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BMI View: South Africa's food and drink industry will remain hampered by the
country's economic downturn in 2016. The consumer outlook will be bleak over
this period stemming from rising food prices, which will weigh on household
spending. We believe industry players will diversify their product offerings
into more value-added segments in order to capture the more cash-strapped
consumers switching out of mainstream categories.
Key Trends & Industry Developments
-Rising food prices will weigh on household spending over 2016; however, we have
a positive outlook on food producers that diversify product offerings to better
suit the weakening consumer outlook.
-Soft drink sales will be volatile to new industry risks presented by the
ongoing economic headwinds, as well as the proposal of a tax on sugary drinks in
-Retailers looking to expand in the local market will primarily focus on
targeting the lower-income consumer through convenience store formats located in