South Africa Uht Milk Market is classified as Food & Beverages, Feed, Paper

The South African UHT milk market is mainly driven by its increasing acceptability among all classes and the ability of companies to maintain stable retail prices. UHT milk companies distribute their products through large (such as supermarkets and hypermarkets) and small retail formats (such as convenience stores and independent retailers), where the former generate bigger volume sales. The market is highly concentrated at the top. However, it is characterized by the presence of large numbers of private label brands offered under the branding of retail stores. The school feeding program has been emerging as one of the key areas for the UHT milk market due to the increasing number of children and schools opting for it.

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.

Urbanization in South Africa has been on the rise. It has been indirectly driving the growth of the UHT milk market by pushing the bulk purchase of groceries, including UHT milk. According to the South African Institute of Race Relations (SAIRR), two-third of the South African population lived in urban areas in 2011, up from 52% in 1990. Polokwane, Rustenburg, Vanderbijlpark, Nelspruit, and Ekurhuleni are the fastest growing cities in the country. The long-life benefit of UHT milk has helped it to become a part of other non-perishable groceries. UHT milk is also becoming popular among the low-income population as it is not very expensive and does not get spoiled in case of major power failures.

The abundance of animal feed and fodder in South Africa helps the dairy companies in the country to maintain stability in production cost of dairy products including UHT milk. This in turn helps the company in maintaining an effective dairy chain and stable retail prices of these products. The presence of a large number of animal feed companies promotes the smooth supply of feed to the animal farms. The South African government has announced the start of ethanol production in the country from feedstuff; however, this is not expected to hamper the feedstock supply to animal farms as the country’s surplus sugarcane production can be used for ethanol production.

The unorganized raw milk market in developing countries is one of the restraints for the UHT milk market, as raw milk is preferred by consumers due to their perception of its high nutritional value and freshness. The market is highly concentrated at the top. However, it is characterized by the presence of large numbers of private label brands offered under the branding of retail stores.

For more info (desk of content material), Figures and Tables of the reporthttp://www.persistencemarketresearch.com/toc/4093

In terms of volume, the demand for UHT milk in South Africa grew from 601.7 million liters in 2010 to XXXX million liters in 2013 at a CAGR of XX%. In terms of revenue, the UHT milk market grew from USD XXXX million in 2010 to USD XXXX million in 2013 at a CAGR of XX%.In terms of volume, the demand for UHT milk in South Africa is expected to grow from an estimated XXXX million liters in 2014 to XXXX million liters by 2019 at a CAGR of XX%. In terms of revenue, the market is expected to grow from an estimated USD XXXX million in 2014 to USD 1,185.3 million by 2019 at a CAGR of XX%.

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