africa’s online grocery sector is experiencing unprecedented growth, with market projections indicating a rise to R80 billion (around $5 billion USD) by 2026. This growth reflects a significant shift in consumer behaviour, particularly among middle and upper-class shoppers.
Industry experts predict even stronger momentum beyond 2026, with market values potentially reaching between R120 billion and R130 billion by 2029. These forecasts are consistent with Statista’s Digital Market Outlook, which anticipates the number of South African e-commerce users to nearly double from 11.7 million in 2025 to 21.52 million by 2029.
The sector’s transformation is particularly evident in its evolving customer service strategies. Major retailers are increasingly adopting a “people-before-products philosophy,” shifting away from traditional transaction-based models towards engagement driven by customer experience.
This evolution aligns with the growing adoption of mobile commerce. The anticipated addition of 6 million e-commerce users by 2024 is largely attributed to smartphone-led shopping, pushing retailers to embrace mobile-first strategies as a priority.
Demographic shifts are proving equally significant. While consumers aged 25-44 continue to dominate online grocery shopping, there is notable growth among older shoppers (45-64), indicating a wider acceptance of this trend across age groups.
In response to these evolving dynamics, new players are transforming the competitive landscape. Yassir, a leading e-grocery platform, has introduced aggressive promotional strategies, including discounts of up to 30% on groceries through November 30th and “Fresh Produce Tuesdays,” offering 50% off fresh items.
“The market’s growth presents substantial opportunities for entrepreneurs, particularly in underserved areas like townships,” the report notes. These opportunities are further driven by rising consumer demand for personalised shopping experiences and convenient delivery services.
However, the sector’s expansion is not without its challenges. The report highlights the critical importance of robust security measures, such as two-factor authentication, to sustain consumer trust in digital transactions.
Looking ahead, the market’s trajectory points to a transformative restructuring of South Africa’s retail sector. With projections showing continued strong growth through 2029, the online grocery market is set to become an increasingly vital component of the country’s retail landscape.
The transformation goes beyond simple convenience. Retailers are leveraging personalisation technologies and mobile-first platforms to set new benchmarks for customer engagement, potentially shaping retail practices across the African continent.
For consumers adapting to this changing landscape, the report advises making use of price comparison tools and staying vigilant for promotional offers, especially during holiday seasons when retailers tend to ramp up their campaigns.
These advancements point to a wider digital transformation within South African commerce, with effects that reach far beyond the grocery sector. As market values steadily rise, the online grocery boom is proving to be more than just a passing trend—it represents a profound restructuring of South African retail.
