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The increasing powdered milk market in the country has been a major challenge for the UHT milk market here, which can be a potential threat in future. High growth rate makes the UHT milk market one of the most attractive industries for new companies in South Africa; however, the lack of capital and expertise makes their entry tough. Rivalry in the industry is extremely high due to the presence of large number of players and private label brands.
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UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry SkimmedUHTMilktoWitnessHighestGrowthby2019 - Semi PersistenceMarketResearch SouthAfricaUHTMilkMarketWillReach US$1185.3millionin2019:Persistence MarketResearch 1 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 PersistenceMarketResearchReleasedNewMarketReport“SouthAfricaMarketStudyon UHTMilk:MarketShareofSemiSkimmedUHTMilktoIncreaseby2019”,theSouth AfricanUHTmilkmarketisexpectedtogrowataCAGRof11.2%during2014to2019,toreachanestimatedvalueofUSD1185.3millionin2019. BrowsethefullSouthAfricaMarketStudyonUHTMilk:MarketShareofSemiSkimmedUHT MilktoIncreaseby2019reportathttp://www.persistencemarketresearch.com/market-research/south-africa-uht-milk-market.asp SouthAfricaisamajordairy-consumingcountryintheAfricanregionwhereliquidmilk accountsforapproximately60%ofthetotaldairyproductconsumption.Thepasteurizedmilkmarketinthecountryhasbeendeclining,whereastheUHTmilkmarketisgrowingatarapidpace.TheUHTmilkmarketinthecountryisexpectedtoexhibitadoubledigitCAGRduring2013-2019.TheincreasingacceptabilityofUHTmilkamongalleconomicclassesofthecountryhasbeenamajordriverforthegrowthofthismarket. WholeUHTmilkdominatestheproductsegmentsduetotheinclinationofSouthAfricans towardsfat-richproducts;however,itsshareisexpectedtodeclineduringtheforecastperiodduetorisinghealthconcernsofthepopulation.Amongprovinces,GautengdominatedUHTmilksalesinSouthAfrica;however,withrisingurbanizationinotherprovinces,itsshareisexpectedtodecreaseduringtheforecastperiod. UrbanizationinSouthAfricahasbeenontherise.Ithasbeenindirectlydrivingthegrowthof theUHTmilkmarketbypushingthebulkpurchaseofgroceries,includingUHTmilk.AccordingtotheSouthAfricanInstituteofRaceRelations(SAIRR),two-thirdoftheSouthAfricanpopulationlivedinurbanareasin2011,upfrom52%in1990.Polokwane,Rustenburg,Vanderbijlpark,Nelspruit,andEkurhuleniarethefastestgrowingcitiesinthecountry.Thelong-lifebenefitofUHTmilkhashelpedittobecomeapartofothernon-perishablegroceries.UHTmilkisalsobecomingpopularamongthelow-incomepopulationasitisnotveryexpensiveanddoesnotgetspoiledincaseofmajorpowerfailures. TheabundanceofanimalfeedandfodderinSouthAfricahelpsthedairycompaniesinthe countrytomaintainstabilityinproductioncostofdairyproductsincludingUHTmilk.Thisinturnhelpsthecompanyinmaintaininganeffectivedairychainandstableretailpricesoftheseproducts..Thepresenceofalargenumberofanimalfeedcompaniespromotesthesmoothsupplyoffeedtotheanimalfarms.TheSouthAfricangovernmenthasannouncedthestartofethanolproductioninthecountryfromfeedstuff;however,thisisnotexpectedtohamperthefeedstocksupplytoanimalfarmsasthecountry’ssurplussugarcaneproductioncanbeusedforethanolproduction. 2 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 ThepasteurizedmilkmarketinSouthAfricahasbeendecliningoverthepastfewyearsand isexpectedtofollowthistrendinthefuture.Rapidurbanizationhasbeenobservedtobeakeyreasonforthisdecline.However,thisisfavorablefortheUHTmilkmarketinthecountry.DairycompaniesareincreasingtheirUHTmilkproductioncapacitiestocashinontheopportunity.Severalotherdairyprocessorsplantoenterthismarketaswell.Forinstance,CloverIndustriesacquiredtheUHTmilkbusinessofDairyBellein2014.WoodlandsDairy,ontheotherhand,increaseditsUHTmilkpackingcapacityfrom6,000litersperhourto15,000litersperhourin2014. ThekeyUHTmilkcompaniesinSouthAfricaincludeParmalatSA(Pty)Ltd.,CoegaDairy, CloverIndustriesLtd.,WoodlandsDairy,andDewfreshProducts(Pty)Ltd. BelowisthesegmentationcarriedoutbyPersistenceMarketResearchforSouth AfricamarketstudyonUHTMilk: MarketShare(2012and2019)byProduct Whole Semi-skimmed Skimmed MarketShare(2012and2019)byDistributionChannel Supermarkets/Hypermarkets Independentsmallgrocers Foodanddrinkspecialists Others MarketShare(2012and2019)byProvince Gauteng WesternCape KwaZulu-Natal EasternCape Others MarketHistory: 3 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 TheSouthAfricanUHTmilkmarketismainlydrivenbyitsincreasingacceptabilityamongallclassesand theabilityofcompaniestomaintainstableretailprices.UHTmilkcompaniesdistributetheirproducts throughlarge(suchassupermarketsandhypermarkets)andsmallretailformats(suchasconvenience storesandindependentretailers),wheretheformergeneratebiggervolumesales.Themarketishighly concentratedatthetop.However,itischaracterizedbythepresenceoflargenumbersofprivatelabel brandsofferedunderthebrandingofretailstores.Theschoolfeedingprogramhasbeenemergingasone ofthekeyareasfortheUHTmilkmarketduetotheincreasingnumberofchildrenandschoolsoptingfor it. TheincreasingpowderedmilkmarketinthecountryhasbeenamajorchallengefortheUHTmilkmarket here,whichcanbeapotentialthreatinfuture.HighgrowthratemakestheUHTmilkmarketoneofthe mostattractiveindustriesfornewcompaniesinSouthAfrica;however,thelackofcapitalandexpertise makestheirentrytough.Rivalryintheindustryisextremelyhighduetothepresenceoflargenumberof playersandprivatelabelbrands. UrbanizationinSouthAfricahasbeenontherise.IthasbeenindirectlydrivingthegrowthoftheUHTmilk marketbypushingthebulkpurchaseofgroceries,includingUHTmilk.AccordingtotheSouthAfrican InstituteofRaceRelations(SAIRR),two-thirdoftheSouthAfricanpopulationlivedinurbanareasin2011, upfrom52%in1990.Polokwane,Rustenburg,Vanderbijlpark,Nelspruit,andEkurhuleniarethefastest growingcitiesinthecountry.Thelong-lifebenefitofUHTmilkhashelpedittobecomeapartofothernon- perishablegroceries.UHTmilkisalsobecomingpopularamongthelow-incomepopulationasitisnot veryexpensiveanddoesnotgetspoiledincaseofmajorpowerfailures. TheabundanceofanimalfeedandfodderinSouthAfricahelpsthedairycompaniesinthecountryto maintainstabilityinproductioncostofdairyproductsincludingUHTmilk.Thisinturnhelpsthecompany inmaintaininganeffectivedairychainandstableretailpricesoftheseproducts.Thepresenceofalarge numberofanimalfeedcompaniespromotesthesmoothsupplyoffeedtotheanimalfarms.TheSouth Africangovernmenthasannouncedthestartofethanolproductioninthecountryfromfeedstuff;however, thisisnotexpectedtohamperthefeedstocksupplytoanimalfarmsasthecountry’ssurplussugarcane productioncanbeusedforethanolproduction. TheunorganizedrawmilkmarketindevelopingcountriesisoneoftherestraintsfortheUHTmilkmarket, asrawmilkispreferredbyconsumersduetotheirperceptionofitshighnutritionalvalueandfreshness. Themarketishighlyconcentratedatthetop.However,itischaracterizedbythepresenceoflarge numbersofprivatelabelbrandsofferedunderthebrandingofretailstores. 4 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 Intermsofvolume,thedemandforUHTmilkinSouthAfricagrewfrom601.7millionlitersin2010to XXXXmillionlitersin2013ataCAGRofXX%.Intermsofrevenue,theUHTmilkmarketgrewfromUSD XXXXmillionin2010toUSDXXXXmillionin2013ataCAGRofXX%.Intermsofvolume,thedemand forUHTmilkinSouthAfricaisexpectedtogrowfromanestimatedXXXXmillionlitersin2014to XXXXmillionlitersby2019ataCAGRofXX%.Intermsofrevenue,themarketisexpectedtogrow froman estimatedUSDXXXXmillionin2014toUSD1,185.3millionby2019ataCAGRofXX%. TableofContent Chapter1Preface 1.1ReportDescription 1.2ScopeandDefinition 1.2.1Productsegmentscoveredinthereport 1.3ResearchMethodology Chapter2MarketSynopsis Chapter3GlobalUHTMilkMarket 3.1Introduction 3.2UHTMilkMarketSizeandForecast Chapter4SouthAfricaUHTMilkMarket 4.1IndustryOverview 4.1.1Introduction 5 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 4.1.2Strength,Weakness,Opportunity,andThreat(SWOT)Analysis 4.1.2.1Strengths 4.1.2.1.1UHTmilkisapopularmilkcategoryamongthetwomajorpopulation classes-highandlowermiddle 4.1.2.2StabilityinretailpricesofUHTmilk 4.1.2.3Weaknesses 4.1.2.3.1DominanceofprivatelabelbrandsintheUHTmilkmarketiscreating obstaclesfortheorganizedplayers 4.1.2.4Opportunities 4.1.2.4.1Switchingofpasteurizedmilkconsumerstolong-lifeversions 4.1.2.4.2Increasingnumberofchildrenunderschoolfeedingprogram 4.1.2.5Threats 4.1.2.5.1Growingmarketforpowderedmilk 4.1.3Porter’sFiveForcesAnalysis 4.1.3.1BargainingPowerofSuppliers 4.1.3.2BargainingPowerofBuyers 4.1.3.3ThreatofNewEntrants 6 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 4.1.3.4ThreatofSubstitutes 4.1.3.5DegreeofCompetition 4.1.4UHTMilkMarketIndustryTrends 4.1.4.1Semi-skimmedUHTmilkiswitnessinganincreasingdemandinSouthAfrica 4.2UHTMilkMarketSizeandForecast 4.3UHTMilkMarketbyProduct 4.4UHTMilkMarketbyDistributionChannel 4.5UHTMilkConsumptionAnalysisbyProvince Chapter5CompetitiveScenario 5.1UHTMilkMarketSharebyCompany 5.1.1Marketsharebyvalue 5.2ProductPositioning 5.3CompetitiveBenchmarking Chapter6CompanyProfiles 6.1ParmalatSA(Pty)Ltd. 6.1.1Companyoverview 7 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilk SkimmedUHTMilktoWitnessHighestGrowthby2019 Industry - Semi 6.1.2Productsandsegments 6.1.3Financialperformance 6.1.4Strategicdevelopment 6.2CoegaDairy 6.2.1Companyoverview 6.2.2Productsandsegments 6.2.3Financialperformance 6.2.4StrategicDevelopment 6.3CloverIndustriesLimited 6.3.1Companyoverview 6.3.2Productsandsegments 6.3.3Financialperformance 6.3.4Strategicdevelopment 6.4WoodlandsDairy 6.4.1Companyoverview 6.4.2Productsandsegments 8 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilk SkimmedUHTMilktoWitnessHighestGrowthby2019 Industry - Semi 6.4.3Financialperformance 6.4.4Strategicdevelopment 6.5DewfreshProducts(Pty)Ltd. 6.5.1Companyoverview 6.5.2Productsandsegments 6.5.3Financialperformance 6.5.4Strategicdevelopment ListofTables TABLE1SouthAfricaUHTmilkmarketsnapshot,2013and20198 TABLE2GlobalUHTmilkmarket,2010–201310 TABLE3GlobalUHTmilkmarket,2014–201911 TABLE4SouthAfricaregisteredproducer-distributorsandmilkbuyersperprovince,March 2012 TABLE5SouthAfricaUHTmilkmarket,2010–201320 TABLE6SouthAfricaUHTmilkmarket,2014–201920 TABLE7Productpositioningofmajorcompanies,201325 9 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 ListofFigures FIG.1SouthAfricaUHTmilkmarket:Porter’sfiveforcesanalysis FIG.2SouthAfricaeconomicgrowthcomparisonwiththeglobalregions,2010–2015(%GDP growth) FIG.3SouthAfricafoodinflation,2014(%) FIG.4SouthAfricaUHTmilkmarketshare,byproduct,byvalue FIG.5SouthAfricaUHTmilkmarketshare,bydistributionchannel,byvalue FIG.6UHTmilkmarketshare,byprovince,byvalue FIG.7Marketshare,bycompany,byvalue,2013 FIG.8CompetitivebenchmarkingofSouthAfricaUHTmilkmarket FIG.9ParmalatS.p.A.’snetrevenueandnetincome,2011–2013(USDmillion) FIG.10CloverIndustriesLimited’srevenueandprofit,2012–2014(USDmillion) AboutUs: PersistenceMarketResearchisaglobalmarketresearchfirmspecializing-syndicatedresearch,customresearch,andconsultingservices AtPersistenceMarketResearch(PMR),weareinthebusinessofacceleratingyourbusiness.Asafull- servicemarketresearchfirm,westandcommittedtobringingmoreaccuracyandspeedtoyourbusiness decisions.Fromready-to-purchasemarketresearchreportstocustomizedglobalresearchsolutions,our engagementmodelsarehighlyflexiblewithoutcompromisingonourdeep-seatedresearchvalues. Brieflystated,ourmissionistogiveyouaccesstoforecastsandtrendsanalysesthatputyouonthe pathto profitability. 10 PersistenceMarketResearch
UHTMilkMarket-SouthAfricaStudyonUHTMilkIndustry-Semi SkimmedUHTMilktoWitnessHighestGrowthby2019 PMR’sServicesGoBeyondGleaningData MostenterprisesbelievethatITanddatabasesareenoughtomakeanaccuratedecision.Whilewedo notdisputethat,considerthis:Howlongdoesittaketomakeanaccurate decision?Westrivetodeliverbothevenwithdemandingdeadlines. andstrategicmillion-dollar ContactUs: AddieThomes 305Broadway 7thFloor,NewYorkCity, NY10007,UnitedStates, USA-CanadaTollFree:800-961-0353 Email:sales@persistencemarketresearch.com Web:http://www.persistencemarketresearch.com 11 PersistenceMarketResearch