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Market Research Report

The Baby Food Sector in South Africa, 2019

Published by GlobalData Product code 553423
Published Content info 132 Pages
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The Baby Food Sector in South Africa, 2019
Published: April 30, 2019 Content info: 132 Pages
Description

The retail sales for baby food in South Africa stood at R5.4 billion (US$407 million) in 2018, up 66% on 2012. The sector remained vibrant up to 2016, despite a poor economic climate, but has recently been adversely affected by lower birth numbers and a continuing sluggish economy. However, all categories, aside from baby drinks, have expanded in real terms over this period. Consumption per baby aged 0-3 years stood at 12.7kg in 2018, but because only a proportion of mothers are in a financial position to purchase baby food, per capita figures underestimate the average amount of baby food consumed by the babies that do eat it.

The highest growth rate over the period 2012 to 2018 was registered by wet meals, where retail sales doubled and volume sales rose by 12%. The category has been able to maintain stable volume sales thanks to the appearance of new products, principally pouches, which have worked to balance the adverse swing caused by a trend towards home-prepared meals. The cereals category has also shown above-average growth, whereas drinks are in decline. Milks, however, remains the dominant product group, accounting for 69% of retail sales and 52% of volume in 2018.

There is significant domestic production, with market leader Nestle producing both its milks and cereals in the country. Other local producers include Tiger Brands, Aspen, and Rhodes Food Group. Imports have fallen considerably in recent years, from a recent high of over 5,000 tons in 2012 to 1,425 tons in 2017. The largest supplier of milks over the past few years has consistently been Germany.

Nestle, despite losing share, has been the most important supplier throughout this period, accounting for 52.5% of total market value in 2018. Tiger Brands (Purity) is in second place with 21%, while Aspen (which sold its business to Lactalis in late 2018) has been strengthening its position, gaining a share of 19%. Other players include Abbott and companies offering organic or "healthier" food, including Allganix (Olli's), Hipp, Rhodes (Squish), and Woolworths.

Baby food is distributed through a variety of outlets in South Africa and there are no restrictions on its sale. Supermarkets are the main source of supply, accounting for over half of volumes, while hypermarkets are growing in importance. Pharmacies are also a significant point of distribution, especially in the milks and cereals categories, and specialist baby stores are becoming more popular.

"The Baby Food Sector in South Africa, 2019", is an analytical report which provides extensive and highly detailed current and future market trends in the South African market. The report offers -

  • Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry
  • Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors
  • Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands
  • Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel
  • Future projections considering various trends which are likely to affect the industry

Companies Mentioned: Nestle (South Africa) (Pty) Ltd, Tiger Brands Ltd, Aspen Nutritionals (Pty) Ltd, Other Suppliers

Scope

  • The top three Living Standards Measure (LSM) groups, 8-10, are the main purchasers of commercially prepared baby food, and these groups represented just 24.5% of the population in 2015.
  • Consumption per baby aged 0-3 years stood at 12.7 kg in 2018, but because only a proportion of mothers are in a financial position to purchase baby food.
  • The highest growth rate over the period 2012 to 2018 was registered by wet meals, where retail sales doubled and volume sales rose by 12%.
  • There is significant domestic production, with market leader Nestle producing both its milks and cereals in the country. Other local producers include Tiger Brands, Aspen, and Rhodes Food Group.
  • Nestle, despite losing share, has been the most important supplier throughout this period, accounting for 52.5% of total market value in 2018. Tiger Brands (Purity) is in second place with 21%, while Aspen (which sold its business to Lactalis in late 2018) has been strengthening its position, gaining a share of 19%.
  • Supermarkets are the main source of supply, accounting for over half of volumes, while hypermarkets are growing in importance.
  • The market is expected to increase by 65% in current price terms between 2018 and 2024.

Reasons to buy

  • Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
  • Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
  • Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
  • Investigates which categories are performing the best and how this is changing market dynamics.
Table of Contents
Product Code: BF267MR

Table of Contents

  • Introduction
  • Executive Summary
  • Definitions
  • Background to the Market
  • Birth: Live Birth Rates
  • Births: Live Births by Region
  • The Consumer
  • Socio-Demographic Trends
  • Working Women
  • Regulations
  • Breastfeeding Trends
  • Overview
  • Sector Overview
  • Manufacturers Shares
  • Category Analysis
  • Baby Milks
  • Baby Cereals
  • Baby Meals
  • Baby Drinks
  • Production and trade
  • Production
  • Imports
  • Exports
  • Company profiles
  • Introduction
  • Nestle (South Africa) (Pty) Ltd
  • Tiger Brands Ltd
  • Aspen Nutritionals (Pty) Ltd
  • Other Suppliers
  • Distribution
  • Baby Food Retailing
  • Economic background
  • Political and Economic Background
  • Prospects and forecasts
  • Birth & Population Projections
  • Forecast Overview
  • Future Trends

Appendix

  • Additional Data Tables
  • Summary Methodology
  • About Globaldata

List of Tables

  • Table 1: Birth & Population Trends, 2008-2018
  • Table 2: Live Births by Province, 2010-2017
  • Table 3: Living Standard Measures, 2010-2015
  • Table 4: Ownership of Household Goods
  • Table 5: Annual Average Household Expenditure on Food, Beverages & Tobacco by Population Group, 2014/15
  • Table 6: Number of Women of Childbearing Age by Age Group, 2012 & 2018
  • Table 7: Current Birth Registrations by Age of Mother, 2010-2017
  • Table 8: Estimated Total Fertility Rates, 1996-2011
  • Table 9: Female Employment Trends, 2010-2018
  • Table 10: Employment Situation by Population Group, 2017
  • Table 11: Breastfeeding Status by Age, 2003/04 and 2016
  • Table 12: Breastfeeding Status by Age, 2016
  • Table 13: Breastfeeding Rates by Socio-Demographic Characteristic, 1998 & 2003
  • Table 14: Market Size, 2018, & Growth Rates, 2012-2018
  • Table 15: Baby Food: Manufacturer Share Trends, %, 2013-2018
  • Table 16: Baby Food: Manufacturer Shares by Category, %, 2018
  • Table 17: Baby Milks: Category Size, 2018
  • Table 18: Baby Milks: Category Growth, % 2012-2018
  • Table 19: Baby Milks: Price Positioning, 2018
  • Table 20: Baby Milks: Manufacturer Shares, % Value, 2013-2018
  • Table 21: Baby Milks: Manufacturer Shares, % Volume, 2014-2018
  • Table 22: Baby Cereals: Category Size, 2018
  • Table 23: Baby Cereals: Category Growth, % 2012-2018
  • Table 24: Cereals: Price Positioning, 2018
  • Table 25: Finger Foods: Price Positioning, 2018
  • Table 26: Baby Cereals: Manufacturer Shares, Trends, %, 2013-2018
  • Table 27: Baby Meals: Category Size, 2018
  • Table 28: Baby Meals: Category Growth, % 2012-2018
  • Table 29: Wet Meals: Price Positioning, 2018
  • Table 30: Wet Baby Meals: Manufacturer Shares, %, 2013-2018
  • Table 31: Baby Drinks: Category Size, 2018
  • Table 32: Baby Drinks: Category Growth, % 2012-2018
  • Table 33: Baby Drinks: Price Positioning, 2018
  • Table 34: Baby Drinks/Juices: Manufacturer Shares, %, 2013-2018
  • Table 35: Baby Food: Sales by Store Type, 2013-2018
  • Table 36: Baby Food: Sales by Category & Store Type, 2018
  • Table 37: Key Macro-Economic Indicators, 2012-2019
  • Table 38: Key Macroeconomic Forecasts, 2018-2024
  • Table 39: Birth & Population Projections, 2012-2024
  • Table 40: Baby Food: Category Growth, 2018-2024
  • Table 41: Baby Population, Number of Babies, '000, 2008-2024
  • Table 42: Baby Food: Market Value, Current Prices, 2012-2018
  • Table 43: Baby Food: Market Value, Constant Prices, 2012-2018
  • Table 44: Baby Food: Market Value, US$ Million, 2012-2018
  • Table 45: Baby Food: Market Volume, Tons, 2012-2018
  • Table 46: Baby Food: Per Capita Expenditure, Current Prices, 2012-2018
  • Table 47: Baby Food: Per Capita Expenditure, Constant Prices, 2012-2018
  • Table 48: Baby Food: Per Capita Expenditure, US$ Prices, 2012-2018
  • Table 49: Baby Food: Per Capita Consumption, Grams, 2012-2018
  • Table 50: Baby Milks: Category Trends, 2012-2018
  • Table 51: Baby Milks: Market Segmentation, Value and Volume, 2012-2018
  • Table 52: Milk Brand Price Analysis, 2018
  • Table 53: Baby Cereals: Category Trends, 2012-2018
  • Table 54: Meals: Category Trends, 2012-2018
  • Table 55: Drinks: Category Trends, 2012-2018
  • Table 56: Baby Milks & Cereals: Import Trends, 2012-2017
  • Table 57: Baby Milks & Cereals: Imports by Country of Origin, Value, 2015-2017
  • Table 58: Baby Milks & Cereals: Export Trends, 2012-2017
  • Table 59: Baby Milks & Cereals: Exports by Country of Destination, Value, 2015-2017
  • Table 60: Baby Food: Market Value Forecasts, Current Prices, 2018-2024
  • Table 61: Baby Food: Market Value Forecasts, Constant Prices, 2018-2024
  • Table 62: Baby Food: Market Value Forecasts, US$ Million, 2018-2024
  • Table 63: Baby Food: Market Volume Forecasts, Tons, 2018-2024
  • Table 64: Baby Food: Per Capita Expenditure, Current Prices, 2018-2024
  • Table 65: Baby Food: Per Capita Expenditure, Constant Prices, 2018-2024
  • Table 66: Baby Food: Per Capita Expenditure, US$, 2018-2024
  • Table 67: Baby Food: Per Capita Consumption, Grams, 2018-2024

List of Figures

  • Figure1: Baby Food: Market Size,2012-2018
  • Figure2: Baby Food: Per Capita Consumption, 2012-2018
  • Figure3: Baby Food: Market Segmentation, 2018
  • Figure4: Baby Food: Manufacturer Shares, Value, 2018
  • Figure5: Baby Food: Manufacturer Shares, Value %, 2018
  • Figure6: Baby Food: Manufacturer Shares, Volume %, 2018
  • Figure7: Baby Food: Manufacturer Shares by category, % Value, 2018
  • Figure8: Baby Milks: Category Trends, 2012-2018
  • Figure9: Baby Milks: Per Capita Expenditure & Consumption, 2012-2018
  • Figure10: Baby Milks: Per Capita Expenditure & Consumption by Age Group, 2012-2018
  • Figure11: Baby Milks: Category Segmentation, Value and Volume, 2012-2018
  • Figure12: Baby Cereals: Category Trends, 2012-2018
  • Figure13: Baby Cereals: Per Capita Expenditure & Consumption, 2012-2018
  • Figure14: Baby Meals: Category Trends, 2012-2018
  • Figure15: Baby Meals: Per Capita Expenditure & Consumption, 2012-2018
  • Figure16: Baby Drinks: Category Trends, 2012-2018
  • Figure17: Baby Drinks: Per Capita Expenditure & Consumption, 2012-2018
  • Figure18: Baby Food: Market Size, 2018-2024
  • Figure19: Baby Food: Per Capita Consumption, 2018-2024
  • Figure20: Baby Food: Market Segmentation, 2024
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