Despite being more expensive and containing more saturated fats, butter outclassed margarine during the review period. Middle income households prefer butter as a spread as well as for cooking and baking.
Bidco Africa Ltd lost value share margarine and spreads in 2021 and now ranks third. The company’s brands Biddy's Margarine, Gold Band and Veebol Patry Margarine are all losing value share thanks to a drop in demand from consumers as well as some distribution and availability issues.
Supermarkets are the main channel for purchasing butter and spreads due to the various brands’ availability in this channel as well as lower prices when compared to other grocery retail channels. However, during 2020 and 2021 sales at supermarkets decreased as a result of the restrictions on movement that were instituted to curb the spread of COVID-19.
Players will have to consider distribution, availability and pricing of butter and spreads to gain value share during the forecast period. Although there is a growing middle class in Kenya, most consumers are still impoverished and therefore adoption of packaged food products such as butter, margarine and spreads are still relatively low.
E-commerce is anticipated to continue increasing in popularity amongst the middle income households in Kenya. Online retailing grew in popularity in 2020 mainly due to the stay at home rules and containment measures put in place by the Ministry of Health to control the spread of COVID-19.
Over the forecast period, butter and spreads is expected to see moderate constant retail value sales growth as consumers prioritise healthier food choices. Initially, consumers were only wary of contracting lifestyle diseases such as hypertension, heart disease and diabetes, but the COVID-19 pandemic pushed consumers to furthering a healthier lifestyle owing to the discovery that people with underlying health conditions are at a higher risk of dying from the virus.
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Understand the latest market trends and future growth opportunities for the Butter and Spreads industry in Kenya with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Butter and Spreads research and analysis database.
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