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manufacture bakery products industry south africa

The Manufacture of Bakery Products Industry in South Africa 2021

Stephen Timm | South Africa | 30 April 2021

The Manufacture of Bakery Products Industry in South Africa 2019

Carol Knoll | South Africa | 30 September 2019

The Manufacture of Bakery Products Industry in South Africa 2017

Yasmin Mahomedy | South Africa | 23 November 2017

The Manufacture of Bakery Products Industry in South Africa 2015

Yasmin Mahomedy | South Africa | 30 November 2015

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Report Coverage

This report focuses on the manufacture of bakery products and includes information on the state of the sector influencing factors and the major players, including their recent results, developments and corporate actions. There are profiles of 27 companies Including the four largest players, Pioneer Foods (Sasko and Duens bakeries), Tiger Brands (Albany bakeries), Premier Foods (Snowflake and Blue Ribbon flour and bakeries) and RCL Foods (Sunbake bakeries). Other profiled companies include bakeries such as Fournos, flour mills such as VKB and Retsol, owner of the Corner Bakery, which operates in petrol station forecourts.

Introduction

The focus of this report is the manufacture of bakery products in South Africa. Bread is the second most important provider of energy in the national diet after maize products. Bread consumption in South Africa increased slightly in 2020, by 0.6% over 2019. Despite this, the South African Chamber of Baking (SACB) said that the pandemic will likely result in a switch to other staples such as maize meal. While the manufacture of baked goods is a growing industry in South Africa, the pandemic has led to a number of artisanal bakeries shutting. Bigger bakeries have mostly benefited from consumers stocking up during the pandemic. However the industry is facing increasing costs, including higher flour prices, and the possible introduction of inspection services for the wheat sector, which could both lead to higher bread prices.

Strengths

• Bread is a staple food that is always in demand.
• Food retail market provides a strongly-established customer base.
• Large bakeries utilise new technology, processes and equipment for rapid mass production.
• Variety of innovative ingredients and textures produced largely by artisanal bakeries.

Weaknesses

• Bread sector dominated by four large players.
• Need to import wheat because of inadequate domestic production; results in volatile prices which can affect profit margins.
• Skills shortage in all areas of the industry, particularly specialised bakers.

Opportunities

• Increase in innovative ingredients.
• Increasing customer demand for artisanal products made by smaller bakeries.
• Increasing health concerns will increase demand for banting, sourdough, high protein and gluten-free baked products.
• Low barriers to entry.

Threats

• Low-carb diets and anti-GM campaigns jeopardise market growth.
• Movement back to maize meal products with recent good maize harvest.
• Rising costs of fuel, electricity, equipment and ingredients.
• Robberies of bakery delivery vans.
• The pandemic has suppressed demand for products from smaller bakeries.
• The possible introduction of inspection fees which risks driving up the cost of bread.

Outlook

Tiger Brands said in October 2020 that the outlook for fast-moving consumer goods remains uncertain. It flagged muted consumer spending in a weak economy; increased competition and power shifts in food retail with increased ecommerce offerings; and shifts in consumer dynamics such as more meals being consumed at home and an increased focus on health and wellness. While bread, as a staple foodstuff has survived a very difficult year, increased poverty brought about by higher unemployment will result in a switch to other staples such as maize meal, says the South African Chamber of Baking’s executive director Geoff Penny. However, any switch is not likely to be rapid. Penny notes that despite South Africa’s bumper maize crop in 2020, maize meal prices did not fall, as surplus maize was exported into Africa where there had been crop failures and to the Far East. Trend shifts for bakery products will likely be small in the coming year. In addition, the South African Chamber of Baking forecasts a small increase in sales of lighter mass bread (bread under 600 grams).

Read More..
The Manufacture of Bakery Products Industry in South Africa
The Manufacture of Bakery Products Industry in South Africa 2021

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Manufacture of Bakery Products Industry in South Africa 2019-09-30

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2017-11-23

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2015-11-30

R 1 900.00(ZAR) estimated $105.85 (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 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 10
4.1.2. Regulations 11
4.1.3. Enterprise Development and Social Economic Development 13
4.2. Continental 13
4.3. International 16
5. INFLUENCING FACTORS 17
5.1. Coronavirus 17
5.2. Economic Environment/Rising Input Costs 18
5.3. Labour 20
5.4. Technology, Research and Development (R&D) and Innovation 23
5.5. Genetically Modified Content and Health Concerns 23
5.6. Environmental Concerns and Solutions 24
6. COMPETITION 26
6.1. Barriers to Entry 27
7. SWOT ANALYSIS 27
8. OUTLOOK 28
9. INDUSTRY ASSOCIATIONS 28
10. REFERENCES 29
10.1. Publications 29
10.2. Websites 29
APPENDIX 1 31
Summary of Notable players 31
COMPANY PROFILES 36
ANAT FOODS (PTY) LTD 36
BAKE TECH (PTY) LTD 38
BIMBO QSR HOLDINGS SOUTH AFRICA (PTY) LTD 40
BREAD GYPSY CC (THE) 42
CAPE COOKIES (PTY) LTD 43
CHIPKINS PURATOS (PTY) LTD 45
DAISY HEALTH FOODS CC 47
FAMOUS BRANDS LTD 49
FOURNOS GROUP (PTY) LTD 55
GOOSEBUMPS (PTY) LTD 57
GREEN HEALTH INNOVATIONS (PTY) LTD 59
IN 2 FOOD GROUP (PTY) LTD 60
KHAYELITSHA COOKIES (PTY) LTD 63
KK DOUGHNUTS SA (PTY) LTD 65
LE PETIT PAIN (PTY) LTD 67
LIBSTAR OPERATIONS (PTY) LTD 69
MANGO GINGER BAKERY AND COFFEE SHOP (PTY) LTD 74
NATIONAL BRANDS LTD 75
PIONEER VOEDSEL (PTY) LTD 78
PREMIER FMCG (PTY) LTD 83
RCL FOODS LTD 89
RETSOL STORES (PTY) LTD 94
RHODES FOOD GROUP (PTY) LTD 97
RYMCO (PTY) LTD 102
SD MANTELL 104
TIGER BRANDS LTD 106
VKB AGRI PROCESSORS (PTY) LTD 111

Report Coverage

The focus of this report is the manufacture of bakery products in South Africa. It includes information on the state of the industry and the factors that influence it, including maize and wheat production and price trends, as well as the recent performance of the industry’s major players. There are profiles of 30 companies which include significant players such as Tiger Brands, RCL Foods and Pioneer. Profiles include VKB Agri Processors, which took full control of VKB Flour Mills (Kromdraai Group) Free State in 2018, and Krispy Kreme, which has opened doughnut mini-stores at selected locations countrywide including at Pick n Pay, Total Bonjour and Engen Quickshop stores. Smaller manufacturers such as Khayelitsha Cookies and Mango Ginger Bakeries are also featured.

Introduction

The focus of this report is the manufacture of bakery products in South Africa. Bread is the second most important provider of energy in the national diet after maize products. The South African Chamber of Baking (SACB) said that with the price of maize products decreasing following a good maize harvest, many people were reverting to maize meal. As a result, bread consumption in South Africa has declined slightly since May 2018. The manufacture of baked goods is a growing industry in South Africa, and artisanal and in-store bakeries are on the increase. Higher-income consumers have variety and health requirements, while there are opportunities for emerging bakers to enter local informal markets.

Strengths

• Bread is a staple food that is always in demand.
• Food retail market provides a strongly established customer base.
• Large bakeries utilise new technology, processes and equipment for rapid mass production.
• Variety of innovative ingredients and textures produced largely by artisanal bakeries.

Weaknesses

• Bread sector dominated by four large players.
• Need to import wheat because of inadequate domestic production; results in volatile prices which can affect profit margins.
• Skills shortage in all areas of the industry, particularly specialised bakers.

Opportunities

• Increase in innovative ingredients.
• Increasing customer demand for artisanal products made by smaller bakeries.
• Increasing health concerns will increase demand for banting, sourdough, high protein and gluten-free baked products.
• Low barriers to entry.

Threats

• Low-carb diets and anti-GM campaigns jeopardise market growth.
• Movement back to maize meal products with recent good maize harvest.
• Rising costs of fuel, electricity, equipment and ingredients.

Outlook

Wheat production forecasts for 2019/2020 by the Crop Estimates Committee in August 2019 are for 1.9 million tons, which is 2.55% or 47,650 tons more than the previous season’s crop of 1.87 million tons. The wheat industry has embarked on a revival strategy with higher yielding cultivars and adapting grading regulations to encourage farmers to plant more wheat, according to SACB. Bread will continue to be an essential part of the diet of most South Africans, although lower-income households may favour maize meal as a staple in difficult economic times. Consumers are becoming more health conscious and interested in obtaining nutritional information on labels. Manufacturers are offering ongoing variety in flavoured or speciality breads. SACB has been mandated to look into extending its training contribution and considering on-site training at bakeries to help fill the skills shortage.

Read More..
The Manufacture of Bakery Products Industry in South Africa
The Manufacture of Bakery Products Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Manufacture of Bakery Products Industry in South Africa 2021-04-30

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2017-11-23

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2015-11-30

R 1 900.00(ZAR) estimated $105.85 (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 2
3. SIZE OF THE INDUSTRY 2
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Corporate Actions 7
4.1.2. Regulations 8
4.1.3. Enterprise Development and Social Economic Development 9
4.2. Continental 10
4.3. International 13
5. INFLUENCING FACTORS 14
5.1. Government Intervention 14
5.2. Economic Environment/Rising Operating Costs 14
5.3. Labour 15
5.4. Technology, Research and Development (R&D) and Innovation 18
5.5. Genetically Modified Content and Health Concerns 18
5.6. Environmental Concerns and Solutions 19
6. COMPETITION 21
6.1. Barriers to Entry 22
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATION 23
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 24
APPENDIX 1 26
Summary of Notable players 26
COMPANY PROFILES 31
ANAT FOODS (PTY) LTD 31
BAKE TECH (PTY) LTD 34
BIMBO QSR HOLDINGS SOUTH AFRICA (PTY) LTD 36
BREAD GYPSY CC (THE) 38
BUTTERFIELD HOLDINGS (PTY) LTD 39
CAPE COOKIES (PTY) LTD 42
CHIPKINS PURATOS (PTY) LTD 44
DAISY HEALTH FOODS CC 46
FAMOUS BRANDS LTD 48
FOURNOS GROUP (PTY) LTD 54
FRANCOR BAKKERY HOLDINGS (PTY) LTD 56
FRESH EARTH GLUTEN FREE BAKE HOUSE (PTY) LTD 58
GOOSEBUMPS (PTY) LTD 60
GREEN HEALTH INNOVATIONS (PTY) LTD 62
IN 2 FOOD GROUP (PTY) LTD 63
KHAYELITSHA COOKIES (PTY) LTD 65
KRISPY KREME (PTY) LTD 67
LE PETIT PAIN (PTY) LTD 69
LIBSTAR OPERATIONS (PTY) LTD 71
MANGO GINGER BAKERY AND COFFEE SHOP (PTY) LTD 77
NATIONAL BRANDS LTD 78
PIONEER VOEDSEL (PTY) LTD 81
PREMIER FMCG (PTY) LTD 85
RCL FOODS LTD 90
RETSOL STORES (PTY) LTD 96
RHODES FOOD GROUP (PTY) LTD 99
RYMCO (PTY) LTD 104
SD MANTELL 106
TIGER BRANDS LTD 108
VKB AGRI PROCESSORS (PTY) LTD 113

Report Coverage

This report focuses on the manufacture of bakery products that include different types of bread and rolls, muffins, cakes, pastries, biscuits, rusks, doughnuts and savoury biscuits. Profiles are provided for 27 industry players including Butterfield Bakery, the largest bakery franchise in South Africa. Butterfield has various business models for prospective franchisees to choose from, such as a small-scale rural bread bakery, a high street upmarket confectionery bakery deli, or an automated industrial plant bakery catering to the wholesale market. Also profiled is the Rhodes Food Group, which in October 2016 acquired Ma Baker Pies for R212m in an effort to strengthen its position in South Africa’s growing pie and pastry market.

Introduction

This report focuses on the manufacture of bakery products in South Africa, a sector that is dominated by the bread and rolls category, which accounts for about 63.5% of sales. Bread is the staple food for more than half of South Africa’s population and this sub-sector generates revenue of approximately R22bn per annum. According to the South African Chamber of Baking (SACB), total bread production experienced growth in 2016, increasing from 171 million loaves in January 2016 to 182 million loaves baked in December 2016. This was as a result of consumers replacing the other staple, maize meal, with bread because of the higher price of maize products brought about by severe drought and the weaker South African rand.

Strengths

• Bread is a staple food and always in demand.
• The food retail market provides an established client base.
• Use of first world baking technology, processes and equipment by large companies.

Weaknesses

• Much of the wheat has to be imported and volatile prices impact on retail prices and profit margins.
• Shortage of skills especially experienced bakery managers.
• The bread sector is dominated by four companies that have a history of collusion.
• The use of GM wheat in bread making.

Opportunities

• Expansion into sub-Saharan Africa.
• Growing market for health-conscious consumers.
• Increasing demand for convenience bakery products.
• The provision of gluten-free and carbohydrate-free baked products.

Threats

• Anti-GM and bread campaigns threaten the growth of the sector.
• Rising costs such as fuel and electricity.
• Worsening economy, which for lower LSM consumers could mean a move towards cheaper maize products.

Outlook

In the short-term low business confidence levels and a low-growth environment are expected to limit opportunities in the domestic bakery products sector. Pioneer Foods believes companies need to focus on increasing market share in a contracting environment and to try to increase margins and overall financial performance. Although the South African Chamber of Baking confirmed that bread production increased in 2016 after previous years of declining sales, this trend is not expected to continue. As economic conditions become more difficult, maize products instead of bread are expected to once more become the staple food for South Africa\'s lower-income households.

Read More..
The Manufacture of Bakery Products Industry in South Africa
The Manufacture of Bakery Products Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Manufacture of Bakery Products Industry in South Africa 2021-04-30

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2019-09-30

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2015-11-30

R 1 900.00(ZAR) estimated $105.85 (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 3
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 15
4.2. Continental 17
4.3. International 19
5. INFLUENCING FACTORS 20
5.1. Government Intervention 20
5.2. Economic Environment 21
5.3. Rising Operating Costs 21
5.4. Labour 22
5.5. Technology, Research and Development (R&D) and Innovation 24
5.6. Genetically Modified Content and Health Concerns 25
5.7. Environmental Concerns 26
6. COMPETITION 27
6.1. Barriers to Entry 29
7. SWOT ANALYSIS 29
8. OUTLOOK 30
9. INDUSTRY ASSOCIATIONS 30
10. REFERENCES 30
10.1. Publications 30
10.2. Websites 31
COMPANY PROFILES 32
ANAT FOODS (PTY) LTD 32
BAKE TECH (PTY) LTD 34
BUTTERFIELD HOLDINGS (PTY) LTD 36
CAPE COOKIES CC 39
CHIPKINS PURATOS (PTY) LTD 41
DAISY HEALTH FOODS CC 43
EAST BALT HOLDINGS SOUTH AFRICA (PTY) LTD 45
ESPINACA INNOVATIONS (PTY) LTD 47
FAMOUS BRANDS LTD 48
FRANCOR BAKKERY HOLDINGS (PTY) LTD 54
FRESH EARTH GLUTEN FREE BAKE HOUSE (PTY) LTD 56
GOOSEBUMPS DISTRIBUTORS (PTY) LTD 58
GRAINFOODS BAKERIES (PTY) LTD 60
IN 2 FOOD GROUP (PTY) LTD 61
KHAYELITSHA COOKIES (PTY) LTD 63
LE PETIT PAIN (PTY) LTD 65
MA BAKER FOODS (PTY) LTD 67
MANGO GINGER BAKERY AND COFFEE SHOP (PTY) LTD 69
NATIONAL BRANDS LTD 70
PIONEER VOEDSEL (PTY) LTD 73
PREMIER FMCG (PTY) LTD 77
RCL FOODS LTD 82
RETSOL STORES (PTY) LTD 87
RHODES FOOD GROUP (PTY) LTD 90
RYMCO (PTY) LTD 94
SD MANTELL 96
TIGER BRANDS LTD 98

Report Coverage

This report focuses on the local bakery products sector, current conditions and general trends that could provide opportunities for growth. Also discussed are the factors that influence the success of the sector and the growing importance of the sub-Saharan market. Twenty-six industry players are profiled, ranging from the ‘big four’ to SMME Khayelitsha Cookies cc. Included is the Corner Bakery, which has 400 stores located at Engen forecourts across South Africa and sells more than 1 million pies per month, and a distributor of bakery items including popular frozen dough products, Goosebumps Distributors (Pty) Ltd.

Introduction

This report focuses on the manufacture of bakery products in South Africa, which is dominated by the bread and rolls category that accounts for 63.5% of sales. The revenue of the bread industry is approximately R22bn per annum but according to the South African Chamber of Baking (SACB), bread sales, a staple food for more than half of South Africa’s population, have been declining as financially constrained consumers turn to cheaper carbohydrates such as potatoes. The SACB highlighted that the reduction in hectares of wheat planted and the effects of the drought being experienced in most parts of South Africa will continue to place pressure on the value chain of the entire bakery products sector.

Strengths

• Bread is a staple food and always in demand.
• The food retail market provides an established client base.
• Use of first world baking technology, processes and equipment by large companies.

Weaknesses

• Much of the wheat has to be imported and volatile prices impact on retail prices and profit margins.
• Shortage of skills especially experienced bakery managers.
• The bread sector is dominated by four companies that have a history of collusion.
• The use of GM wheat in bread making.

Opportunities

• Expansion into sub-Saharan Africa.
• Growing market for health conscious consumers.
• Increasing demand for convenience bakery products.
• The provision of gluten-free and carbohydrate-free baked products.

Threats

• Anti-GM and bread campaigns threaten the growth of the sector as some consumers shift away from breads and other baked products.
• Rising costs such as fuel and electricity.

Outlook

Health is a key trend in South Africa and as more consumers turn to a low carbohydrate and sugar-free eating plan, bakers can benefit from baking these as well as gluten-free products. Although consumers in the middle to upper LSM groups will pay higher prices for products that offer health benefits, most consumers are expected to remain price-conscious and opt for cheaper baked products, especially as food, transport and electricity costs increase. The Pioneer Food Group reported that the South African economy remains vulnerable and is unlikely to recover in the short-term, while AVI highlighted that affordability will become an increasingly important factor. The Executive Director of SACB believes that due to capital constraints, the larger players are more likely to refurbish than build new bakeries. He commented, “In the medium- to long-term bread sales will remain depressed and the weak Rand will make procuring of wheat internationally more expensive,” resulting in further increases in the price of bread.

Read More..
The Manufacture of Bakery Products Industry in South Africa
The Manufacture of Bakery Products Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Manufacture of Bakery Products Industry in South Africa 2021-04-30

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2019-09-30

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Bakery Products Industry in South Africa 2017-11-23

R 1 900.00(ZAR) estimated $105.85 (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 3
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 11
4.1.2. Regulations and Government Programmes 12
4.1.3. Enterprise Development and Social Economic Development 14
4.2. Continental 16
4.3. International 17
5. INFLUENCING FACTORS 19
5.1. Government Intervention 19
5.2. Labour 19
5.3. Economic Environment and Rising Input Costs 21
5.4. Genetically Modified Content and Health Concerns 22
5.5. Environmental Concerns 24
5.6. Technology, Research and Development (R&D) and Innovation 25
6. COMPETITION 26
6.1. Barriers to Entry 28
7. SWOT ANALYSIS 28
8. OUTLOOK 29
9. INDUSTRY ASSOCIATIONS 29
10. REFERENCES 29
10.1. Publications 29
10.2. Websites 30
COMPANY PROFILES 31
Anat Foods (Pty) Ltd 31
Biscotti Biscuits (Pty) Ltd 33
Butterfield Holdings (Pty) Ltd 35
Cape Cookies CC 37
Daisy Health Foods CC 39
East Balt South Africa 41
Famous Brands Ltd 43
Foodcorp (Pty) Ltd 49
Francor Bakkery Holdings (Pty) Ltd 53
Fresh Earth Gluten Free Bake House (Pty) Ltd 55
Goosebumps Distributors (Pty) Ltd 57
Grainfoods Bakeries CC 59
In 2 Food Group (Pty) Ltd 61
Khayelitsha Cookies CC 63
Le Petit Pain (Pty) Ltd 65
Mango Ginger Bakery and Coffee Shop (Pty) Ltd 66
National Brands Ltd 67
Pioneer Voedsel (Pty) Ltd 70
Premier FMCG (Pty) Ltd 74
Retsol Stores (Pty) Ltd 78
SD Mantell 80
Serrol Ingredients Pty Ltd 82
Sisun Food Investments CC 84
Tiger Brands Ltd 86
V Stricke 93
Vovo Telo Bakery and Cafe (Pty) Ltd 94