Report Coverage
This report focuses on the South African pasta manufacturing industry and includes information on the size and state of the sector, trade and price statistics, the performance of major players and corporate actions and developments. There are profiles of 15 companies including the large dry pasta manufacturers Tiger Brands and Pioneer Foods, noodle manufacturers such as Nestlé and local manufacturers such as FG La Pasta, MG Pasta, Pasta Factory and La Pasta Delizia.
Introduction
This report focuses on the South African pasta manufacturing industry which for dry pasta alone is estimated at not more than 80,000 tons in 2019, based on data of company production as well as figures disclosed in a recent International Trade Administration Commission (Itac) report. South African pasta imports grew 9.6% year on year by weight in 2020, according to South African Revenue Service (Sars) customs data. The country imported 47,100 tons of dry pasta in 2020, while stuffed pasta imports totalled 14,330 tons and couscous imports 1,604 tons. Pasta exports grew by only 0.2% year on year to 18,221 tons. Based on the value of Tiger Brands’ Fatti’s and Moni’s dry pasta market share, the dry pasta segment of the industry was valued at between R1.5bn and R2.1bn in revenue in 2020. The industry is facing increasing imports and Itac issued a provisional determination over anti-dumping by several countries in March 2021, hiking import tariffs for six months for those countries found to have been involved in dumping of pasta in South Africa, and neighbouring countries. Industry commentators say sales of pasta grew during the early stages of the lockdown as consumers stockpiled non-perishable food.
Strengths
• Manufacture is of a high standard.
• Some durum wheat is grown in South Africa, although farmers are increasingly losing interest in planting it.
• The sector is supported by the government though the levying of import tariffs and duties.
• The two major food companies are able to invest in research and development activities.
Weaknesses
• Declining local durum growing market, which means pasta producers must either use ordinary wheat or import the durum or semolina they need.
• Increasing volumes of wheat are imported and prices are affected by the volatility of the rand.
• Lack of local competition in the dry pasta market where two manufacturers dominate.
• Low margin, high volume production.
• Most sales are to the major retailers with resources to dictate terms to smaller pasta manufacturers.
• The local wheat tariff provides neighbouring countries with what local players say is an unfair advantage as it allows them to import wheat tariff-free from South Africa and export pasta at a lower price.
Opportunities
• Growth in the ready-made meals and meal kit convenience market as consumers dine out less often.
• Health focus leads to product expansion and new product lines, including organic, gluten-free, enriched, fresh and alternative pasta – mostly for the export market.
• Pasta is a growing staple food of the emerging black middle class.
• Preferential export markets due to the various international agreements.
Threats
• Changing consumer preferences.
• Competition to intensify.
• Failure of the local wheat harvest.
• Further unsustainable increases in input costs.
• Increasing pasta imports.
• Low economic growth affecting disposable income. No signs of consumer recovery.
• Market saturation.
• Unfair competition from cheap subsidised imports.
Outlook
While the performance of the pasta industry is influenced by the economy and financial well-being of consumers, both of which are under increasing pressure since the onset of the pandemic, pasta demand has grown as consumers have stocked up on dry foods. FG Pasta executive director Florian Giuricich is fairly positive and expects 2021 sales to exceed those of 2019. International Food Group executive director Mohammed Essak says the outlook for pasta in South Africa is positive, as more urbanised youth move from maize meal to pasta, which is quicker to prepare. Tiger Brands expects that in 2022 the market will return to single-digit growth from double-digit growth. However, manufacturers remain concerned about the threat of imports, which in 2019 constituted about a third of dry pasta consumption in South Africa.
Manufacture of Pasta Industry in South Africa
2021
Full Report
R 1 900.00(ZAR) estimated $106.86 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 74.80 (USD)*
Industry Organogram
R 450.00(ZAR) estimated $ 25.31 (USD)*
Historical Reports
Manufacture of Pasta Industry in South Africa 2018-11-28
R 1 900.00(ZAR) estimated $106.86 (USD)*
View Report Add to CartManufacture of Pasta Industry in South Africa 2016-04-18
R 1 900.00(ZAR) estimated $106.86 (USD)*
View Report Add to CartManufacture of Pasta Industry in South Africa 2014-05-13
R 1 900.00(ZAR) estimated $106.86 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 3 |
| 2.2. | Geographic Position | 4 |
| 3. | SIZE OF THE INDUSTRY | 5 |
| 4. | STATE OF THE INDUSTRY | 7 |
| 4.1. | Local | 7 |
| 4.1.1. | Trade | 12 |
| 4.1.2. | Corporate Actions | 15 |
| 4.1.3. | Regulations | 15 |
| 4.1.4. | Enterprise Development and Social Economic Development | 19 |
| 4.2. | Continental | 20 |
| 4.3. | International | 22 |
| 5. | INFLUENCING FACTORS | 25 |
| 5.1. | Coronavirus | 25 |
| 5.2. | Government intervention | 25 |
| 5.3. | Rising Input Costs | 26 |
| 5.4. | Economic environment | 27 |
| 5.5. | Labour | 27 |
| 5.6. | Cyclicality | 29 |
| 5.7. | Technology, Research and Development (R&D) and Innovation | 29 |
| 5.8. | Environmental Concerns | 30 |
| 6. | COMPETITION | 31 |
| 6.1. | Barriers to Entry | 32 |
| 7. | SWOT ANALYSIS | 32 |
| 8. | OUTLOOK | 33 |
| 9. | INDUSTRY ASSOCIATIONS | 33 |
| 10. | REFERENCES | 34 |
| 10.1. | Publications | 34 |
| 10.2. | Websites | 35 |
| APPENDIX 1 | 37 | |
| Summary of Notable players | 37 | |
| ORGANOGRAM | 39 | |
| COMPANY PROFILES | 41 | |
| F G LA PASTA (PTY) LTD | 41 | |
| GRIEKWALAND WES KORPORATIEF LTD | 43 | |
| KELLOGG COMPANY OF SOUTH AFRICA (PTY) LTD | 51 | |
| KELLOGG TOLARAM SOUTH AFRICA (PTY) LTD | 53 | |
| LA PASTA DELIZIA CC | 55 | |
| M G PASTA CC | 57 | |
| NESTLE (SOUTH AFRICA) (PTY) LTD | 59 | |
| PASTA FACTORY (PTY) LTD (THE) | 63 | |
| PIONEER VOEDSEL (PTY) LTD | 65 | |
| PRONTO PASTA (PTY) LTD | 70 | |
| SUNSHINE MACARONI CO (PTY) LTD | 71 | |
| TIGER BRANDS LTD | 72 | |
| UNILEVER SOUTH AFRICA (PTY) LTD | 77 | |
| WHEAT MILLERS AND GRINDERS (PTY) LTD | 80 |
