Good outlook for canned milk, creams market

Product definitions

• Canned milk - includes both condensed milk and evaporated milk. Condensed milk is made from a base of fresh milk to which premium grade white sugar is added. Once the sugar is added, the milk is pasteurised and then evaporated under vacuum to remove some of the water. The product is a viscous mixture, which can be added to tea or coffee, used in desserts or baking. Also included within this category is canned caramelised and/or condensed milk.
  
• Evaporated milk - is concentrated homogenised milk, which is sterilised in the can. It is not as sweet as condensed milk and is classified as unsweetened condensed milk. When diluted with water the equivalent of ordinary milk can be achieved. Evaporated milk can be used in tea and coffee as well as in desserts and baking.
  
• Dairy cream - includes fresh cream, UHT cream and sterilised cream. The industrial usage of cream that is produced 'in-house' is excluded. The research has only quantified the open trade in cream.
  
• Non-dairy cream - is an oil in water emulsion made from hydrogenated palm kernel oil. It is commonly used as an alternative for fresh whipped cream, mainly in the baking industry, but is also found in the retail industry

Dairy creams, with over one third of the total market, showed healthy volume growth for 2012. Non-dairy creams grew relatively slowly. The canned milk market showed a slight decline, being an improvement on 2011. The retail sector accounts for just over half of the total market volumes. The next largest channel is the industrial sector. Non-dairy cream usage is skewed to the industrial sector.

Channel distribution - 2012

Gauteng and the Western Cape together account for nearly two thirds of total market volumes, this representing the majority share of regional volumes and no significant changes in packaging were seen in 2012.

Regional distribution - 2012

The outlook for canned milk and creams looks positive for 2013 and 2014.

BMi Research specialises in consumer and industrial research in various sectors, including the retail market. For more information, go to www.bmi.co.za.