Forecast: Value Added of Food, Beverages and Tobacco in South Africa

The value added of the Food, Beverages, and Tobacco sector in South Africa exhibited minor fluctuations from 2013 to 2023. In 2013, the value stood at 2.57, increasing moderately to 2.67 in 2014 and remaining relatively steady until 2017. Following a slight decline from 2018, the value consistently decreased year-on-year, reaching 2.57 in 2023.

Over the past two years, from 2022 to 2023, the sector experienced a consistent decline at a rate of 0.36% each year. The compound annual growth rate (CAGR) over the last five years, from 2019 to 2023, shows an average annual decrease of 0.27%.

Forecasts from 2024 to 2028 predict a continued decline, with the value anticipated to fall to 2.52 by 2028. The forecasted five-year CAGR is -0.3%, tallying a projected overall decrease of 1.5% over this period.

Future Trends to Watch:

- Technological advancements in food processing and packaging.

- Shifts in consumer preferences towards healthier and organic products.

- Potential impacts of regulatory changes on the sector.

- Economic influences such as inflation and supply chain disruptions.

- Increased focus on sustainability and environmentally friendly practices.