The food and beverage (F&B) industry in South Africa never sits stil. From shifting consumer habits to evolving technologies and economic headwinds, this sector constantly adapts. And while it’s not without its challenges, the businesses that anticipate change, plan for it, and act early are the ones who’ll thrive. As we move from 2025 into 2026, here are the key trends shaping the future of South African food and beverage, and how you can position your business to make the most of them.

Skip the Queue: Get Funding Now

How Things Currently Look for the Food and Beverage Industry in South Africa

Well, things look good. In spite of our challenges, such as fluctuating economic conditions, supply chain disruptions, increased competition, and infrastructure problems - to name a few - our food and beverage companies are rising above.

The South African food and beverage industry recorded a 4.5% year-on-year increase in real income for May 2025 compared with the same month in 2024.

According to Mordor Intelligence, the South Africa beverages market (including non-alcoholic) has a projected market size of US$ 19.80 billion in 2025, and non-alcoholic beverages are forecasted to grow at 6.84% CAGR from 2025–2030.

‍

You might enjoy: Which Restaurant Trends Are Here To Stay

Food & Beverage Industry Trends 2025–2026

1. Conscious Consumption Is Becoming Mainstream

South Africans are becoming more intentional about what they eat and where it comes from. Sustainability, ethics, and transparency are no longer fringe considerations, they’re buying motivators. Expect continued growth in:

• Plant-based and flexitarian diets: Not everyone’s going vegan, but a recent study at Rhodes University found that 31% follow a vegan diet and 52% were flexitarian.
• Locally sourced ingredients: Consumers want shorter supply chains, supporting local farmers and producers.
• Waste reduction and circularity: From compostable packaging to repurposing by-products, waste-conscious brands are winning hearts.
• Nutritional food: The nutritional food market in South Africa was valued at US$ 35,937.3 million in 2024 and is expected to reach US$ 60,402.6 million by 2031 (CAGR ~7.7%).

For SMEs, this is an opportunity. Transparency, traceability, and sustainability are differentiators, especially when communicated clearly on packaging, menus, and social media.

2. Technology-Driven Convenience

The demand for speed, convenience, and personalisation is pushing technology to the forefront. Businesses investing in digital systems, from point-of-sale integrations and loyalty apps to online ordering, are gaining the upper hand.

Trends to watch include:

• Smart kitchen systems that reduce waste and improve portion accuracy.
• AI-assisted demand forecasting, helping you stock smarter and prevent shortages.
• Delivery partnerships and ghost kitchens, still strong after years of e-commerce growth.

In South Africa, digital transformation doesn’t have to mean high-cost overhauls. Many SMEs are adopting modular tech; affordable tools that grow as they do. It could be as simple as moving off of paper and on to an accounting package, or ERP system. It’s about working smarter, not bigger.

3. Rising Demand for Healthier Indulgence

The “better-for-you” movement isn’t slowing down. Even when treating themselves, consumers want products that balance taste and wellness. Expect to see:

• Natural sweeteners and reduced-sugar alternatives
• Functional drinks with added vitamins, probiotics, or adaptogens
• Low- or no-alcohol beverages continuing their steady rise

F&B SMEs who innovate in this space and offer snacks, meals, and beverages that feel indulgent but deliver nutritional value, will find tremendous market appetite and loyalty.

4. The Premiumisation of Local Experiences

South Africans are proud of home-grown flavours and are willing to spend more on authentic, locally inspired experiences. Restaurants are increasingly using modern spins on African flavours and local ingredients. From microbreweries and artisanal coffee roasters to boutique sauce makers and food trucks, there’s a growing appetite for quality over quantity.

Customers are looking for:

• Locally produced, small-batch goods with a story
• Fresh, seasonal menus that showcase regional ingredients
• Experiential dining: pop-ups, tastings, farm-to-table events

If your brand can create an experience around your offering, you’ll earn repeat business and word-of-mouth marketing that money can’t buy.

5. Managing Margins in a Volatile Economy

Input costs, changes in consumer demand, and currency fluctuations continue to squeeze margins. Smart operators are tightening systems, exploring shared infrastructure, and leveraging alternative funding to stay agile.

SMEs are increasingly using working capital to:

• Upgrade cold storage or backup power
• Diversify product lines for new market segments
• Fund seasonal campaigns or expand into retail channels

Financial flexibility is key to staying ahead. That’s where Merchant Capital’s fast, unsecured business funding comes in, designed to help you act quickly when opportunities arise, without the red tape.

‍

Real success story: Firing Up Growth in the Bar & Restaurant Industry

6. Social Media-Driven Discovery

TikTok and Instagram are reshaping how South Africans discover new food and drink. Visual storytelling is now central to success, and even small businesses can stand out with creative content.

What’s working now:

• Behind-the-scenes videos of food prep and sourcing
• Customer testimonials and “first bite” reactions
• Partnerships with micro-influencers who genuinely love your brand

In a crowded space, authenticity beats gloss. Your story, why you do what you do, can be your strongest marketing asset.

‍

Quick read: 6 Ways to Use Instagram to Turn Your Restaurant Into a Power Player

7. Collaboration and Community

The toughest years taught the industry an important lesson: collaboration keeps you resilient. Co-branding, shared distribution networks, and cross-promotions are on the rise, especially among smaller producers.

Whether it’s a butcher teaming up with a craft brewery or a restaurant featuring a local baker’s desserts, joint ventures are helping SMEs scale faster while building stronger local ecosystems.

Turn F&B Trends into Growth Opportunities

The common thread across these trends is agility - how quickly you can respond to shifts in demand, invest smartly in growth, and keep customers at the heart of every decision.

At Merchant Capital, we understand the unique pressures that face South African Food & Beverage entrepreneurs. Our flexible funding solutions are built around how your business actually earns. It helps you restock faster, upgrade equipment, or launch that new product line when the moment’s right.

If you’re ready to grow your food and beverage business this year and beyond, apply for funding today and let’s make the most of the trends ahead, together.

Ready to Take Advantage of What’s Next?

Apply for business funding from Merchant Capital today.

‍