South Africa’s food and beverages industry continues to show signs of resilience and transformation, with the latest data from Stats SA indicating a 4.7% year-on-year increase in total income (measured in real terms, at constant 2019 prices) for April 2025 compared to the same month in 2024.

The most significant contributor to this annual growth was the takeaway and fast-food outlets, which recorded a strong 9.9% increase, contributing 3.8 percentage points to overall industry performance. This data highlights the continuing shift of consumers toward convenience-driven dining options, especially in urban centres.

In contrast, catering services experienced a sharp decline, dropping by 5.9% year-on-year and subtracting 0.7 of a percentage point from the total growth figure. This suggests that while consumers are increasingly eating out or ordering in, institutional and large-scale catering services may still be recovering from long-term disruptions or structural shifts in demand.

Looking at a broader timeframe, total income in the food and beverages industry increased by 1.7% in the three months ending April 2025 (R19.8 Billion), compared to the same three-month period in 2024 (R19.4 Billion). Once again, takeaway and fast-food outlets stood out as the only positive contributor, growing 5.0% and accounting for 1.9 percentage points of this increase.

Other sectors of the industry, such as restaurants and coffee shops or catering providers, appear to have either plateaued or declined, indicating a need for greater innovation or operational adjustments to keep pace with evolving consumer preferences.

Despite the positive year-on-year trends, the seasonally adjusted income for April 2025 decreased by 1.2% compared to March 2025. This decline followed month-on-month increases of 2.5% in March and 0.6% in February, suggesting potential short-term volatility in consumer spending patterns or operational constraints affecting certain market segments.

These figures paint a clear picture: fast-food and takeaway outlets are driving growth in the sector, fueled by rising demand for convenience, affordability, and accessibility. The performance of these businesses suggests strong alignment with post-pandemic consumer habits that prioritise speed, digital ordering, and minimal contact.

However, the decline in catering services and muted performance across other sectors highlight challenges that remain, particularly in capturing group-based or institutional dining needs, which may be impacted by hybrid work arrangements or budgetary pressures in both the public and private sectors.

As consumers continue to navigate economic uncertainty and shifting lifestyles, the food and beverages sector will need to adapt, doubling down on innovation, customer experience, and digital integration. For entrepreneurs and industry stakeholders, the growth of the fast-food segment signals a strategic opportunity, while the underperformance of catering services warrants a re-evaluation of business models.

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