South Africa Fast Food Market Outlook-2026
The South Africa fast food market size was valued at $2.7 billion in 2018 and is expected to reach $4.9 billion by 2026, registering a CAGR of 7.9% from 2019 to 2026. South Africa is the largest foodservice market in the sub-Saharan Africa with a large and highly competitive hospitality industry. Despite negative impacts on several economic parameters of the country, the food service industry is expected to experience considerable growth during the forecast period. Similarly, the country has a large number of domestic as well as international restaurant chains; thereby, fueling the growth of the fast food segment. This is attributed to increase in demand for different types of fast food products from the target customers. According to Southern Africa Food Lab, over the past five years, there has been an increase in consumption of convenience food due to rise in availability of take-away vendors. As per their prediction, fast food items such as hamburgers, koftas, fried chips, and vetkoek, are expected to gain immense popularity and are anticipated to be consumed on a regular basis as part of the daily diet. Moreover, easy availability of fast food products is anticipated to influence the cooking practices, that is, decrease the frequency of home cooking; thereby, increasing the dependency on fast food products.
Urbanization is one of the major factors that drives the demand for fast food products in South Africa. More than 60% of South Africa’s population lives in urban areas. Out of which, more than half of the population relies on fast food products, owing to increase in rate of employment and adoption of busy lifestyle. This has resulted in an increase in number of transactions from fast food chains in recent decades. McDonald’s Corporation, one of the key players in the fast food industry states that South Africa was one of the most successful markets in 2014. A record was set when South Africa opened 30 restaurants in just 23 months.
The South Africa fast food market is segmented on the basis of product type, age group, and distribution channel. Based on product type, the South Africa fast food market is divided into processed chicken, burger, processed fish, pizza, sandwich, and others. By age group, it is categorized into below 18 years, 20–35 years, and above 35 years. Based on distribution channel, the South Africa fast food market is bifurcated into on-trade and online channel.
By Product Type
Processed Chicken segments dominates the South Africa Fast Food market and is expected to retain its dominance throughout the forecast period.
Based on product type, the South Africa Fast Food market size is segmented into processed chicken, burger, processed fish, pizza, sandwich, and others. The processed chicken segment is the largest fast food category among all other fast food product types, which is attributed to the rise in demand for various types of chicken products. Some of the key players in the processed chicken segment such as KFC, Chicken Licken, and Nandos, have witnessed a significant growth, in terms of value, over the past five years. The surge in demand for processed chicken products has also resulted in the entry of new players in this sector. For instance, Popeyes Louisiana Chicken, an American multinational chain, opened its first three stores in Johannesburg. Thus, rise in demand for processed chicken products is creating lucrative opportunities for the South Africa Fast Food market growth.
By Age Group
20–35 years old age group segment is projected to grow with fastest CAGR during the forecast period
Based on age group, the South Africa Fast Food market is segmented into below 18 years old, 20–35 years old , and above 35 years old. The 20–35 years segment accounts for the highest South Africa fast food market share. Millennials have altogether a different kind of perception on fast food consumption as they generally seek factors such as food quality, customization, and ethics. These factors are readily provided by established fast food restaurants, whereas traditional quick service restaurants find it difficult to meet such criteria. Some of the key brands such as McDonald’s and Pizza Hut keep on revising their menu so that it appeals to the millennial customers. For instance, McDonald’s added premium smoothies, gourmet sandwiches as well as creative salads to its menu for specifically targeting the millennials.
By Distribution Channel
On - Trade distribution segment dominates the South Africa Fast Food market and is expected to grow with a CAGR of 4.6% during the forecast period
Based on distribution channel, the South Africa Fast Food market is segmented into on-trade stores and online channel. On-trade stores account to higher value share for South Africa fast food market. The fast food operators make the most of it, when they promote or sell food products in their own restaurant premises. They provide counter service (like takeaway place) and offer more customized, freshly prepared and high quality food than traditional QSR (Quick Service Restaurants), facilitating all these in an up scaled and inviting ambience. Moreover, the service provided is of higher efficiency, availing its food products at slightly lower prices than any usual sit-down restaurants. As a result, majority of target customers prefer going to fast food restaurants to experience such services. As of 2016, KFC reported the highest number of outlets in South Africa i.e. 828 outlets.
Key players operating in South Africa fast food industry include Yum Brands Inc., Famous Brands Inc., McDonald’s Corporation, Nando’s Group Holding Ltd., Taste Holding Ltd., Traditional Brands, King Pie Holdings, Burger King, Hungry Lion, Spur Steak Ranches, and others.
Key Benefits for South Africa Fast Food Market:
- The report provides an extensive South Africa Fast Food market analysis of the current and emerging trends, opportunities and South Africa fast food market shares.
- The report provides detailed qualitative and quantitative analysis of the current South Africa fast food market trends and future estimations that help evaluate the prevailing South Africa fast food market demand and opportunity.
- A comprehensive analysis of the factors that drive and restrict the South Africa fast food market growth is provided.
- An extensive South Africa fast food market analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential segments or regions exhibiting favorable growth.
South Africa Fast Food Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Age Group |
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 By Distribution Channel |
|
 Key Market Players | MCDONALD’S CORPORATION, TASTE HOLDING LTD, NANDO'S GROUP HOLDINGS LTD., SUBWAY IP LLC., YUM! BRANDS, PIZZA PERFECT, RESTAURANT BRANDS INTERNATIONAL INC. (RBI), SPUR CORPORATION LTD., FAMOUS BRANDS INC., KING PIE |
Analyst Review
According to the insights of the CXOs of leading companies, South Africa provides numerous opportunities to grow at a faster rate in terms of value sales for various fast food operators. Over the past one-decade, South African customers have gradually shifted their diet to fast food and convenience food, specifically in urban areas.
South African fast food operators consider promotional strategy as one of the key strategies for value sales growth in South Africa. For instance, Burger King, one of the major players in the global fast food market, which entered the South Africa market in 2013, witnessed the most dynamic growth in terms of revenue generation by 2017. The chain had invested heavily in marketing and promotion for its products and services to generate brand awareness. Along with the promotional strategy, some of the key players in the market are introducing new strategies to increase its product offering to cater to the requirements and preferences of the target customers. In addition, the fast food operators are coming up with healthy food products that comprise healthy and clean-labelled ingredients due to increase in number of health-conscious consumers. These factors are expected to boost the growth of the market.
Furthermore, several key fast food operators in the industry consider online platform as one of the effective tools to promote and sell its products to the target customers due to surge in internet penetration. As of 2016, out of the 55.2 million population of South Africa, 28.6 million reported to have been using internet.
The forecast period of South Africa Fast Food market report is from 2019 to 2026.
The South Africa Fast Food market was valued at $3.7 billion in 2019
The report covers detailed profiling of key companies operating in the market including Yum Brands Inc., Famous Brands Inc., McDonald’s Corporation, Nando’s Group Holding Ltd., Taste Holding Ltd., Traditional Brands, King Pie Holdings, Burger King, among others
Top companies holding significant market share are Yum Brands Inc., Famous Brands Inc., McDonald’s Corporation, Taste Holding Ltd., Burger King, etc
Pizza, and Sandwich segments of the report is expected to growth at a healthy CAGR during the forecast period
The 20–35 segment accounts for the highest market share in the age group segment for the South Africa fast food market.
"South African consumers have been enduring an increasingly stressful and time-starved lifestyle. This has created burgeoning demand for food products such as take-away food items and readily available fast food products."
Processed Chicken holds maximum revenue share in South Africa Fast Food market in 2019.
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