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).
The Manufacture of Bakery Products Industry in South Africa
2021
Full Report
R 1 900.00(ZAR) estimated $108.67 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 76.07 (USD)*
Historical Reports
The Manufacture of Bakery Products Industry in South Africa 2019-09-30
R 1 900.00(ZAR) estimated $108.67 (USD)*
View Report Add to CartThe Manufacture of Bakery Products Industry in South Africa 2017-11-23
R 1 900.00(ZAR) estimated $108.67 (USD)*
View Report Add to CartThe Manufacture of Bakery Products Industry in South Africa 2015-11-30
R 1 900.00(ZAR) estimated $108.67 (USD)*
View Report Add to CartTable 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 |
