Dairy products and alternatives in 2024: The big picture
2024 remains a challenging financial year for consumers in South Africa, due to high levels of food inflation across the board. This is being further compounded by higher interest rates to combat the elevated level of inflation.
Key trends in 2024
Value for money remains a key driver of dairy products and alternatives in South Africa. In addition, many of these products are generally considered essentials in the country, due to the high level of nutritional value they offer, including vitamins and minerals.
Competitive Landscape
Lactalis SA (Pty) Ltd retains its overall leadership of dairy products and alternatives in South Africa. It is supported by its dynamic portfolio across a number of categories, along with its longstanding reputation for quality.
Channel developments
2024 is witnessing ongoing cost-of-living pressures, resulting in further changes to how consumers shop. South Africans continue to shift away from weekly to monthly shopping trips to large supermarkets, hypermarkets, or discounters, complemented by smaller top-up purchases on a weekly basis where needed.
What next for dairy products and alternatives?
South African consumers will likely remain under financial strain for an extended period, with prudent spending becoming commonplace for many, as it will take time for unemployment levels to decline and household budgets to stabilise. This will force many to opt for more affordable brands or private label, which will further cement the latter’s position by offering value for money, in addition to improved quality levels.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in South Africa report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in South Africa?
- Which are the leading brands in Dairy Products and Alternatives in South Africa?
- How are products distributed in Dairy Products and Alternatives in South Africa?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in South Africa?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in South Africa
Dairy products and alternatives in 2024: The big picture
Key trends in 2024
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in South Africa
KEY DATA FINDINGS
Affordability constraints hamper full growth potential of baby food
Volume sales of milk formula decline as prices rise
Manufacturers innovate to keep pace with changing consumer preferences
Affordability remains leading priority for consumers struggling financially
Milk formula set to experience further challenges from promotion restrictions
Rising demand for snacking expected to drive growth of other baby food
Butter and Spreads in South Africa
KEY DATA FINDINGS
High unit prices for butter result in consumers waiting for product specials
Overall retail volumes decline, but butter is one of the least impacted dairy products
Clover SA wins court case over misleading labelling, but Siqalo Foods remains category leader
Gazetted draft expected to impact butter and spreads
Private label set to gain further share in the coming years
Supermarkets to retain position as dominant distribution channel
Cheese in South Africa
KEY DATA FINDINGS
Pack size and special offers remain key drivers of cheese sales
Lactose free offerings available at most retailers, but price remains a challenge
Price and quality of private label cheese offerings surpass heritage brands
Input costs for cheese production expected to hinder growth potential
Rising demand for premium cheese to be maintained by affluent consumers
Large investments predicted to increase medium-term cheese production
Drinking Milk Products in South Africa
KEY DATA FINDINGS
Fresh milk volumes negatively impacted by load shedding
Strong shift away from fresh milk to shelf stable format continues
Private label remains popular among consumers and manufacturers
Improving access to stable power supply may result in higher milk yields
El Niño weather pattern projected to increase input costs for dairy farmers
Private label to retain its leading position based on competitive pricing
Yoghurt and Sour Milk Products in South Africa
KEY DATA FINDINGS
Sour milk products remains strongest performer in the category
Diversity of Danone’s products provides stable growth
Small-scale dairy producer awarded yoghurt accolade via innovation
Strong consumer awareness of health benefits associated with yoghurt set to mitigate strong declines
Tempered growth for sour milk products in the medium to long term
Lactose free offerings projected to expand
Other Dairy in South Africa
KEY DATA FINDINGS
Limited innovation due to lower demand for non-essential products
Dairy desserts continue to struggle, based on high cost
Competitive landscape of other dairy remains fragmented
Health and wellness trend expected to drive product innovation
Aligning consumer preferences and product offerings will be essential
Home cooking and baking to prevent significant declines in other dairy
Plant-Based Dairy in South Africa
KEY DATA FINDINGS
Majority of sales driven by plant-based milk, but other formats are growing
Plant-based dairy begins to target wider consumer base
High unit prices prevent substantial penetration of plant-based dairy
Clear labelling expected to be a focal point for manufacturers
Concerns over reports of plant-based dairy’s lack of nutritional value
Private label innovation likely to occur
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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