Flavoured milk favoured in South Africa

25 Apr 2014

BMi Research has released its annual quantification report on the flavoured milk market in South Africa for 2014. Flavoured milk volumes performed well, following the recession years of 2009 and 2010. The growth seen during the base year is a continuation of the positive trend set over the past few years.

It is suggested that the perceived health benefits and convenience of on-the-go consumption are key factors that underpin growth in flavoured milk volumes. In addition, flavoured milk is said to be an indulgent type product and thus fulfils this type of usage occasion too. It is believed that these factors, combined with innovative above and below-the-line advertising, have served to accelerate category growth and maintain the top-of-mind awareness of the category.

The usage of rigid plastic for this category is well-entrenched, with cartons making up the balance of the market. Within the plastic bottles category, the 300ml - 350ml pack range maintains the majority share of market volumes, these being single servings rather than the bulk take-home packs. Value continues to outperform volume for the category, but the gap between these two variables narrowed during 2013 as volumes gathered momentum and the growth in price per litre slowed down somewhat.

While flavoured milk maintains a niche, premium positioning, it is anticipated that the category will see healthy, consistent growth in the long term. Dairy producers who are looking to supply value-added products to deepen their profit margins are realising potential for further volume growth within flavoured milk volumes. It is hypothesised that this is relevant not just to the South African situation, but to global consumption as well.

Graph 1 - Channel distribution 2013

The majority share in the top end retail sector evidences the premium nature of flavoured milk. There are strides by players to harness further category potential within forecourts as a means of bolstering overall sales.

Graph 2 - Local Regional Distribution 2013

Gauteng, KwaZulu-Natal and the Western Cape collectively maintain the majority share of flavoured milk volumes, this trend being consistent with metropolitan population concentrations.

BMi Research specialises in consumer and industrial research in various sectors, including the retail market. It has more than 30 years' experience in the industry, across a wide range of methodologies and markets. For more information, go to www.bmi.co.za.