The Manufacture of Pasta in South Africa
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 stocked up on dry foods. Sales of ready-to-eat pasta meals are growing, driven by higher income consumers, but the segment still remains small.
South Africa is a net importer of pasta. Some industry players say pasta importers are taking advantage of a regulatory misalignment that enables them to import pasta from the EU and other Southern African Customs Union members at lower prices than local manufacturers can offer. Between 2014 and 2020, dry pasta imports have recorded double-digit growth in all but two years and are on track to grow similarly in 2021. Exports grew by just 0.2% in 2020. An anti-dumping determination in March 2021 resulted in higher import tariffs for countries involved in dumping pasta in South Africa and neighbouring countries.
Local dry pasta manufacturers operate in a price-sensitive market and face competition from subsidised low-priced imported pasta from countries such as Turkey and Egypt and EU members such as Latvia and Lithuania. The dried pasta market is dominated by Tiger Brands and Pioneer Foods, and there have been no new entrants to the market in recent years, while some small companies have closed.
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.
||DESCRIPTION OF THE INDUSTRY
||Industry Value Chain
||SIZE OF THE INDUSTRY
||STATE OF THE INDUSTRY
||Enterprise Development and Social Economic Development
||Rising Input Costs
||Technology, Research and Development (R&D) and Innovation
||Barriers to Entry
||Summary of Notable players
||F G LA PASTA (PTY) LTD
||GRIEKWALAND WES KORPORATIEF LTD
||KELLOGG COMPANY OF SOUTH AFRICA (PTY) LTD
||KELLOGG TOLARAM SOUTH AFRICA (PTY) LTD
||LA PASTA DELIZIA CC
||M G PASTA CC
||NESTLE (SOUTH AFRICA) (PTY) LTD
||PASTA FACTORY (PTY) LTD (THE)
||PIONEER VOEDSEL (PTY) LTD
||PRONTO PASTA (PTY) LTD
||SUNSHINE MACARONI CO (PTY) LTD
||TIGER BRANDS LTD
||UNILEVER SOUTH AFRICA (PTY) LTD
||WHEAT MILLERS AND GRINDERS (PTY) LTD