SA’s organic and natural products industry is on a rapid growth path, creating promising opportunities for local business, job creation and export diversification, Standard Bank says.
With strong financial backing, growing consumer demand, strategic international positioning and a projected growth of 13.25% in 2024-29, the sector is poised to play a key role in the country’s economic future, the bank said.
“The organic and natural products industry is no longer just a niche market — it’s becoming a substantial economic driver with tremendous growth potential,” said Standard Bank head of provincial enterprise banking Qaanitah Dollie.
The sector, valued at about R1bn annually, is expanding as health-conscious consumers prioritise sustainability and locally sourced products.
This growth is not only domestic. Standard Bank said the sector holds strong export potential, particularly in markets such as the US and China, where demand for high-quality organic goods continues to rise.
“What makes this sector particularly exciting from a banking perspective is the diversity of business models emerging,” Dollie said. “From farm-to-table organic food producers to innovative natural cosmetics manufacturers, these businesses are creating new value chains while addressing growing consumer demand for products that are both environmentally and socially responsible.”
The organic and natural products market includes organic foods, natural cosmetics and skincare, herbal supplements and eco-friendly household products.
The SA market was driven by a growing demand for health-conscious, sustainable and locally produced goods, Dollie said.
Among the largest segments in the indigenous biological resources sector, personal hygiene products dominate with a 40% share of the domestic retail market, followed by cosmetics (38%) and complementary medicines (11%).
She said consumers, particularly urban residents, high-income households and parents with young children were increasingly prioritising organic options due to health concerns and environmental awareness, creating opportunities for local brands as South Africans show a strong preference for domestically produced goods over international alternatives.
Dollie said the country’s unique biodiversity, extended growing seasons and increasing reputation for high-quality organic products provided a competitive advantage in global markets. This strengthened the country’s ability to become a key player in the international organic trade.
However, challenges remained in the export market as much of the biodiversity-based products are exported in raw form rather than as high-value finished goods, she said.
Rooibos tea has emerged as a major export success, benefiting from reduced Chinese import tariffs, while other indigenous resources such as Aloe ferox and baobab hold potential for diversification.
“The export market is dominated by only a few species such as Aloe ferox (bitter aloe) and Harpagophytum procumbens (devil’s claw). There is potential for diversification of species for export, such as Hoodia gordonii, Adansonia digitata (baobab), Sclerocarya birrea (marula) and Citrullus lanatus (Kalahari melon),” Dollie said.
“Rooibos tea, a uniquely SA product, has seen significant growth in the Chinese market after China’s reduction of import tariffs. Previously, tariffs ranged from 15%-30%, creating barriers to entry. With the recent reduction to 6%, the rooibos industry is now better positioned for expansion, contributing to economic development and increased trade opportunities.”
Dollie said the country remained highly competitive in Africa’s organic market due to its rich biodiversity, yet the bioprospecting sector had only tapped into about 20% of its potential.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.