Dietary requirements in South Africa are deeply-rooted with the consumption of milk and other dairy products. The developing economy in South Africa demands milk products with higher perseverance quotient as the consumers cannot afford wasting them due to curdling and absence of cold storage facilities. Ultra-high temperature (UHT) milk is slated to gain prominence in South Africa’s milk industry due to the pasteurization process that keeps it potable for a longer time. Volume-wise, the demand for UHT milk in South Africa reached 601.7 million liters in 2010. According to Persistence Market Research, the growth of South Africa UHT milk market is forecasted to attain an estimated US$ 1,185.3 million in market value by the end of forecast period 2014-2019.
Key Market Dynamics
Presence of a large number of private label brands in South Africa’s milk industry defines the sheer competition faced by participating companies. Dominating the retail store shelves has stimulated the UHT milk distributors to enter such fierce competition, which has influenced the growth of South Africa UHT milk market. Moreover, consumers are accepting UHT milk as a long-lasting and affordable alternative to regular packaged milk or raw milk, which is driving the growth of South Africa UHT milk market. Schools opting for UHT milk for their feeding programs indicates the growing proliferation of UHT milk market in South Africa. However, powdered milk products are threatening the consumption of UHT milk in South Africa. Additionally, the unavailability of necessary capital and lack of expertise is further disheartening the progress endured by UHT milk manufacturers and distributors in South Africa.
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The South Africa UHT milk market is primarily classified into product-type and distribution channels segments. Growth of South Africa’s UHT milk market can be assessed by fragmenting it into skimmed UHT milk, whole UHT milk and semi-skimmed UHT milk. By 2019-end, the share of semi-skimmed UHT milk is slated to increase higher than other product-types in South Africa UHT milk market. Distribution channels such as supermarket or hypermarkets, food & drink specialist, independent small grocers, and other dairy retail outlets, are also considered during the segmentation of South Africa UHT milk market. Large-size hypermarkets will garner higher sales due to their capacity to keep larger volumes in stock, compared to independent retailers and small convenience stores.
The report on South Africa UHT milk market can be segmented, additionally, on the basis of regions. Since South Africa is among the developing countries in the Middle East & Africa (MEA) region, its UHT market can be fragmented into provinces such as Eastern Cape, Western Cape, Gauteng, KwaZulu-Natal, and others. Urbanization expanding in these provinces is incidentally impacting the growth of South Africa UHT milk market. With over two-third of the country’s population living in urban areas, cities such as Polokwane, Rustenburg, Nelspruit, Vanderbijlpark, and Ekurhuleni are developing at rampant pace. The long-lasting facet of UHT milk is rendering it integral to non-perishable groceries list of urban consumers. Low-income population in such provinces are also projected to buy the affordable UHT milk and avoid wastage of raw milk due to curdling.
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Key Market Players
Securing prominence in retail stores, hypermarkets and other dairy outlets remains to be a key motive of UHT milk distributors for business proliferation in South Africa. The South Africa UHT milk market, hence, is highly competitive. Increasing demands are pushing the market’s prominent players towards the edge, urging them to rev up their production and assure the quality while doing so. Some leading companies recognized in the South Africa UHT milk market include, Dewfresh Products (Pty) Ltd., Clover Industries Ltd., Parmalat SA (Pty) Ltd., Woodlands Dairy, and Coega Dairy, among others.