The local organic and natural products industry is expected to record double-digit growth in coming years as consumers increasingly prioritise health, sustainability and locally made goods.
Dominated by beauty products, which account for 60% of the total market, the industry is estimated to be worth R1bn and is expected to grow 13.25% by 2029, according to Qaanitah Dollie, Western Cape head of enterprise banking at Standard Bank.
Over the years, retail grocers have created shelf space for the organic-natural, health and wellness categories, making such products widely available.
Dollie said the sector represented a promising avenue for business development, job creation and export diversification.
The organic and natural products sector is predominantly driven by small businesses, many of which create truly innovative products
— Warren Hickinbotham, CEO of AxessHealth
“The organic and natural products industry is no longer just a niche market — it’s becoming a substantial economic driver with tremendous growth potential.”
She said local entrepreneurs were building businesses that responded to changing consumer preferences and created sustainable supply chains that benefited entire communities.
Warren Hickinbotham, founder and CEO of AxessHealth, said “the organic and natural products sector is predominantly driven by small businesses, many of which create truly innovative products”.
This week the Organic & Natural Products Expo Africa hosted its second annual exhibition in Cape Town, showcasing local and international organic products.
Hickinbotham estimated South Africa had at least 3,000 producers and suppliers of organic products — and possibly twice that number.
“Since the expo started back in 2022, we’ve seen a surge in the cosmetic and personal care categories, accounting for about 60% of our current exhibitors.”
He said consumer education was a challenge.
“Many of the benefits of these products are not evident by simply looking at the packaging. An educated consumer buys more. From a grower-farmer perspective, lower yields typically associated with organic agriculture drive up prices, so consumers now associate organic with expensive.”
But Hickinbotham said this picture was changing as organic agriculture evolved and found ways to boost yield.
“What makes this sector particularly exciting from a banking perspective is the diversity of business models emerging,” said Dollie.
From farm-to-table organic food producers to innovative natural cosmetics manufacturers, these businesses were creating new value chains while addressing growing consumer demand for products that were environmentally and socially responsible, she said.
There are also export opportunities, particularly to the US and Chinese markets, Dollie said, speaking before the latest US trade tariffs were announced this week.
South African organic producers were gaining an international reputation for quality, she said, and benefited from the country’s biodiversity and the fact their growing seasons complemented markets in the northern hemisphere.
Hickinbotham said there was growth potential for exports of natural cosmetics: “South Africa, and indeed Africa, have many unique products not available anywhere else in the world.”
Much of South Africa’s organic fruit and vegetables had already found foreign buyers. Russia had recently expressed interested in importing organic bananas and lemons from South Africa, he said.
“The indigenous ingredients category, things like moringa, baobab, sceletium, honeybush, buchu and more, all present large bulk export potential,” Hickinbotham said.
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