South Africa Confectionery Market Report 2024 - Branded Sugar Confectionery Products have been Losing Sales to Cheap Private Label Products
Dublin, May 06, 2024 (GLOBE NEWSWIRE) -- The "Confectionery Industry in South Africa 2024" report has been added to * ResearchAndMarkets.com's* offering.
South Africa's confectionery industry continues to be characterized by its resilience, weathering escalated input costs and a challenging economic environment.
The industry has seen a trend of revenue growth, attributed primarily to price increases rather than volume sales. This price amplification is a direct result of intensified inflationary pressures and the climbing costs of electricity and essential raw materials. Notably, competition intensifies due to the influx of imported products, which often undercut local manufacturer prices.
*Market Composition and Major Players*
The industry showcases a diverse mix of entities ranging from multinational corporations to various local businesses. Among the significant contributors are well-established international brands like Nestle and Mondelez, prominent local manufacturers such as Tiger Brands and Premier, and other key manufacturers including Richester Foods, Sally Williams, and Ferrero. These entities collectively contribute to the dynamic and complex landscape of South Africa's confectionery market.
*Consumer Buying Patterns and Industry Trends*
Current consumer behavior indicates a shift towards more economical purchases as consumers are 'buying down' in the face of financial constraints. Branded sugar confectionery products lose market shares to private label products that offer competitive pricing.
Furthermore, the industry faces a prevalent trend of "shrinkflation," where manufacturers reduce product quantity while maintaining prices in an effort to sustain revenue amidst rising raw material prices.
*Identified Opportunities*
The industry harbors potential growth opportunities, notably in the provision of cost-effective products tailored for price-sensitive consumers. Additionally, there is an increasing demand for healthier alternatives within the confectionery sector, which presents a niche market for innovation and diversification.
*Persistent Challenges*
Despite potential areas for opportunity, the industry must navigate pervasive challenges such as the growing influx of inexpensive imported confectioneries, elevated input costs, and an increased focus on health impact from consumers. Furthermore, ongoing power supply issues dubbed "loadshedding" continue to destabilize production and operational efficiency.
*Forecasting the Market Outlook*
Looking ahead, the economic pressure and the consequent erosion of disposable incomes are projected to drive consumers toward more affordable brands. This shift presents a strategic opportunity for manufacturers to cater to the demand for budget-friendly confectionery options.
Nonetheless, the industry is poised for a cautious approach as chocolate sales and sugar confectionery retail volumes face potential deceleration due to price sensitivity and economic constraints. Informal trading is expected to maintain its competitive edge over formal retail channels, based on price advantage and convenience.
The confectionery industry in South Africa stands at a crossroads of challenge and opportunity, necessitating strategic foresight and resilience for sustained growth.
*Companies Profiled:*
· Afrikoa (Pty) Ltd
· Aldor Africa (Pty) Ltd
· Caring Candies CC
· Chocolats Marionnettes CC
· Ethnic Candy CC
· Ferrero South Africa (Pty) Ltd
· Honest Chocolate (Pty) Ltd
· Huguenot Fine Chocolates CC
· KD Foods (Pty) Ltd
· Kees Beyers Chocolate CC
· Lindt and Sprungli (South Africa) (Pty) Ltd
· Mars Consumer Products Africa (Pty) Ltd
· Mondelez South Africa (Pty) Ltd
· Nestle (South Africa) (Pty) Ltd
· Premier FMCG (Pty) Ltd
· Richester Foods (Pty) Ltd
· Sally Williams Fine Foods (Pty) Ltd
· Sweet Temptations Toffees (Pty) Ltd
· Tiger Brands Ltd
For more information about this report visit https://www.researchandmarkets.com/r/hb029x
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