Hospitality
Over 50 companies exhibiting at the ongoing Kenyan Food Event Expo in Nairobi have urged the hospitality industry to embrace innovation and technology to drive growth and enhance the customer experience in the food and beverage sector.
The Expo, which is an annual culinary showcase organized by the Montgomery Group EA that celebrates the diversity and excellence of Kenya’s food scene, features a wide array of activities, including cooking demonstrations, food tastings, and cultural displays.
Suppliers, producers, and service providers at the expo emphasized that adopting new technologies is essential for the industry’s future and competitiveness in the region. “We are thrilled to host the Kenyan Food Event and provide a platform for showcasing the incredible culinary talent and diversity that East Africa has to offer,” expressed Angela Kinyua, Managing Director (MD) of Montgomery Group EA.
“This event is a celebration of our food culture and a testament to the passion and creativity of our chefs and food producers,” she added.
Kinyua highlighted the role of innovations in meeting market demands and increasing revenues for industry players, noting that Kenya has seen a steady growth in restaurants since the pandemic, but needs to leverage innovation and technology to truly advance.
One of the exhibitors (Left) interacting with participants during the Kenyan Food Event 2024 Expo that runs for three days from 3rd to 5th of September at Sarit Centre in Nairobi.
“Kenya has over 3,800 restaurants as of January this year and this number has continued to grow with the return to normalcy after the COVID-19 pandemic. But the numbers compared to what was in 2019 seems to be at a stagnant level and the only way to ensure that we advance our growth is through the utilization of innovations and technologies,” she reiterated.
Kenya’s food production is projected to reach $13 billion by 2026, while beverage sales are expected to reach $3.5 billion. The restaurant delivery market is also poised for significant growth, with a projected Compound Annual Growth Rate (CAGR) of 9.44 percent from 2024 to 2028.
The hospitality industry is one of the top three revenue earners with data from the Economic Survey of 2024 by Kenya National Bureau of Statistics (KNBS). Particularly, the accommodation and food services sector grew by 26 percent in the third quarter of 2023, representing an increase in comparison to 2022, when the sector’s value added was around 17 percent.
On the other hand, Kenyan beverage sales are expected to reach $3.5 billion, growing at an average rate of 2.4 percent year on year. In 2024, the revenue from alcoholic drinks at home is expected to be $3,352 million, with an annual growth rate of 8.03 percent from 2024-2028 while the revenue from non-alcoholic drinks at home is expected to be $5,394 million, with an annual growth rate of 9.43 percent from 2024-2028.
In addition, the restaurant delivery market in Kenya is expected to reach a revenue of $296.20m by 2024. From 2024 to 2028, it is expected to have a CAGR of 9.44 percent, resulting in a market volume of $424.90m by 2028