The food and beverage industry in South Africa recorded a promising increase in revenue in February 2024, with a 2.6% rise at constant 2019 prices compared to the same month in the previous year.
What drove the revenue increase in February 2024?
According to Statistics South Africa, February’s growth was significantly driven by a remarkable 9.2% increase in revenue from catering services, which contributed 1.1 percentage points to the overall increase.
Restaurants and coffee shops also contributed positively, with a growth of 1.8%, adding 1.0 percentage points to the overall increase.
Sector-specific performance analysis
- Catering Services: This segment showed the most substantial growth, reflecting an increase in events and functions as the industry recovers from previous downturns.
- Restaurants and Coffee Shops: Continued to show resilience with a 1.8% increase, suggesting stable consumer spending in this sub-sector.
- Takeaway and Fast-Food Outlets: These outlets saw a moderate growth of 1.5%, indicating ongoing consumer demand for convenience.
South Africa’s food and beverage sector: Three-month income trends
Looking at the period from December 2023 to February 2024, the total income for the sector increased by 1.8%.
Restaurants and coffee shops were notably the primary contributors to this growth, with a 4.2% increase, which signifies a robust consumer return to dine-in experiences.
In monetary terms, the income for food and beverages adjusted to constant 2019 prices reached nearly R6 billion in February 2024.
The data also shows a seasonally adjusted increase of 3.9% from January to February 2024, marking a positive trajectory as the sector adapts to new market conditions and consumer preferences.
The sustained growth in the food and beverage sector is indicative of broader economic recovery and resilience.
This sector’s performance is crucial for employment, with significant contributions to both direct and indirect job creation.
Moreover, the trends observed can inform policy-making, particularly in areas concerning small business support, tourism, and hospitality industry stimulation.