Powdered creamer up in volume and value, research finds

Category growth may be attributed to the following factors:

• Increased demand in food service sector as milk prices increase;
  
• Reduced inflation in the category selling price and increased promotional activities in stores, encouraging consumers to buy more; and
  
• Increase in demand for larger pack sizes in industrial sectors, with a step up in supply to match.

Retail and wholesale channels continue to dominate the market with collective share of more than two-thirds of total volume share in 2014. The two channels are characterised by product promotion and marketing, with major brands dominating these channels.

The Gauteng region maintained the highest share for a single region. Some players mentioned that the category is losing share in coastal areas where consumers are substituting the category with white milk. Exports lost share due to increase in fuel prices, contributing to high transport costs.

The 1kg pack size dominates the powdered creamer market. The larger pack sizes (2kg or more), used mainly for further processing, increased share from 2013 to 2014.

Following a relatively conservative growth during 2014, the outlook for the category is optimistic for the short term. Growth in both retail and food service consumption are expected to drive future volume growth in this industry.