Business Report

Fast food fuels growth in food and beverage sector

Nicola Mawson|Published

Fast food is driving food and beverage growth.

Image: Supplied

Takeaway and fast-food outlets are driving growth in South Africa’s food and beverage sector, according to the latest data from Statistics South Africa.

In May, income generated by the overall industry rose in real terms by 4.5% compared to the same month last year, with quick-service outlets contributing the bulk of the increase. Fast food and takeaway chains made the biggest impact on the sector’s performance over both the monthly and three-month reporting periods.

Statistics South Africa’s latest data shows that food and beverage businesses recorded an uptick of 4.3% in income for the three months to May, compared to the same period in 2024. Once again, fast food operators led the way, making the biggest contribution to the growth.

In May alone, takeaway and fast-food establishments were the single largest driver of the year-on-year increase in total income across the sector, outpacing restaurants, coffee shops, and catering services.

Research from Apollo Reports shows that the fast food and quick service restaurant market was valued at $2 billion, or R35.1bn, in 2022 with an expectation of it growing to R60bn by 2032. The overall food and beverage market is worth almost R7bn, Statistics South Africa’s figures show.

Popular segments include outlets modelling themselves on American and Mexican offerings, while Chinese food remains popular, Apollo found. American and Chinese segments collectively are expected to account for about a 50.5% share of the market, it noted.

May also saw seasonally adjusted income for the fast-food sector grow at a faster pace than other types of outlets, the agency said. This follows growth in both April and March, signalling a positive trend in consumer spending on prepared food.

Other types of food and beverage businesses, including restaurants and pubs, also saw income gains, while bar sales gained 6.7% year-on-year.

Statistics South Africa adjusts its income figures to constant 2019 prices to strip out the effect of inflation.

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