Other Dairy in South Africa

PROSPECTS

Convenient other dairy products drive growth

Growth in chilled and shelf stable desserts can be attributed to the popularity of shelf stable dairy desserts, due to their lower unit price and lack of need for refrigeration, with around 30% of households in South Africa still lacking fridge-freezers at the end of the review period. Shelf stable products also continue to be allocated more shelf space in retailers, with Danone Southern Africa’s strong brand Ultra Mel custard dominating this category.

Unit prices increase in 2018

Other dairy saw below-inflation unit price growth in current terms in 2018. This was partly due to the decline in the cost of raw milk, due to surplus production, but was also linked to growing price competition and the strength of private label in many categories, which saw manufactures largely unable to increase unit prices, absorbing costs such as the increase in VAT.

Some categories benefit from a healthy image

Segments within other dairy are expected to experience mixed performances. Soy desserts is expected to see growth, benefiting from the healthy image of soy, the widening availability of more affordable options in supermarkets and growing awareness of lactose intolerance.

COMPETITIVE LANDSCAPE

Nestlé leads other dairy in 2018

Nestlé South Africa continued to lead other dairy in value terms in 2018. Its strength was chiefly due to wide brand awareness and distribution for Nestlé Cremora, which held a strong lead in coffee whiteners.

National Brands gains share

National Brands recorded the strongest value share increase of two percentage points in 2018, cementing its second position. Its Ellis Brown brand in coffee whiteners is available in a wide range of affordable formats.

Danone Southern Africa claims third position

Danone Southern Africa held third position in other dairy in 2018, thanks to its popular Ultra Mel brand, which dominated shelf stable desserts and accounted for a notable value share in overall other dairy.

Files are delivered directly into your account within a few minutes of purchase.