Africa is one of the continents in the world that is experiencing rapid economic growth. This economic development means that a growing number of consumers have purchasing power for goods and services. South Africa is one such market in which the demand for Norwegian salmon has increased dramatically.
Export statistics from Norway to South Africa reveal a substantial increase in the seafood category , +21% in 2015 vs 2014. Norway exported fish worth 260 million NOK to South Africa in 2015. Of this, NOK210 million salmon, where fresh salmon accounted for 140 million and frozen for 60 million. In volume the export of salmon was 6,000 tons in 2015. A limited volume of dried cod as was also exported.
Potential for growth
South Africa is an increasing seafood market. The market for salmon in particular has increased despite increased prices and weak currency.
EFTAs free trade agreement with South Africa through Southern African Customs Union explains why Norway has become one of the biggest supplier and dominates the South African salmon market.
Innovation Norway in South Africa has recently completed a study of the Seafood market and our findings shows that the future for Norwegian seafood is promising. There are also potential for growth for other species than salmon.
Norway is profiled highly as a top quality seafood brand. There are positive consumer trends including focus on healthier diets, a growing middle class, increasing preference for sushi, the impact of tourism sector and annual supply throughout the year.
Both seafood demands and variety is increasing among the middle class. GDP per inhabitant is one of the highest in Africa. Origin of seafood is important and exporters with focus on sustainability are of strong interest.
The market is well structured and there are opportunities within the complete value chain – from importers and distributors to hotels, restaurants and not least retailers.
South Africa can be a gateway to other countries in sub Sahara Africa and there are distribution channels to be explored.
Potential business partners
Entering this market requires a long term strategy. It is recommended to partner with a professional local importer/ distributor who supplies a solid customer base. It is important to actively communicate and maintain the partner relationship.
For further information please contact the Innovation Norway in South Africa
Mobile: +47 90261028
Mobile: +27 82 4527328