Market Size of south africa foodservice Industry
|
Study Period | 2017 - 2029 |
|
Market Size (2024) | USD 8.91 Billion |
|
|
Market Size (2029) | USD 17.22 Billion |
|
Largest Share by Foodservice Type | Quick Service Restaurants |
|
|
CAGR (2024 - 2029) | 14.09 % |
|
|
Fastest Growing by Foodservice Type | Cloud Kitchen |
Major Players |
||
|
||
|
*Disclaimer: Major Players sorted in no particular order |
South Africa Foodservice Market Analysis
The South Africa Foodservice Market size is estimated at 8.91 billion USD in 2024, and is expected to reach 17.22 billion USD by 2029, growing at a CAGR of 14.09% during the forecast period (2024-2029).
8.91 Billion
Market Size in 2024 (USD)
17.22 Billion
Market Size in 2029 (USD)
8.12 %
CAGR (2017-2023)
14.09 %
CAGR (2024-2029)
Largest Segment by Foodservice Type
47.60 %
value share, Quick Service Restaurants, 2023
QSRs dominated the segment, with meat-based cuisines gaining traction due to Bahrain's high per capita meat consumption, which was between 60 and 70 kg in 2022.
Largest Segment by Outlet Type
72.62 %
value share, Independent Outlets, 2023
Independent QSRs occupy the largest share owing to the popularity of traditional fast-food dishes, like Bunny Chow and Gatsby.
Fastest-growing segment by Foodservice Type
16.57 %
Projected CAGR, Cloud Kitchen, 2024-2029
Delivery applications, like Mr D Food, UCook, and UberEats, have registered more than a million active users, which acts as a driver for the growth of cloud kitchens in South Africa.
Fastest-growing segment by Outlet Type
14.76 %
Projected CAGR, Chained Outlets, 2024-2029
The growth of this segment is majorly projected by means of the expansion of international brands, like KFC, McDonald’s, and Starbucks, serving thousands of customers daily.
Leading Market Player
17.84 %
market share, Yum! Brands Inc., 2022
Since entering the market in 1971, the company has built a network of about 1,000 restaurants of its major brands in South Africa and has continued to expand over the years.
The rising popularity of food delivery platforms like Mr.D and Uber Eats is boosting the market growth
- Quick service restaurants hold a significant share of the market. During the study period, the quick service restaurants segment is expected to register a CAGR of 7.61% by value. The growth of food delivery services such as Mr. D Food and Uber Eats in South Africa has made it easier for QSRs to reach customers who cannot visit their physical outlets. Mr. D Food controls 30% of the South African food delivery industry, while Uber Eats holds a 25% share. This has increased the ability of QSRs to expand their delivery capabilities and reach more customers. Processed chicken, burgers, processed fish, pizza, and sandwiches, among others, are some of the main fast food items gaining popularity in the South African market.
- FSR holds the second-largest share of the market. In the FSR segment, the Asian cuisine sub-segment is expanding and is projected to register a CAGR of 13.58% by value in the forecast period. South Africa is a diverse country with a multicultural population. This exposure has increased appreciation and demand for Asian flavors and dishes. There has been an increase in migration to South Africa from Asian countries, such as China and India. Indian South Africans comprise around 2.5% of the South African population in 2023, amounting to approximately 1.6 million people. This migration has led to the opening of more Asian restaurants in South Africa.
- Cloud kitchens are projected to register a CAGR of 18.76% by value in the forecast period. Cloud kitchens offer a wide variety of cuisine options to cater to the diverse tastes of South African consumers. Popular cloud kitchens such as Kitchens Dot Com, operating in Johannesburg and Cape Town, and GhostKitchenZA have partnered with established restaurants to provide delivery-only menus under different brand names.
South Africa Foodservice Industry Segmentation
Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.
- Quick service restaurants hold a significant share of the market. During the study period, the quick service restaurants segment is expected to register a CAGR of 7.61% by value. The growth of food delivery services such as Mr. D Food and Uber Eats in South Africa has made it easier for QSRs to reach customers who cannot visit their physical outlets. Mr. D Food controls 30% of the South African food delivery industry, while Uber Eats holds a 25% share. This has increased the ability of QSRs to expand their delivery capabilities and reach more customers. Processed chicken, burgers, processed fish, pizza, and sandwiches, among others, are some of the main fast food items gaining popularity in the South African market.
- FSR holds the second-largest share of the market. In the FSR segment, the Asian cuisine sub-segment is expanding and is projected to register a CAGR of 13.58% by value in the forecast period. South Africa is a diverse country with a multicultural population. This exposure has increased appreciation and demand for Asian flavors and dishes. There has been an increase in migration to South Africa from Asian countries, such as China and India. Indian South Africans comprise around 2.5% of the South African population in 2023, amounting to approximately 1.6 million people. This migration has led to the opening of more Asian restaurants in South Africa.
- Cloud kitchens are projected to register a CAGR of 18.76% by value in the forecast period. Cloud kitchens offer a wide variety of cuisine options to cater to the diverse tastes of South African consumers. Popular cloud kitchens such as Kitchens Dot Com, operating in Johannesburg and Cape Town, and GhostKitchenZA have partnered with established restaurants to provide delivery-only menus under different brand names.
| Foodservice Type | ||||||||||
| ||||||||||
| Cloud Kitchen | ||||||||||
| ||||||||||
|
| Outlet | |
| Chained Outlets | |
| Independent Outlets |
| Location | |
| Leisure | |
| Lodging | |
| Retail | |
| Standalone | |
| Travel |
South Africa Foodservice Market Size Summary
The South Africa foodservice market is experiencing significant growth, driven by the expansion of quick service restaurants (QSRs) and the increasing popularity of food delivery services. QSRs hold a substantial portion of the market, with major players like McDonald's, KFC, and Burger King leading the charge. The rise of platforms such as Mr. D Food and Uber Eats has facilitated greater reach for these establishments, allowing them to tap into a broader customer base. The market is also witnessing a surge in cloud kitchens, which are capitalizing on the growing demand for delivery-only services. These kitchens offer diverse cuisine options, catering to the multicultural tastes of South African consumers. The fast food segment, including processed chicken, burgers, and pizza, continues to gain traction, supported by both international chains and local brands like Chesa Nyama and Chicken Licken.
Full service restaurants (FSRs) are the second-largest segment, with Asian cuisine gaining popularity due to the country's diverse population and increased migration from Asian countries. This has led to a rise in Asian restaurants, contributing to the market's expansion. Cafes and bar outlets are also on the rise, driven by the growing demand for freshly brewed coffee and healthy food options. The market is characterized by a fragmented landscape, with major players like Famous Brands Limited and Yum! Brands Inc. holding significant shares. The entry of national and international players in the QSR segment, coupled with the expanding middle-income group, has further boosted the market. The South Africa foodservice market is poised for continued growth, with cloud kitchens and delivery services playing a pivotal role in shaping its future.
South Africa Foodservice Market Size - Table of Contents
-
1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)
-
1.1 Foodservice Type
-
1.1.1 Cafes & Bars
-
1.1.1.1 By Cuisine
-
1.1.1.1.1 Bars & Pubs
-
1.1.1.1.2 Cafes
-
1.1.1.1.3 Juice/Smoothie/Desserts Bars
-
1.1.1.1.4 Specialist Coffee & Tea Shops
-
-
-
1.1.2 Cloud Kitchen
-
1.1.3 Full Service Restaurants
-
1.1.3.1 By Cuisine
-
1.1.3.1.1 Asian
-
1.1.3.1.2 European
-
1.1.3.1.3 Latin American
-
1.1.3.1.4 Middle Eastern
-
1.1.3.1.5 North American
-
1.1.3.1.6 Other FSR Cuisines
-
-
-
1.1.4 Quick Service Restaurants
-
1.1.4.1 By Cuisine
-
1.1.4.1.1 Bakeries
-
1.1.4.1.2 Burger
-
1.1.4.1.3 Ice Cream
-
1.1.4.1.4 Meat-based Cuisines
-
1.1.4.1.5 Pizza
-
1.1.4.1.6 Other QSR Cuisines
-
-
-
-
1.2 Outlet
-
1.2.1 Chained Outlets
-
1.2.2 Independent Outlets
-
-
1.3 Location
-
1.3.1 Leisure
-
1.3.2 Lodging
-
1.3.3 Retail
-
1.3.4 Standalone
-
1.3.5 Travel
-
-
South Africa Foodservice Market Size FAQs
How big is the South Africa Foodservice Market?
The South Africa Foodservice Market size is expected to reach USD 8.91 billion in 2024 and grow at a CAGR of 14.09% to reach USD 17.22 billion by 2029.
What is the current South Africa Foodservice Market size?
In 2024, the South Africa Foodservice Market size is expected to reach USD 8.91 billion.
