Yoghurt
The yoghurt market in South Africa has traditionally seen good growth year on year. The category volume growth in 2012 continued this trend. Yoghurt is seen as a healthy product, which is helped by advertising and marketing. This growth is expected to slow down moving forward into 2014, as manufacturers expect to slow their production after the large increase they expect in 2013. Producers also attribute this expectation to the slow value growth in the category.
The value for the market grew as the pricing for yoghurt increased. This growth was driven by the larger pack sizes, which became more in demand during 2012, through change made by the suppliers.
The majority of the channel distribution of yoghurt remained relatively unchanged on a share basis. In volume terms, the retail channel maintains a dominant portion of the market.
Due to the large growth of the category volumes, all regions but Eastern Cape, Free State and the Western Cape saw a decline in distribution. However, Gauteng and KwaZulu-Natal took up the excess distribution, gaining much more market share. This is also because new players entered into the market, focusing their products on their regions specifically.
Multipacks and smaller yoghurt tubs felt a decline in production this year. Some players curtailed their production of multipacks in favour of bulk options, with the possibly better value for money proposition associated with this. However, multipacks still represent a convenient snack solution and smaller pack ranges still dominant this category.
The drinking yoghurt market continues to increase in both volume and value. Larger players dominate the market, but there are many smaller dairies producing drinking yoghurt. It is hypothesised that drinking marketing campaigns have played an effective role in the year on year growth of this category.
Players in the market feel that the rise in the popularity of drinking yoghurt is sourced primarily within brand activities and the health positioning of the category.
Rigid plastic is the dominating pack type in this category. Players have projected growth in this pack type with new additional pack sizes. Sachets are expected to grow in this market as there are players planning to enter this pack type category.
Top-end retail demand for drinking yoghurt continues to be the dominant consumption channel. Bottom-end retail outlets have also shown growth by ensuring that the product is within reach in within this sector.
BMi Research specialises in consumer and industrial research in various sectors, including the retail market. For more information, go to www.bmi.co.za.
