How quick commerce, geographic expansion, energy resilience, and explosive market growth are transforming temperature-controlled logistics across the food value chain

South Africa’s food retail and wholesale sector is undergoing its most significant transformation in decades, and cold chain infrastructure sits at the heart of this change. The country’s major retailers are racing to expand refrigerated last-mile delivery, building dark stores to meet on-demand grocery demand, investing billions in backup power systems, and expanding into previously underserved communities—all of which require sophisticated temperature-controlled logistics.

For cold chain operators, equipment suppliers, and service providers, understanding these shifts isn’t optional. The retailers driving this transformation expect their cold chain partners to keep pace with rapid innovation, geographic expansion, and increasingly stringent performance requirements.

This analysis examines four interconnected trends reshaping the relationship between food retail and cold chain logistics in South Africa, drawing on market research, industry reports, and operational data to provide actionable insights for cold chain professionals.

The Four Trends Defining 2025 and Beyond

Trend 1: The Quick Commerce Revolution and Last-Mile Cold Chain

The most visible transformation in South African food retail is the explosive growth of on-demand grocery delivery—and it’s fundamentally changing cold chain requirements at the last mile.

Checkers Sixty60: A Cold Chain Case Study

The scale of Checkers Sixty60’s growth is staggering. In the financial year ending June 2025, Shoprite’s on-demand delivery platform generated R18.9 billion in sales of groceries, liquor, and general merchandise—a 48% year-on-year increase. To put this in perspective, Sixty60’s revenue now equals approximately 40% of the entire Woolworths Foods business, including its concessions.

More significantly, Sixty60 has captured more than 80% market share of on-demand grocery delivery in South Africa, according to Reveal Insights research cited by Shoprite. This dominance has practical implications for cold chain operators: the platform now picks over one million products per day for deliveries, with a 97% stock fulfilment rate and 94% on-time delivery performance.

Woolworths Responds with Cold Chain Differentiation

Woolworths has responded to Sixty60’s rise with its own rapid delivery service, Woolies Dash. While Dash is available from fewer stores (approximately 80 locations compared to Sixty60’s 600+ store network), Woolworths has differentiated its service through cold chain excellence.

Woolworths has positioned itself as “the only retailer in South Africa to offer cold chain in both regular deliveries as well as on-demand Dash service,” emphasising store-to-door temperature control throughout the delivery process. This approach mirrors technology used by meal kit delivery services, using active temperature-controlled packaging to maintain product integrity during transit.

The company reported 150% sales growth in Dash over the past year, demonstrating strong consumer response to premium cold chain capabilities in rapid delivery.

The Rise of Dark Stores and Micro-Fulfilment Centres

As on-demand delivery volumes have grown, retailers have discovered that conventional store-based picking creates operational bottlenecks. The solution: dedicated dark stores and micro-fulfilment centres optimised for delivery operations.

Checkers opened two state-of-the-art dark stores in Gardens and Maitland in Cape Town during 2024, designed to streamline Sixty60 service in high-demand areas, improve stock management, and accelerate product fulfilment. While Checkers hasn’t disclosed its full dark store expansion strategy, industry sources indicate additional micro-fulfilment centres are being established in high-demand areas across Gauteng and the Western Cape.

Woolworths is similarly expanding its dark store network, recognising that dedicated fulfilment facilities offer significant advantages for temperature-controlled products where handling time directly affects quality.

Zulzi, the technology company that built the original Sixty60 platform, operates seven dark stores across Johannesburg and Pretoria, processing over 5,000 daily orders with 300 drivers on its network. The company reported 80% year-on-year growth, underscoring the broader market momentum.

Walmart Enters the Arena

The competitive landscape shifted dramatically in late 2025 when Walmart opened its first branded stores in South Africa—introducing a global cold chain leader to the quick commerce battle.

Walmart opened its first store at Clearwater Mall, Roodepoort on November 22, 2025, followed just six days later by a second location at Fourways Mall. These openings marked Walmart’s first branded retail presence on African soil, though the company has owned Massmart (Game, Makro, Builders Warehouse) since completing its acquisition in 2022.

Critically for the cold chain sector, Walmart launched alongside its stores an Africa-version shopping app offering 60-minute express delivery within a five-kilometre radius. The app specifically highlights “fresh and frozen foods, groceries, adult beverages and small appliances”—product categories requiring sophisticated cold chain logistics.

Massmart confirmed the app “combines the best of Walmart’s global tech expertise with locally developed pick, pack, and delivery systems.” The company is using a mixed fleet of motorcycles and larger delivery vehicles, mirroring the Sixty60 model but backed by Walmart’s global supply chain capabilities.

What makes Walmart’s entrance particularly significant for cold chain operators:

• Global Cold Chain Expertise: Walmart operates one of the world’s largest and most sophisticated cold chain networks. The company’s temperature-controlled logistics capabilities, developed across 19 countries, now enter the South African market.
• Technology Integration: Walmart’s Express service in the United States can fulfil orders in as little as five minutes post-payment. While South African operations will adapt to local conditions, the technology foundation exists for rapid cold chain fulfilment.
• Price Competition: Walmart’s “Every Day Low Prices” positioning puts pressure on margins throughout the supply chain. Cold chain operators serving this channel will face demands for efficiency gains and cost reduction.
• Supply Chain Localisation: Walmart’s African Growth Summit recruited small and medium-sized suppliers from 12 African countries. This signals expanded cold chain networks connecting local producers to formal retail channels.

The intensity of quick commerce competition—with Sixty60, Woolies Dash, and now Walmart all offering 60-minute refrigerated delivery—raises the bar for cold chain performance across the industry.

Cold Chain Implications

For cold chain operators and equipment suppliers, the quick commerce revolution creates specific demands:

• Last-Mile Refrigeration Equipment: The shift from bulk deliveries to individual orders requires different equipment profiles. Temperature-controlled delivery bags, eutectic plates for motorcycle and scooter delivery, and compact cold chain packaging are seeing increased demand.
• Micro-Cold Room Solutions: Dark stores and micro-fulfilment centres require modular cold storage solutions that can be rapidly deployed in urban locations. Walk-in cold rooms between 20-100 cubic metres, blast chillers for rapid temperature reduction, and display-style reach-in units are key equipment categories.
• Temperature Monitoring Integration: Retailers expect real-time visibility into cold chain performance across distributed networks. IoT-enabled temperature monitoring with cloud-based dashboards, automated alerting, and compliance documentation are becoming baseline requirements.
• Rapid Response Maintenance: When a dark store’s refrigeration fails, orders must be rerouted within minutes. Cold chain service providers with rapid-response capabilities and comprehensive spare parts inventory gain competitive advantage.

Trend 2: Geographic Expansion into Underserved Areas

While quick commerce captures headlines, a quieter revolution is reshaping cold chain requirements across South Africa’s geography. Major retailers are aggressively expanding into townships, rural areas, and low-income neighbourhoods—areas historically underserved by formal retail cold chain infrastructure.

Retailer Expansion Strategies

Shoprite, through its Checkers brand, continues opening high-end stores while simultaneously extending reach into underserved communities. In the latest financial year, the group added 281 stores across its markets and brands, including 184 supermarkets in South Africa. This expansion has created 8,723 new jobs, bringing Shoprite’s total employment to 168,939.

CEO Pieter Engelbrecht has emphasised “a particular focus on extending their reach in underserved communities in South Africa.” This isn’t just about new store formats—it’s about building cold chain infrastructure where it previously didn’t exist.

The company has also extended Sixty60 to Shoprite stores (not just the upmarket Checkers brand), bringing on-demand refrigerated delivery to lower-income customers. Following a pilot in Gauteng and the Western Cape provinces, Sixty60 launched in 19 Shoprite stores across eight provinces.

Formalising Informal Trade

Large retailers are exploring partnerships with spaza shops—informal neighbourhood stores that serve as primary grocery sources for millions of South Africans. These partnerships have significant cold chain implications.

Spaza shops typically lack refrigeration infrastructure, limiting their product range to ambient goods. Retailer partnerships could extend cold chain reach through:

• Supply of small-format refrigeration equipment
• Refrigerated delivery from nearby formal retail locations
• Shared cold chain logistics networks
• Training on cold chain compliance and food safety

This represents a substantial market opportunity for cold chain equipment suppliers and service providers who can develop solutions appropriate for informal retail environments.

Infrastructure Challenges in Expansion Areas

Expanding cold chain operations into underserved areas creates specific challenges:

• Power Reliability: Many expansion areas experience more frequent and prolonged load shedding than urban centres, making backup power essential for any cold chain operation.
• Road Conditions: Poor road infrastructure affects refrigerated transport, increasing maintenance requirements and transit times that affect product temperature stability.
• Technical Skills Availability: Finding and training staff with cold chain competencies can be challenging in areas distant from traditional retail concentrations.
• Equipment Security: Cold chain assets in high-crime areas require enhanced security measures.

Cold chain operators who can solve these challenges—through robust equipment design, comprehensive training programmes, and innovative service models—will find significant growth opportunities.

Trend 3: Energy Resilience and the Renewable Transition

South Africa’s energy crisis has transformed cold chain operations from a logistics challenge into an energy management discipline. Load shedding and rising electricity costs have forced retailers and cold chain operators to fundamentally rethink their approach to power.

The Cost of Power Instability

The financial impact on retail cold chains has been substantial. A major retailer recently reported that load shedding costs exceeded R500 million annually—just for running generators. This figure doesn’t include product losses, spoilage, or the operational complexity of managing refrigeration during power outages.

Research from Trace Data indicates that load shedding can increase operational costs for cold chain providers by 30-40%. Combined with electricity tariff increases of 18.65% in 2024 (following 15% in 2023), energy costs have become a strategic concern at board level.

For cold chain operators, the implications extend beyond cost. Temperature excursions during power interruptions can compromise product safety, damage customer relationships, and create regulatory compliance issues. The cold chain either maintains temperature integrity continuously, or it fails.

The Shift to Solar and Battery Storage

These pressures have accelerated adoption of renewable energy solutions across the cold chain sector. Solar photovoltaic installations paired with battery energy storage systems (BESS) have moved from “nice to have” to essential infrastructure.

The South African Photovoltaic Industry Association (SAPVIA) reported “rapid” increases in demand for solar and battery storage installations, with businesses prioritising energy security alongside cost savings. Smart refrigeration systems with energy-efficient technologies can reduce energy consumption by up to 30%, according to the South African Refrigeration and Air Conditioning Contractors Association.

Shoprite has demonstrated leadership in this transition, deploying an electric truck charged from solar at its Basson Distribution Centre. This investment serves multiple purposes: reducing diesel price volatility exposure, demonstrating sustainability commitments, and building operational resilience against grid instability.

The consumer goods sector more broadly is racing to adopt renewable energy. Solar paired with BESS significantly improves production uptime, particularly in factories and distribution centres where interruptions are costly. Retailers and FMCG companies are increasingly integrating renewables into logistics operations, with cold chain facilities among the highest-priority applications given their continuous power requirements.

Cold Chain Implications

Energy resilience has become a competitive differentiator for cold chain operators:

• Backup Power Systems: Comprehensive backup power—combining generators, UPS systems, and increasingly battery storage—is now expected rather than exceptional. Clients want to see documented backup protocols and tested failover procedures.
• Solar Integration: Cold storage facilities with solar generation reduce operating costs and demonstrate environmental credentials. For operators serving export markets, carbon footprint reduction supports compliance with mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM).
• Energy Monitoring and Optimisation: Smart energy management systems that optimise refrigeration loads, shift consumption to off-peak periods, and maximise solar self-consumption are delivering meaningful cost reductions.
• Equipment Efficiency: Energy-efficient refrigeration equipment commands premium positioning as operators seek to reduce both grid dependence and operating costs.

Trend 4: Explosive Market Growth and Infrastructure Investment

The structural changes in retail are occurring against a backdrop of explosive cold chain market growth. Multiple research firms project South Africa’s cold chain market to more than triple over the coming years, creating substantial opportunities for operators, equipment suppliers, and service providers who can scale with demand.

Market Size and Growth Projections

Market research reveals consistently strong growth projections for South Africa’s cold chain sector, though specific figures vary by research methodology and market definition:

The South Africa cold chain market generated revenue of USD 6.3 billion in 2023 and is expected to reach approximately USD 20.6 billion by 2030, representing a compound annual growth rate (CAGR) of 18.4% according to Grand View Research. Other analysts project the market will exceed USD 13 billion by 2029, growing at 7.94% annually.

The warehousing and cold chain market specifically reached more than USD 1 billion in 2024 and is expected to grow at a CAGR of 9.36% between 2025 and 2030 according to Makreo Research.

South Africa commands 27% of the broader African food cold chain logistics market, which stood at USD 5.42 billion in 2025 and is projected to reach USD 6.66 billion by 2030. The country’s port-anchored infrastructure and mature distribution networks underpin this regional leadership position.

Cold chain monitoring represents a particularly dynamic segment, with the South Africa market projected to grow at a CAGR of 11.5% during 2025-2031, driven by food safety requirements and technology adoption.

Investment in Infrastructure

Significant capital is flowing into cold chain infrastructure:

Commercial Cold Holdings (CCH) has expanded through acquisitions of Cape Cold Storage and iDube Cold Storage, consolidating pallet storage capacity. Vector Logistics and CCS Logistics maintain substantial market positions.

A major supply chain management and logistics company has constructed a warehouse spanning 25,500 square metres with an investment of approximately USD 10 million, making it one of the most extensive cold storage infrastructures in Africa.

DP World has earmarked USD 3 billion for African port and logistics upgrades, with USD 1 billion targeted at cold chain capabilities. These investments will enhance South Africa’s role as a regional cold chain hub.

Volvo Trucks South Africa delivered two battery-electric FH 6×4 tractors to Vector Logistics in March 2025, marking the fleet’s first net-zero cold chain vehicles—a harbinger of fleet electrification trends.

Technology Adoption Accelerating

Technology investment in cold chain operations is accelerating across multiple dimensions:

• IoT-Enabled Monitoring: The global cold chain monitoring market size was estimated at USD 35 billion in 2024 and is projected to reach USD 120 billion by 2030, growing at 23% annually. South African operators are adopting these solutions to meet regulatory requirements and customer expectations.
• Telematics Integration: Modern telematics platforms combine compressor diagnostics, door-open alerts, and CO₂-equivalent dashboards, letting shippers benchmark sustainability performance and demonstrate compliance.
• AI and Predictive Analytics: Analytics-driven systems are being used to detect anomalies, forecast temperature deviations, and assess equipment health in real time, reducing product loss and ensuring uninterrupted cold conditions.
• Smart Refrigeration: Investments in smart refrigeration systems with IoT-enabled temperature monitoring and energy-efficient cooling solutions are projected to reach R5 billion in coming years.

Segment-Specific Growth Patterns

Different cold chain segments show varying growth trajectories:

• Refrigerated Storage captured 38% of Africa’s food cold chain logistics market in 2024 as producers sought buffer capacity to smooth harvest-linked supply spikes.
• Refrigerated Transportation is forecast to grow at 4.10% CAGR to 2030, underpinned by corridor upgrades and intermodal innovations. CEVA Logistics’ adoption of reefer rail wagons between South Africa and Namibia illustrates emerging opportunities.
• Value-Added Services—from kitting and pre-cooling to pallet re-configuration—register the quickest revenue growth as retailers outsource complex preparation tasks.
• Chilled applications are set to expand at 4.90% CAGR between 2025-2030, growing faster than frozen segments as fresh food demand increases.

What This Means for Cold Chain Operators

The convergence of these four trends creates both opportunities and challenges for cold chain operators across the value chain.

Immediate Priorities

• Last-Mile Capability Development: Operators without last-mile refrigerated delivery capabilities risk being excluded from the fastest-growing market segment. This may require partnerships with specialised courier networks, investment in motorcycle/scooter-friendly cold chain packaging, or development of urban micro-fulfilment solutions.
• Energy Resilience Investment: Backup power is no longer optional. Operators should develop comprehensive energy resilience strategies that combine generator backup, battery storage, and solar generation where feasible. Documenting backup protocols and testing procedures provides competitive advantage in tender processes.
• Technology Integration: Real-time temperature monitoring with cloud-based dashboards, automated alerting, and compliance documentation is becoming a baseline expectation. Operators should evaluate IoT monitoring solutions and ensure their systems can integrate with customer visibility platforms.
• Geographic Expansion Planning: As retailers extend into underserved areas, cold chain operators need strategies for serving these markets. This may include mobile cold storage solutions, partnership models with local operators, or phased infrastructure investment.

Competitive Positioning

Service Differentiation: In a growing market, differentiation becomes essential. Operators can differentiate through:

• Superior temperature compliance records
• Faster response times and broader geographic coverage
• Integrated technology platforms
• Sustainability credentials and carbon footprint reduction

Customer Alignment: The retail customers driving market growth expect cold chain partners who understand their business models. Operators serving quick commerce platforms need different capabilities than those focused on traditional distribution.

Certification and Compliance: As regulations tighten and customers demand documentation, certifications (R638 compliance, ISO standards, HACCP certification) become more valuable. Operators should invest in compliance infrastructure and documentation systems.

Investment Considerations

The market growth projections suggest substantial returns for well-positioned operators who can scale with demand. Key investment areas include:

• Cold storage capacity expansion, particularly in underserved provinces (Limpopo, Mpumalanga, Northern Cape)
• Refrigerated transport fleet expansion with emphasis on fuel efficiency and electric vehicle readiness
• Technology platforms for monitoring, route optimisation, and customer visibility
• Renewable energy installations to reduce operating costs and improve resilience
• Training and skills development to address industry workforce gaps

Looking Ahead: Cold Chain as Competitive Advantage

The transformation of South Africa’s food retail sector has elevated cold chain from operational necessity to strategic competitive advantage. Retailers who can deliver fresh, safe, temperature-controlled products to customers—whether through 60-minute delivery to urban apartments or weekly shopping trips in rural communities—will win market share.

This creates derivative opportunities throughout the cold chain value chain. Equipment suppliers, monitoring technology providers, maintenance services, training organisations, and logistics operators all benefit from retail’s cold chain investments.

The market is growing rapidly, but so are expectations. Retailers want cold chain partners who can match their pace of innovation, geographic expansion, and commitment to sustainability. Operators who position themselves ahead of these expectations—rather than reacting to them—will capture disproportionate share of the growth.

For cold chain professionals, the message is clear: the sector is at an inflection point. The investments, capabilities, and partnerships developed over the next several years will determine competitive positions for the decade ahead.

Sources & References

About These Sources

This article draws on authoritative sources including market research reports (Grand View Research, Mordor Intelligence, Trace Data), industry publications (GCCA, Moneyweb, BusinessTech), and retail company disclosures. All sources were verified as of December 2025 and represent the most current publicly available information on South Africa’s cold chain and food retail sectors.

Currency Note

Market projections, investment figures, and growth rates reflect research published through late 2025. Actual market development may vary based on economic conditions, regulatory changes, and retail industry dynamics. Readers should verify current status for investment or strategic planning decisions.

Market Research and Analysis

• Grand View Research – South Africa Cold Chain Market Size & Outlook, 2030 Comprehensive market sizing and forecast data for South Africa’s cold chain sector, including segment analysis and growth projections to 2030.
• Mordor Intelligence – Africa Food Cold Chain Logistics Market Analysis Regional analysis of Africa’s food cold chain logistics, including South Africa’s 27% market share position and segment-specific growth forecasts.
• Makreo Research – South Africa Logistics, Warehousing and Cold Chain Market (2019-2030) Detailed analysis of warehousing and cold chain market dynamics, infrastructure gaps, and regional investment patterns.
• Trace Data Research – South Africa Cold Chain Market Outlook to 2029 Market forecast data including analysis of load shedding impacts and operational cost increases for cold chain providers.
• 6Wresearch – South Africa Cold Chain Monitoring Market (2025-2031) Cold chain monitoring technology market analysis with 11.5% CAGR projection and key growth drivers.
• Ken Research – South Africa FMCG Cold Chain Market FMCG-specific cold chain analysis including infrastructure development and technology investment trends.

Retail Industry Reports

• ResearchAndMarkets – The Wholesale and Retail of Food in South Africa 2025 Comprehensive industry analysis including cold chain investments, e-commerce growth, and profiles of major retailers.
• GlobeNewswire – South Africa Food Wholesale and Retail Markets Report 2025 Analysis of retailer expansion strategies, township market development, and operational challenges including cold chain disruptions.

News and Business Media

• Massmart – First Ever Walmart Store on African Continent Now Open Official announcement of Walmart’s first South African store opening, including app launch details and 60-minute delivery service for fresh and frozen foods.
• Massmart – Walmart Announces Opening Date for Second Store in Fourways Coverage of Walmart’s rapid expansion with second store opening and Every Day Low Prices positioning.
• BusinessTech – A Look Inside Walmart’s First Store in South Africa Preview coverage of Walmart’s Clearwater Mall store and broader expansion plans.
• WORLDEF News – Walmart App to Launch in South Africa Analysis of Walmart’s mobile shopping app launch, delivery logistics, and integration of global technology with local fulfilment systems.
• Moneyweb – Checkers Sixty60 Sales Analysis Detailed financial analysis of Checkers Sixty60’s R18.9 billion sales performance and market share position.
• Daily Investor – Woolies Dash Taking the Fight to Checkers Sixty60 Comparative analysis of on-demand grocery delivery services including Woolworths’ cold chain differentiation strategy.
• Daily Investor – Dark Stores Rollout Analysis of dark store development by major retailers and implications for cold chain infrastructure.
• BusinessTech – Shoprite High-End Store Expansion Coverage of Shoprite’s store expansion including new format developments and Sixty60 platform growth.
• Yahoo Finance – Shoprite Expands Sixty60 to Lower-Income Customers Reuters coverage of Sixty60 expansion to Shoprite stores and general merchandise category addition.

Energy and Sustainability

• BDO – Load Shedding: A Chilling Disruption of the Cold Chain Analysis of load shedding impacts on retail cold chains including R500 million+ annual generator costs for major retailers.
• CBN – Why South Africa’s Consumer Goods Sector Is Racing to Adopt Renewable Energy Expert perspective on renewable energy adoption in FMCG and retail sectors, including Shoprite’s electric truck deployment.

Industry Associations

• GCCA – The Cold Chain in Africa Global Cold Chain Alliance analysis of African cold chain development, including trade patterns and infrastructure investment trends.

Technology and Monitoring

• Grand View Research – Cold Chain Monitoring Market Global cold chain monitoring market analysis with technology adoption trends applicable to South African market development.
• Market Research Forecast – Cold Chain Telematics Market Telematics technology analysis including IoT integration, real-time tracking, and data analytics trends.

About ColdChainSA

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