The market has seen a level of volatility over the years. Category volumes saw declines for 2008 through to 2010, as recessionary pressures translated into a dwindling demand. However, the category did well to recover during 2011 and this began the growth trend carried through to 2012. The base year saw a healthy growth.
The outlook for flavoured milk remains conservative in the short term, especially given the higher than average growth seen for 2012.
Despite the downward volume trend during the recession, the category was able to maintain pricing levels and consequently market values have been relatively stable. The growth in category value for 2012 was driven predominantly by an increase in price, but the significant growth in volume also underpinned this.
Flavoured milk is mainly sold through the top-end retail channel, with wholesale representing the second tier of usage. A small volume is exported.
Regional distribution is representative of metropolitan population, with consumption dominated by the Western Cape, Gauteng and KwaZulu-Natal.
Flavoured milk is a pasteurised and homogenised low fat milk product that is sweetened and flavoured. It then undergoes a sterilisation process that removes all microorganisms and helps to extend its shelf life. This product can be kept on shelf for longer than regular dairy beverages. The majority of flavoured milk volumes are marketed in rigid plastic. Carton makes up a limited portion of category volumes.
BMi Research specialises in consumer and industrial research in various sectors, including the retail market. For more information, go to www.bmi.co.za.
(Image of milk cartons on shelves: Wikimedia Commons)
