Industry revenue of “retail trade in food, beverages and tobacco in specialised stores“ in South Africa 2011-2023

Over the years South Africa’s food and beverage retail sector has benefitted immensely from its robust indigenous manufacturing capabilities, which provide it with high quality and niche products. Contributing in no small measure to the success of this industry are the country’s advanced capabilities in agriculture and agro-processing, thereby making South Africa the leading food and beverage market in the entire African continent. It also has the third highest number of tobacco users in Africa. Total revenues of retail trade in food, beverages and tobacco in specialised stores are expected to increase from 5.5 billion U.S. dollars in 2016 to around 6.5 billion U.S. dollars in 2023.

One of the reasons for this tepid growth is a drastic reduction in the number of people consuming tobacco products in the country. In fact according to a 2018 Statista survey, as many as 68% of the respondents did not consume cigarettes/tobacco regularly. Another reason is the country’s sluggish economic growth, which has affected the retail sector as a whole.