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South Africa Food & Drink Q2 2019

South Africa Food & Drink Q2 2019

Key View:

South Africa's food market presents opportunities for convenience and premiumisation as consumers becomeincreasingly time-poor, opting for easy-to-cook meal options and healthy snack food options. We expect the premiumisation trendto play out in the alcoholic drinks segment over our medium-term forecast period as evidenced by the declining per capita beerconsumption. Consumers will increasingly drink less but spend more on premium alcohol product over our forecast period. Ourforecast for food and non-alcoholic drinks spending is 9.1% in 2019, up from an estimated 7.1% in 2018. Looking ahead we forecastspending to grow at an annual average rate of 8.3% over the 2019-2023 period. One future area of potential opportunity is aConstitutional Court ruling in September 2018 that effectively decriminalised the private use of cannabis in individuals' own homesin South Africa. This could open the way for cannabis-infused products over the long term, with Distell Group already agreeing todistribute hemp-based beer. The industry would need further legalisation measures, but is an area to watch for food and drinkcompanies.

Key View
Food & Drink SWOT
Industry Forecast
Industry Risk/Reward Index
Sub-Saharan Africa Food & Non-Alcoholic Drinks Risk/Reward Index: Ghana Climbs, Risks Remain High
SSA Alcoholic Drinks Risk/Reward Index: South Africa Most Attractive, Rewards Push Cameroon Higher
Market Overview
Mass Grocery Retail
Competitive Landscape
Company Profile
Illovo Sugar
Pick N Pay
Pioneer Foods
Tiger Brands
South Africa Demographic Outlook
Food & Drink Glossary
Food & Drink Methodology

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