Savoury Snacks in South Africa

PROSPECTS

Convenience and health trends continue to drive growth

Investment from major savoury snacks players in innovation and new product development continued to fuel growth in 2019. Convenience and health have become two key areas of innovation for manufacturers, with players reformulating many of their products to create healthier varieties.

Premiumisation and price inflation fuelling value sales

Rising sales of higher-priced items such as other savoury snacks (biltong or dried meat) and nuts, seeds and trail mixes contributed to value growth in savoury snacks over the review period. Other savoury snacks in South Africa comprises biltong meat, which is salted and dried.

Informal traders pose significant threat to sales

Although supermarkets continue to lead distribution, a large quantity of puffed snacks and crisps are re-sold by vendors in streets, buses and trains throughout South Africa. Products from companies such as Truda Foods, Frimax Foods and Champ Food are only available in wholesalers and can therefore be sold in independent small grocers or by street hawkers/vendors.

COMPETITIVE LANDSCAPE

Strong marketing and promotions help Simba maintain leading position

Simba continued to lead savoury snacks in 2019, despite seeing a marginal fall in sales share due to growing competition from cheaper alternatives. The company’s leading position can be attributed to its regular introduction of new product launches, as well as popular price promotions for its Simba potato chips brand.

Brands continue to lead sales, despite growing private label competition

Compared with other packaged food categories, private label sales are fairly limited within savoury snacks in South Africa. Nevertheless, retailers continue to expand their ranges and gain sales share.

Snacking trend boosting demand for potato chips

Potato chips continues to post healthy value growth in savoury snacks in South Africa, with demand being fuelled by the growing snacking trend among consumers, as well as affordable prices and widespread aggressive promotions and marketing campaigns. Potato chips are highly popular snacks for parties and celebrations and continue to become more widely available thanks to the expansion of modern retailers.

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