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Confectionery Industry South Africa

The Confectionery Industry in South Africa 2024

Yasmin Mahomedy | South Africa | 29 February 2024

The Confectionery Industry in South Africa 2019

Yasmin Mahomedy | South Africa | 17 January 2019

The Confectionery Industry in South Africa 2016

Kim Imrie | South Africa | 19 May 2016

The Confectionery Industry in South Africa 2015

Kim Imrie | South Africa | 13 April 2015

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Report Coverage

This report on chocolate and sugar confectionery includes information on the state of the industry, increasing input costs and prices, competition issues including those from imports of cheap products, trade, and notable players. There are profiles of 19 companies including international players such as Nestle and Mondelez, large local manufacturers such as Tiger Brands and Premier, and other manufacturers such as Richester Foods, Sally Williams and Ferrero.

Introduction

• Increased chocolate and sugar confectionery revenue over the last few years has reflected price increases rather than volume growth.
• Price increases have been driven by inflation and higher electricity and raw material costs.
• Consumers are buying down.
• Strong competition from private label products resulted in branded sugar confectionery products losing market share.
• The industry is made up of many different scales of manufacturing, including multinationals and diverse local businesses.
• Challenges include high sugar prices, supply interruptions, power supply issues and financially constrained consumers.

Trends

• Branded sugar confectionery products have been losing sales to cheap private label products.
• Challenging economic climate, especially inflation, is pushing consumers to buy cheap products.
• Shrinkflation – as raw materials prices continue to increase, manufacturers are charging the same price for less product, to maintain revenue.

Opportunities

• Affordable products for price-sensitive consumers.
• Increasing alternatives to appeal to more health-conscious consumers.

Challenges

• Growing imports of cheap confectionery.
• High input costs.
• Increasing health concerns.
• Ongoing loadshedding.

Outlook

• The poor economy and pressure on disposable income will see people trading down to more affordable brands and private label or stop buying non-essential products.
• The provision of affordable sugar confectionery is an opportunity for the industry.
• Informal traders are expected to continue to put pressure on the formal retail market due to price and convenience.
• Although sugar confectionery was expected to record single-digit revenue growth in 2023, higher unit prices were expected to drive down retail volumes.
• Chocolate sales are expected to continue slowing.

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The Confectionery Industry in South Africa
The Confectionery Industry in South Africa 2024

Full Report

R 20 000.00(ZAR) estimated $1084.18 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 758.92 (USD)*

Historical Reports

The Confectionery Industry in South Africa 2019-01-17

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2016-05-19

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2015-04-13

R 1 900.00(ZAR) estimated $103.00 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
2.3. Size of the Industry 4
3. LOCAL 4
3.1. State of the Industry 4
Comparison of Chocolate Prices (2023) 6
3.2. Key Trends 7
3.3. Key Issues 7
3.4. Notable Players 8
3.5. Trade 9
Sugar* Confectionery Imports (Rm) 9
Chocolate* Confectionery Imports (Rm) 10
3.6. Corporate Actions 11
3.7. Regulations 11
3.8. Enterprise Development and Social Development 12
4. AFRICA 13
5. INTERNATIONAL 15
6. INFLUENCING FACTORS 17
6.1. Unforeseen Events 17
6.2. Economic Environment 17
6.3. Input Costs 17
6.4. Labour 19
6.5. Environmental Issues 19
6.6. Technology, R&D, Innovation 19
7. COMPETITIVE ENVIRONMENT 20
7.1. Competition 20
7.2. Ownership Structure of the Industry 21
7.3. Barriers to Entry 21
8. INDUSTRY SUMMARY 22
9. OUTLOOK 22
10. INDUSTRY ASSOCIATIONS 22
11. REFERENCES 23
11.1. Publications 23
11.2. Websites 23
APPENDIX 1 – Relevant Regulation 24
APPENDIX 2 - Summary of Notable Players 26
COMPANY PROFILES 30
Afrikoa (Pty) Ltd 30
Aldor Africa (Pty) Ltd 31
Caring Candies CC 33
Chocolats Marionnettes CC 34
Ethnic Candy CC 35
Ferrero South Africa (Pty) Ltd 36
Honest Chocolate (Pty) Ltd 38
Huguenot Fine Chocolates CC 40
KD Foods (Pty) Ltd 42
Kees Beyers Chocolate CC 44
Lindt and Sprungli (South Africa) (Pty) Ltd 46
Mars Consumer Products Africa (Pty) Ltd 48
Mondelez South Africa (Pty) Ltd 50
Nestle (South Africa) (Pty) Ltd 52
Premier FMCG (Pty) Ltd 55
Richester Foods (Pty) Ltd 59
Sally Williams Fine Foods (Pty) Ltd 61
Sweet Temptations Toffees (Pty) Ltd 63
Tiger Brands Ltd 65

Report Coverage

The report on the Confectionery Industry describes the state of the industry, major players and factors influencing the sector’s success in South Africa, on the continent and internationally. There are comprehensive profiles of 23 companies including the major industry players Mondel?z South Africa (Cadbury), Tiger Brands (Beacon), Nestlé and Premier Foods (Manhattan). The report includes profiles of Lodestone Brands, which is being sold by former Steinhoff International CEO Markus Jooste’s Mayfair Holdings, independent companies such as Beyers Chocolate and artisanal chocolatiers such as DV Artisan Chocolate, which attracted investment by Remgro subsidiary Invenfin.

Introduction

This report focuses on the South African confectionery industry which comprises the chocolate market, valued at approximately R6.4bn and sugar confectionery, which is valued between R12.5bn and R13.5bn. The industry was under pressure during 2018, mainly due to a challenging economic climate, low consumer confidence and increasing imports. Demand for sugar-free products, premium and artisan chocolates is driving the growth of small, niche manufacturers who are focusing on artisan chocolate that is organic and reasonably priced.

Strengths

• Large multinational spend on R&D which leads to innovation.
• The industry has room for multinationals as well as small independent chocolatiers to operate.

Weaknesses

• Dependent on fluctuating prices of commodities, sugar which is grown locally and cocoa, which is imported.
• Labour and raw material costs are higher in South Africa than other countries where confectionery is manufactured.
• Lack of funding and available confectionery expertise to assist entrepreneurs starting out.
• No local industry organisation to represent the industry to government.

Opportunities

•  Development of healthier confectionery alternatives appealing to more health-conscious consumers.
• Smaller packs for budget-conscious consumers and those seeking convenience.
• The production of chocolate using sustainably certified cocoa.

Threats

• A shortage of cocoa.
• Growing imports of sweets and confectionery.
• Increasing health concerns.

Outlook

Rising input costs, declining consumer confidence and increasing health awareness are some of the challenges that manufacturers are expected to face in the short-term. Innovation and product differentiation will be vital to remain competitive and companies will need to ensure their brands keep up with health trends which include sugar-free confectionery and protein bars with chocolate. John Downs, president and CEO of the National Confectioners Association, said: “No matter how the industry changes and shifts in the years to come, we know our category will continue to be relevant and grow.”

Read More..
The Confectionery Industry in South Africa
The Confectionery Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $103.00 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.10 (USD)*

Historical Reports

The Confectionery Industry in South Africa 2024-02-29

R 20 000.00(ZAR) estimated $1084.18 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2016-05-19

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2015-04-13

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 6
4.1.2. Regulations 6
4.1.3. Enterprise Development and Social Economic Development 8
4.2. Continental 8
4.3. International 10
5. INFLUENCING FACTORS 11
5.1. Economic Environment 11
5.2. Rising Operating Costs 11
5.3. Consumption Patterns 11
5.4. Cyclicality 11
5.5. Technology, Research and Development (R&D) and Innovation 12
5.6. Labour 13
5.7. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 16
7. SWOT ANALYSIS 16
8. OUTLOOK 17
9. INDUSTRY ASSOCIATIONS 17
10. REFERENCES 18
10.1. Publications 18
10.2. Websites 18
APPENDIX 1 19
Summary of Major Players 19
COMPANY PROFILES 23
ALDOR AFRICA (PTY) LTD 23
ART OF AFRICA CC 24
CARING CANDIES CC 26
CHOCOLATE TIME CC 28
CHOCOLATS MARIONNETTES CC 30
DE VILLIERS CHOCOLATE (PTY) LTD 32
DICKS SWEETS CC 34
ETHNIC CANDY CC 36
FERRERO SOUTH AFRICA (PTY) LTD 37
HOCHDORF SOUTH AFRICA (PTY) LTD 39
HONEST CHOCOLATE CC 40
HUGUENOT FINE CHOCOLATES CC 42
KEES BEYERS CHOCOLATE CC 44
LINDT AND SPRUNGLI (SOUTH AFRICA) (PTY) LTD 46
LODESTONE BRANDS (PTY) LTD 48
MARS CONSUMER PRODUCTS AFRICA (PTY) LTD 51
MONDELEZ SOUTH AFRICA (PTY) LTD 53
NESTLE (SOUTH AFRICA) (PTY) LTD 55
PREMIER FMCG (PTY) LTD 59
SALLY WILLIAMS FINE FOODS (PTY) LTD 64
SWEET TEMPTATIONS TOFFEES (PTY) LTD 66
TIGER BRANDS LTD 68
TRADE KINGS (SOUTH AFRICA) (PTY) LTD 73
VON GEUSAU CHOCOLATES CC 75

Report Coverage

The Confectionery report describes the sector in South Africa, discusses current conditions and factors influencing the success of the industry. Twenty-one companies are profiled, including the multinational confectionery manufacturers and importers, as well as Kees Beyers Chocolate, the largest local manufacturer of chocolate products which acquired the Sweetie Pie brand in 2013. Also profiled are small artisanal confectioner, DV Chocolate which manufactures branded chocolate for Woolworths, and micro-enterprise Shooga Shooga, which manufactures and wholesales sugar confectionery.

Introduction

This report focuses on the South African confectionery industry with an emphasis on the chocolate confectionery sector. Analysts estimate that the local confectionery market is growing at a compound annual growth rate (CAGR) of 2.4% giving an industry value of between R12.4bn and R13.5bn. Chocolate confectionery valued at approximately R6bn is growing at an estimated 7.5%, while the premium confectionery segment is reporting growth of up to 15%.

Strengths

• Large multinational spend on R&D which leads to innovation.
• There is room for multinationals as well as small independent chocolatiers.

Weaknesses

• Dependent on fluctuating prices of commodities, sugar which is grown locally and cocoa, which is imported.
• Labour and raw material costs are higher in South Africa than other countries where confectionery is manufactured.
• Lack of funding and available confectionery expertise to assist entrepreneurs starting out.
• No local industry organisation to represent the industry with government.

Opportunities

• As multinationals sell off non-core assets, smaller companies can buy the rights to established products.
• Demand for chocolate is growing in Africa.
• Development of healthier confectionery alternatives appealing to more health-conscious consumers.
• Premium brand chocolate confectionery with the increase in upwardly mobile consumers.
• Smaller packs for budget-conscious consumers and those seeking convenience.
• The production of chocolate using sustainably certified cocoa.

Threats

• A shortage of cocoa.
• Growing imports of sweets and confectionery.
• Increasing health concerns.
• Relocation of multinational manufacturing facilities to other countries due to a lack of local competitiveness.

Outlook

A continuing trend is the rapidly decreasing market share of the large multinationals and the increasing share of imported varieties and specialist local confectioners. The sluggish economy means that manufacturers are bearing the brunt of higher input costs and slowing sales in some confectionery categories. Despite these challenges, above GDP growth is expected and looks set to continue for the foreseeable future. Analysts predict that multinationals will continue to target untapped emerging markets with their higher growth potential.

Read More..
The Confectionery Industry in South Africa
The Confectionery Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $103.00 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.10 (USD)*

Historical Reports

The Confectionery Industry in South Africa 2024-02-29

R 20 000.00(ZAR) estimated $1084.18 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2019-01-17

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2015-04-13

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 10
4.1.2. Regulations and Government Programmes 12
4.1.3. Enterprise Development and Social Economic Development 14
4.2. Continental 15
4.3. International 16
5. INFLUENCING FACTORS 18
5.1. Economic Environment 18
5.2. Consumption Patterns 20
5.3. Research and Development (R&D) and Innovation 20
5.4. Demand for Cocoa Exceeding Supply 21
5.5. Environmental Concerns 22
5.6. Price Versus Health Concerns 23
5.7. Labour 23
5.8. Cyclicality 24
6. COMPETITION 25
6.1. Barriers to Entry 25
7. SWOT ANALYSIS 26
8. OUTLOOK 26
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 28
10.1. Publications 28
10.2. Websites 28
COMPANY PROFILES 29
Art of Africa CC 29
Chocolats Marionnettes CC 31
Coach House Nougat Company (Pty) Ltd 33
Dicks Sweets CC 35
Ethnic Candy CC 37
Ferrero South Africa (Pty) Ltd 38
Honest Chocolate CC 40
Huguenot Fine Chocolates CC 42
In-Sync Consultants (Pty) Ltd 44
Inkanyezi Chocs (Pty) Ltd 46
Kees Beyers Chocolate CC 48
Lindt and Sprungli (South Africa) (Pty) Ltd 50
Lodestone Brands (Pty) Ltd 52
Mars Consumer Products Africa (Pty) Ltd 55
Mondelez South Africa (Pty) Ltd 58
Nestle (South Africa) (Pty) Ltd 60
Premier FMCG (Pty) Ltd 63
Sally Williams Fine Foods (Pty) Ltd 67
Sweet Temptations Toffees (Pty) Ltd 69
Tiger Brands Ltd 70
Trade Kings (South Africa) (Pty) Ltd 75
Von Geusau Chocolates CC 77

Report Coverage

This report focuses on the local confectionery market and specifically on the chocolate confectionery market which despite tough economic times and growing concerns over health aspects and sustainability issues, continues to grow at 10% per annum. The report also profiles 21 industry players, ranging from Mondelez South Africa which employs 2,200 people to recently established small enterprise Inkanyezi Chocs (Pty) Ltd t/a Arriba Chocolates, which has 18 employees at its Randburg factory.

Introduction

The value of the South African confectionery market is between R11bn and R12bn with approximately half of this value comprising chocolate confectionery. Multinationals present in South Africa are following global strategies of improving efficiencies in their supply chain which include selling off non-core brands and improving economies of scale by producing popular countlines in high-volume factories. This report focuses on the local confectionery market and specifically on the chocolate confectionery market which is growing at 10% per annum.

Strengths

• Large multinational spend on R&D which leads to innovation.
• There is room for multinationals as well as small independent chocolatiers.

Weaknesses

• Dependent on fluctuating prices of commodities, sugar which is grown locally and cocoa, which is imported.
• Labour and raw material costs are higher in South Africa than other countries where confectionery is manufactured.
• Lack of funding and available confectionery expertise to assist entrepreneurs starting out.
• No local industry organisation to represent the industry with government.

Opportunities

• Appeals to a new market of socially-conscious consumers through the use of certified cocoa.
• As multinationals sell off non-core assets, smaller companies can buy the rights to established products.
• Demand for chocolate is growing in Africa.
• Development of healthier confectionery alternatives appealing to more health-conscious consumers.
• Premium brand chocolate confectionery with the increase in upwardly mobile consumers.
• Smaller packs for budget-conscious consumers and those seeking convenience.

Threats

• A shortage of cocoa.
• Growing health concerns.
• Growing imports of sweets and confectionery.
• Power outages.
• Relocation of multinational manufacturing facilities to other countries due to a lack of competitiveness.

Outlook

For the foreseeable future factors such as slow economic growth and depressed consumer spending will have a negative effect on demand for confectionery and Tiger Brands reported that “no significant improvement” is anticipated in the next 12 months. Companies are focusing on maintaining market share through cost savings and efficiencies, ensuring innovation and competitive pricing. Despite per capita demand having slowed in Western markets, the developing markets of Africa, Asia and Oceania are providing growth rates of 10% and the value of the local chocolate industry is expected to reach R8n by 2018.

Read More..
The Confectionery Industry in South Africa
The Confectionery Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $103.00 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.10 (USD)*

Historical Reports

The Confectionery Industry in South Africa 2024-02-29

R 20 000.00(ZAR) estimated $1084.18 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2019-01-17

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2016-05-19

R 1 900.00(ZAR) estimated $103.00 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 10
4.1.2. Regulations & Government programmes 11
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 13
5. INFLUENCING FACTORS 15
5.1. Economic Environment 15
5.2. Demand for Cocoa exceeding Supply 15
5.3. Rising Input Costs 16
5.4. Supply Chain 17
5.5. Environmental Concerns 17
5.6. Health Concerns 18
5.7. Labour 19
5.8. Cyclicality 20
6. COMPETITION 21
6.1. Barriers to Entry 21
6.2. Research and Development (R&D) and Innovation 21
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 24
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 25
ORGANOGRAM 26
COMPANY PROFILES 28
CHOCOLATS MARIONNETTES CC 28
COACH HOUSE NOUGAT COMPANY (PTY) LTD 30
DICKS SWEETS CC 32
ETHNIC CANDY CC 34
HONEST CHOCOLATE CC 35
HUGUENOT FINE CHOCOLATES CC 36
IMSOFER MANUFACTURING (PTY) LTD 38
INKANYEZI CHOCS (PTY) LTD 40
KEES BEYERS CHOCOLATE CC 41
LINDT AND SPRUNGLI (SOUTH AFRICA) (PTY) LTD 43
LODESTONE BRANDS (PTY) LTD 45
MONDELEZ SOUTH AFRICA (PTY) LTD 47
NESTLE (SOUTH AFRICA) (RF) (PTY) LTD 50
PREMIER FOODS (PTY) LTD 53
SALLY WILLIAMS FINE FOODS (PTY) LTD 56
SHOOGA SHOOGA (PTY) LTD 58
SWEET TEMPTATIONS TOFFEES (PTY) LTD 59
TIGER BRANDS LTD 60
TRADE KINGS (SOUTH AFRICA) (PTY) LTD 67
VON GEUSAU CHOCOLATES CC 69
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