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manufacture breakfast cereals industry south africa

The Manufacture of Breakfast Cereals Industry in South Africa 2020

Natalie Bryden | South Africa | 08 June 2020

The Manufacture of Breakfast Cereals Industry in South Africa 2018

Sharmaine Hamer | South Africa | 25 October 2018

The Manufacture of Breakfast Cereals Industry in South Africa 2016

Yasmin Mahomedy | South Africa | 02 July 2016

The Manufacture of Breakfast Cereals Industry in South Africa 2014

Yasmin Mahomedy | South Africa | 30 October 2014

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Report Coverage

This report focuses on The Manufacture of Breakfast Cereals and includes information on the state of the sector and factors that influence it including consumer trends and the performance of the major players. There are profiles of 18 companies including the major players such as Pioneer Foods, Tiger Brands, Kellogg’s and Nestlé, as well as Future Life, which makes cereal with healthy additives and muesli manufacturers such Alpen Food and Paul’s Muesli.

Manufacture of Breakfast Cereals

South Africa’s breakfast cereals sector is increasingly mature and competitive and dominated by a few large companies. Despite two of the largest cereal manufacturers reporting higher revenues and volume improvements, operating profits and margins are under pressure. Protracted low GDP growth and high unemployment will continue to affect the industry as low income consumers substitute cereals for lower-priced maize options, and health-conscious consumers opt for breakfasts with higher protein content. The coronavirus pandemic will add further pressure as supply chains are strained and as consumers’ incomes decline.

Consumption

South Africa’s breakfast cereal consumption is low compared to developed markets, and the poor economy, high unemployment and decreasing disposable incomes are affecting consumer spending. During tough times, price-sensitive consumers switch cereals for cheaper carbohydrates such as bread or maize or between brands based on promotional prices, different pack sizes or cheaper variants.

Trends

There is rising demand for convenient on-the-go meals and snacks. Companies producing cereal and porridge have repackaged and reformulated their products to make them more portable and developed on-the-go breakfast products. Manufacturers are adding organic and healthy ingredients such as superfoods, quinoa and probiotics to breakfast cereals. Low carb, low sodium, gluten-free or grain-free breakfast cereal options are popular. Due to rising rates of obesity worldwide and a backlash against cereals containing high levels of sugar, manufacturers have introduced sugar-free or no-sugar-added cereals.

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The Manufacture of Breakfast Cereals Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

The Manufacture of Breakfast Cereals Industry in South Africa 2018-10-25

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2016-07-02

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2014-10-30

R 1 900.00(ZAR) estimated $100.20 (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 4
4.1. Local 4
4.1.1. Corporate Actions 6
4.1.2. Regulations 7
4.1.3. Enterprise Development and Social Economic Development 9
4.2. Continental 10
4.3. International 12
5. INFLUENCING FACTORS 14
5.1. Economic Environment 14
5.2. Price of Commodities 16
5.3. Coronavirus 16
5.4. Food Programmes 17
5.5. Rising Operating Costs 18
5.6. Pesticides 19
5.7. Genetically Modified Organisms (GMOs) 19
5.8. Environmental Concerns 20
5.9. Labour 21
5.10. Cyclicality 23
5.11. Technology, Research and Development (R&D) and Innovation 23
6. COMPETITION 24
6.1. Barriers to Entry 25
7. SWOT ANALYSIS 25
8. OUTLOOK 26
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 28
10.1. Publications 28
10.2. Website 28
APPENDIX 1 30
Summary of Notable Players 30
COMPANY PROFILES 32
AGT FOODS (PTY) LTD 32
ALPEN FOOD COMPANY SOUTH AFRICA (PTY) LTD 34
DAISY HEALTH FOODS CC 36
DATEX INTERNATIONAL CC 38
FUTURE LIFE HEALTH PRODUCTS (PTY) LTD 40
GLUTAGON (PTY) LTD 42
HEALTH CONNECTION WHOLEFOODS (PTY) LTD 43
HEARTLAND FOODS (PTY) LTD 45
KELLOGG COMPANY OF SOUTH AFRICA (PTY) LTD 47
LIBSTAR OPERATIONS (PTY) LTD 49
MONDELEZ SOUTH AFRICA (PTY) LTD 54
NESTLE (SOUTH AFRICA) (PTY) LTD 56
PAUL'S MUESLI (PTY) LTD 60
PIONEER VOEDSEL (PTY) LTD 62
SIZANI FOODS (PTY) LTD 66
TIA'S MUESLI CC 68
TIGER BRANDS LTD 70
VITAL HEALTH FOODS (PTY) LTD 75

Report Coverage

The Manufacture of Breakfast Cereals describes current conditions, the growing trend towards food with less sugar and salt and other factors influencing the success of the sector. This report provides comprehensive profiles of 12 industry players ranging from the three major companies to smaller companies such as Alpen Food Company and Futurelife, both of which are partly owned by Pioneer, as well as the recently-listed Libstar Holdings, whose subsidiary Ambassador Foods manufactures breakfast cereals and cereal bars.

The Manufacture of Breakfast Cereals

This report focuses on the manufacture of breakfast cereals in South Africa, which remains resilient in difficult conditions. The market is dominated by three large companies, Tiger Brands, Pioneer Foods and Kellogg’s South Africa. Statistics SA figures show that bread and cereal prices were 3.1% cheaper in June 2018 than they were in June 2017, indicating significant price pressure in a highly competitive market.

Challenging Conditions

This sector is operating under challenging trading conditions as a result of rising input costs and weaker consumer demand due to a lack of disposable income. Trends in the sector include increased demand for better nutrition in breakfast cereals and concerns over high sugar and carb content. Continued consumer preference for convenience has led to an increase in easy-to-use products such as breakfast biscuits and snack bars. The growing popularity of these products and rising health awareness among consumers are expected to influence demand and consumption of breakfast cereals.

Read More..
The Manufacture of Breakfast Cereals Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

The Manufacture of Breakfast Cereals Industry in South Africa 2020-06-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2016-07-02

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2014-10-30

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Supply Chain 2
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Corporate Actions 6
4.1.2. Regulations 6
4.1.3. Enterprise Development and Social Economic Development 8
4.2. Continental 9
4.3. International 10
5. INFLUENCING FACTORS 11
5.1. Economic Environment update 11
5.2. Rising Operating Costs and Declining Sales 12
5.3. Health issues and Genetically Modified Organisms (GMOs) 12
5.4. Availability of Land and Crops 12
5.5. Technology, Research and Development (R&D) and Innovation 13
5.6. Labour 13
5.7. Cyclicality 14
5.8. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 16
7. SWOT ANALYSIS 16
8. OUTLOOK 16
9. INDUSTRY ASSOCIATIONS 17
10. REFERENCES 17
10.1. Publications 17
10.2. Websites 18
APPENDIX 1 19
Summary of Major Players 19
COMPANY PROFILES 21
AGT FOODS (PTY) LTD 21
ALPEN FOOD COMPANY SOUTH AFRICA (PTY) LTD 23
DAISY HEALTH FOODS CC 25
DATEX INTERNATIONAL CC 27
FUTURE LIFE HEALTH PRODUCTS (PTY) LTD 29
HEARTLAND FOODS (PTY) LTD 31
KELLOGG COMPANY OF SOUTH AFRICA (PTY) LTD 33
LIBSTAR OPERATIONS (PTY) LTD 35
NESTLE (SOUTH AFRICA) (PTY) LTD 41
PIONEER VOEDSEL (PTY) LTD 45
TIGER BRANDS LTD 49
VITAL HEALTH FOODS (PTY) LTD 54

Report coverage

The Manufacture of Breakfast Cereals describes current conditions, the growing trend towards food with less sugar and salt and other factors influencing the success of the sector. Twelve industry players are profiled, ranging from the three major companies to smaller companies such as Alpen Food Company South Africa (Pty) Ltd, based in the Western Cape, which employs 54 people and is jointly owned by the Pioneer Food Company and Weetabix Limited, headquartered in the United Kingdom. Also profiled is FutureLife, which was originally established as “a social project to help improve the lives of malnourished and disadvantaged people in sub-Saharan Africa.” The company focuses on the concept of functional foods that provide ‘additional health benefits’ and in 2015 Pioneer Foods acquired a 50% shareholding in the company.

The Manufacture of Breakfast Cereals

This report focuses on the manufacture of breakfast cereals in South Africa, which has an estimated value of R4.3bn a year. The breakfast cereals market is dominated by three large companies, Tiger Brands, Pioneer Foods and Kellogg’s South Africa, who together have cornered more than 70% of the market.

Challenging conditions

Like other manufacturing sectors, this sector is operating under challenging trading conditions as a result of rising input costs and weaker consumer demand due to a lack of disposable income. Tough conditions have been exacerbated by the drought and recently introduced regulations that aim to limit the amount of salt and sugar used in breakfast cereals as well as the use of genetically modified wheat and maize. However, the functional food category has shown growth as more consumers become more health conscious and companies introduce new products in an attempt to remain competitive and gain market share.

Report coverage

The Manufacture of Breakfast Cereals describes current conditions, the growing trend towards food with less sugar and salt and other factors influencing the success of the sector. Twelve industry players are profiled, ranging from the three major companies to smaller companies such as Alpen Food Company South Africa (Pty) Ltd, based in the Western Cape, which employs 54 people and is jointly owned by the Pioneer Food Company and Weetabix Limited, headquartered in the United Kingdom. Also profiled is FutureLife, which was originally established as “a social project to help improve the lives of malnourished and disadvantaged people in sub-Saharan Africa.” The company focuses on the concept of functional foods that provide ‘additional health benefits’ and in 2015 Pioneer Foods acquired a 50% shareholding in the company.

Read More..
The Manufacture of Breakfast Cereals Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

The Manufacture of Breakfast Cereals Industry in South Africa 2020-06-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2018-10-25

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2014-10-30

R 1 900.00(ZAR) estimated $100.20 (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 1
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
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 12
5. INFLUENCING FACTORS 13
5.1. Economic Environment 13
5.2. Rising Operating Costs 14
5.3. Health Issues and Genetically Modified Organisms (GMOs) 14
5.4. Availability of Land and Crops 17
5.5. Technology, R&D and Innovation 17
5.6. Labour 18
5.7. Cyclicality 20
5.8. Environmental Concerns 20
6. COMPETITION 20
6.1. Barriers to Entry 21
7. SWOT ANALYSIS 22
8. OUTLOOK 22
9. INDUSTRY ASSOCIATIONS 22
10. REFERENCES 23
10.1. Publications 23
10.2. Websites 23
COMPANY PROFILES 25
AGT Foods (Pty) Ltd 25
Alpen Food Company South Africa (Pty) Ltd 27
Daisy Health Foods CC 29
Datex International CC 31
Future Life Health Products (Pty) Ltd 33
Heartland Foods (Pty) Ltd 35
Kellogg Company of South Africa (Pty) Ltd 37
Libstar Operations (Pty) Ltd 39
Nestle (South Africa) (Pty) Ltd 42
Pioneer Voedsel (Pty) Ltd 45
Tiger Brands Ltd 49
Vital Health Foods (Pty) Ltd 54

Extract

Despite challenges, the major players have been able to achieve revenue growth and increased profit performance...

Description

This report focuses on the manufacture of breakfast cereals, a sector that is extremely competitive and dominated by three large companies with a combined market share of approximately 78%.

The Manufacture of Breakfast Cereals Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $100.20 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.14 (USD)*

Historical Reports

The Manufacture of Breakfast Cereals Industry in South Africa 2020-06-08

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2018-10-25

R 1 900.00(ZAR) estimated $100.20 (USD)*

View Report Add to Cart

The Manufacture of Breakfast Cereals Industry in South Africa 2016-07-02

R 1 900.00(ZAR) estimated $100.20 (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 1
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 2
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 7
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 10
5.1. Economic Environment 10
5.2. Rising Input Costs 10
5.3. Genetically Modified Organisms (GMOs) 11
5.4. Availability of Land and Crops 11
5.5. Marketing 11
5.6. Labour 12
5.7. Cyclicality 13
5.8. Technology 13
5.9. Environmental Concerns 13
6. COMPETITION 13
6.1. Barriers to Entry 14
6.2. Research and Development (R&D) and Innovation 14
7. SWOT ANALYSIS 15
8. OUTLOOK 15
9. INDUSTRY ASSOCIATIONS 15
10. REFERENCES 16
10.1. Publications 16
10.2. Websites 16
ORGANOGRAM 17
COMPANY PROFILES 18
ALPEN FOOD COMPANY SOUTH AFRICA (PTY) LTD 18
DAISY HEALTH FOODS CC 20
DATEX INTERNATIONAL CC 21
FUTURE LIFE HEALTH PRODUCTS CC 23
KELLOGG COMPANY OF SOUTH AFRICA (PTY) LTD 25
LIBSTAR MANUFACTURING SOLUTIONS (PTY) LTD 26
NESTLE (SOUTH AFRICA) (PTY) LTD 28
PIONEER FOODS (PTY) LTD 30
POUYOUKAS FOODS (PTY) LTD 34
TIGER BRANDS LTD 36
VITAL HEALTH FOODS (PTY) LTD 40