South Africa’s online grocery sector is undergoing a profound transformation, with market projections indicating a surge to R80 billion (approximately $5 billion USD) by 2026.
The shift towards digital grocery shopping, particularly among middle-class and affluent consumers, signals a watershed moment for South African retail. Industry analysts project further expansion to R120-130 billion by 2029, highlighting the sector’s robust growth trajectory.
Digital adoption rates underscore this transformation. According to Statista’s Digital Market Outlook, South Africa’s e-commerce user base is set to nearly double, growing from 11.7 million users in 2025 to 21.52 million by 2029.
This growth stems from fundamental changes in how retailers approach digital commerce. “The emphasis on customer-centric models, rather than purely transactional relationships, is reshaping the market,” says Yassir, a prominent player in the space. The company has recently launched initiatives including up to 30% discounts on groceries through November, specifically targeting cost-conscious consumers during the festive season.
Mobile commerce emergence plays a pivotal role, with smartphones becoming the primary shopping tool for many South Africans. This shift has prompted retailers to prioritise mobile-first strategies, particularly in urban areas where digital infrastructure supports such transitions.
Demographic patterns reveal interesting trends. While consumers aged 25-44 lead adoption rates, there’s notable growth among older shoppers (45-64), suggesting broader market acceptance. This diversification has prompted retailers to develop more inclusive, user-friendly platforms.
The transformation extends beyond major urban centres, creating opportunities for entrepreneurs in previously underserved areas, including townships. Success in these markets requires deep understanding of local consumer preferences and strategic partnerships with community businesses.
As the sector evolves, security remains paramount. Industry experts emphasise the importance of robust transaction protection, including two-factor authentication, to maintain consumer confidence.
The market’s expansion reflects broader changes in South African consumer behaviour, with convenience and personalisation becoming increasingly important. Retailers are responding with innovations in delivery speed, operating hours, and customised shopping experiences.