Total income generated by the food and beverages industry increased by 2.8% in 2018 compared with 2017, according to data released by Statistics South Africa.
The largest annual growth rate in December 2018 was seen in restaurants and coffee shops, which contributed 11% and 5.6 percentage points respectively.
"In December 2018, total income increased by 5.9% year-on-year. Food sales grew by 7%," the official statistics agency said.
While the food and beverages sector showed positive growth, total income for the tourist accommodation industry was flat in 2018 compared to the previous year.
In December 2018, total income for the tourist accommodation industry decreased by 2.9% year-on-year. According to the agency, the types of accommodation that recorded negative year-on year growth in income were caravan parks, camping sites, guest houses and guest-farms.
READ: SA consumer confidence index dips substantially in third quarter
"Income from accommodation decreased by 1.1% year-on-year in December 2018, the result of a 2.5% decrease in the number of stay unit nights sold and a 1.4% increase in the average income per stay unit night sold," Stats SA reported.
The decline in the accommodation and food sector came on the back of low economic growth, which slashed consumer spending. The squeeze on consumers had also been compounded by sustained increases in the price of petrol in 2018, including the impact of the VAT hike.