South African Food and Beverages industry's income augmented by 16.5 per cent to reach R 6.9 Billion in the final quarter of 2006.
South African Food and Beverages industry's income augmented by 16.5 per cent to reach R 6.9 Billion in the final quarter of 2006 compared to 2005, showed the Statistics of South Africa. Food sales income that rose by 17.2 per cent remained the largest contributor in this growth, as per the news published on Sunday Times.
In African continent, South Africa has most advanced economy, with ample supply of natural resources. Statistically, the country has adequate resources of food to feed its inhabitants. South Africa has also a high per capita income in contrast to its adjacent states.
Fast food industry growth, quick urbanisation rate and arrival of global processing companies are other main reasons behind the growth in the food and beverages income in South Africa.
Also the costs of Food and beverages are affordable in South Africa. The main portion of customer spending (19%) goes to non-alcoholic beverages and food. Last year customers' spending on non-alcoholic beverages and food were US$ 25.6 Billion. The expenditure on Fresh food is also very high in the country and is projected to continue to rise.
As per a research analyst at RNCOS, "South African customers are continuously developing westernized lifestyle and sophisticated taste. This trend has spurred growth in the demand for packaged and processed foods plus health and weight loss foods. Also due to increased focus on careers, lesser time for meal preparation, and convenience to cooking, richer customers are increasingly looking for ready-made meals in this country".
South Africa has a growingly diversified food-retail market. Superstores are capturing South African retail food market's most active sector - the speedily increasing urban regions where incomes are superior. Even as the supermarket chain store has enhanced slightly, the main growth has been seen in stand-alone forecourt stores, convenience stores, and franchises that sell fast food and convenience meals. These are the best venues for imported goods, and give more accessibility and convenience to a country increasingly on the go.
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