Big Snack Manufacturers Have Had Their Chips: The Rise of Small Snack Brands in South Africa

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In the past few years, there’s been a noticeable shift in the South African snacks market. Gone are the days when your only choices for chips were the big names like Simba and Willards, owned by giant listed corporates. Now, small manufacturers are making their mark, and it’s a development that’s been brewing since around 2023, when they began penetrating the low end of the grocery market. These smaller brands often offer chips at a fraction of the price you’d pay for the well-known brands, and surprisingly, many of them are as tasty—if not tastier.

In 2024, it’s not just a blip anymore—small snack manufacturers have truly come to the fore. These producers are using a price penetration strategy that targets both the lower end of the market (those corner shops and budget supermarkets) and, increasingly, the higher end in larger supermarkets. What’s fascinating is the variety of flavors and types of chips they’re putting out, some of which are downright delicious. Of course, there are also some that leave much to be desired, but hey, that’s a matter of taste!

The chips are just the start. Another trend I’ve noticed is with pretzels. For a long time, we’ve only had imported pretzels on the shelves, and they’ve been anything but cheap. Now, small local manufacturers are not only producing pretzels but are also introducing new, exciting flavors. These locally made pretzels are popping up everywhere—from high-end supermarkets to those dusty bottom-end shops—and they’re selling well. It’s a sign that these smaller manufacturers aren’t just testing the waters anymore; they’re diving in headfirst.

Competition, as we know, is great for consumers. It pushes everyone to innovate or risk being left behind. It’s been interesting to see how the big snack brands are responding. Walk into any supermarket, and you’ll find price specials like on buying two large packets of chips for lower than the regular price. There’s also a noticeable uptick in house-brand chips, repackaged and often tasting better than their traditional counterparts. These promotions show the big brands are starting to feel the pressure. Even local and regional manufacturers have been running special deals on their crisps for months on end.

But here’s the thing—what happens once these smaller manufacturers have captured a significant market share? Will we see their prices rise to match the big brands? It’s hard to say for sure, but I wouldn’t be surprised if we start seeing some price hikes down the line.

For now, it’s a fascinating time to be a snack lover in South Africa. The market is worth an estimated USD 1.78 billion in 2024 and is projected to keep growing. Consumers are spoiled for choice, with healthier, more diverse, and affordable options across the board. The rise of smaller manufacturers is a classic example of how competition shakes up an industry, and it’ll be interesting to see where this all leads as we move into 2025 and beyond .

P.S.: What’s your favorite local chip brand? Let me know in the comments—I’d love to hear your take on these new kids on the block!