Is Banting moving the SA cheese market forward?
Over the past few years, the global cheese market is one sector that has seen tremendous growth, however, given the significant economic challenges facing South African consumers cheese products are often viewed as a luxury purchase. With the Noakes-induced Banting trend in South Africa prescribing the consumption of cheese, just what impact, if any, is this phenomenon having on domestic consumption trends?
Insight Survey’s latest SA Cheese Industry Landscape Report carefully unfolds the local cheese markets based on the latest information and research. It discusses the current and prospective market drivers and restraints, as well as global and local market growth to present an objective insight into the South African cheese industry and its future.
In 2015, the global cheese market was estimated to be worth almost US$80.5 billion. Due to several driving forces, the market is expected to grow strongly over the five years, reaching $110.5 billion by 2021. The Asia-Pacific market is predicted to experience the highest growth rate with a compound annual growth rate of 8.1% up to 2021, based on their growing economies and middle class.
In South Africa, the economic situation has become increasingly dire. According to Statistics South Africa, the country’s economy only grew by 0.2% quarter-on-quarter (for the third quarter of 2016). Additional factors, such as current unemployment rates (27.1% at the end of November 2016), the increase in maize prices and the continuing drought in parts of the country has led to a reduction in disposable income for the majority of South African consumers.
Despite the economy, our country and its people continue to be full of surprises. Health-conscious consumers, the average joe content with fast food purchases or having a convenient on-the-go snack, as well as the connoisseur perusing locally produced or international artisanal cheeses, eagerly contributed to consumer spend on cheese. Cheese imports have increased significantly, by almost 44%, between 2014 to 2016.
This trend can also be seen in recent Nielsen data, which indicated that, even though retail prices for pre-packaged cheese increased by 8.7% (from September 2015 to September 2016), retail sales quantities for pre-packaged cheese have actually increased by 11.9% for the 12 months from October 2015 to September 2016, compared to the previous 12-month period.
The current Banting craze in the country has, no doubt, played a role in driving our cheese consumption. Banting is a low-carbohydrate, high-fat diet, which aims to make one’s body switch from burning carbs for energy to burning fat. With contents including protein, vitamins and healthy fats, many cheese types fit in perfectly with the ideal Banting snack and could continue to contribute to the future growth of this industry, despite the difficult economic environment.
The SA Cheese Industry Landscape Report (110 pages) provides a dynamic synthesis of industry research, examining the local and global cheese industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from manufacturing/importing to retail and consumption.
Some key questions the report will help you to answer:
For a full brochure, go to: www.insightsurvey.co.za.
About Insight Survey:
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