Market Trends of South Africa Processed Meat Industry
This section covers the major market trends shaping the South Africa Processed Meat Market according to our research experts:
Growth of Foodservice Restaurants Increased Meat Consumption
Owing to the rising presence of international consumers, the food service market is primarily driven by the increasing frequency of dining out amid time-pressed schedules and the growing influence of cross-cultural dietary patterns. The growth of food service is evident in the fact that the market for processed meat is expected to witness growth, citing offerings in different formats to lure more domestic consumers and international tourists. Additionally, as a result of globalization, urbanization, and the increasing presence of the middle class, as well as the increasing participation of women in the labor force, South Africa is experiencing rapid growth in quick service restaurants (QSR) such as KFC, Steers, Wimpy, Debonairs, and others. This has led to an increase in the consumption of fast food and ready-to-eat meals, which in turn is driving the demand for processed meats in the country.
As for food franchises in South Africa, over 100 companies are listed in the Franchise Association of South Africa (FASA). According to trade economics data, South Africa is proving a very successful market for foreign food service franchises as well, where several international brands have taken advantage of the country's average retail growth of 3 to 5% over the past few years by investing heavily in the segment as a part of expansion or unveiling plans to do so in the future.
Poultry is the Most Preferred Type of Processed Meat
South Africa is the largest regional exporter of processed meat. The southern African countries Botswana, Lesotho, Malawi, Mozambique, Namibia, the Seychelles, Swaziland, Zambia, and Zimbabwe suspended imports of processed meat from South Africa, which hampered the processed meat industry. Processed chicken meat is expected to perform well, mainly due to the rising prices of other meats and the strong popularity of chicken meat in South Africa. Chicken meat is widely consumed in the country; according to the USDA Foreign Agriculture Service, the domestic consumption volume of broilers increased by 5 metric tons in 2021. Also, demand for meat products has been influenced by the variety, prices, and services that retail food firms have offered to their customers.
