Definitions
Yoghurt is the result from milk that has been fermented and coagulated after a bacterial starter culture has been added to it in a controlled environment. The starter culture consists of microorganisms that ferment the milk. The result is creamy-textured yoghurt with a slightly tart taste.
Drinking yoghurt is not as coagulated as yoghurt but rather has a smoother and more liquid-like consistency, making it suitable for drinking.
The yoghurt market in South Africa has averaged 7% growth over the last decade despite one or two years of minimal growth, driven by the larger players and continued product innovation. Growth is assisted by the increasing demand for healthy, tasty foods. That yoghurt is also ready to eat, fits into the current 'on-the-go' culture.
More than 80% of all production is channelled directly to the retail sector and, within this channel, the products available to children continues to increase. This sector is made more attractive to the young consumers by linking to cartoon characters developed by the manufacturers.
The market is dominated by the smaller pack sizes, with the 125g in the last few years giving way to the 100g which now accounts for almost 40% of the volume. The 1kg accounts for a further quarter of the demand. The new 1.5kg pack size will further drive volume in the category but not as much value as the smaller pack sizes. Multipacks continue to be popular with the number of configurations available to the increasing consumers
The drinking yoghurt market continues to increase in both volume and value. The product is increasingly available with many of the major chains carrying dealer brands. The market continues to be dominated by the larger, national players but many of the smaller dairies produce drinking yoghurts. Brand activity in the category is increasing as the smaller brands become more established.
Top end retail demand for drinking yoghurt is increasing and those players traditionally limited to the bottom end of the market are extending their reach into the retail sector.
Cartons have shown good volume growth which is expected to continue in the medium term. Rigid plastic remains the dominant pack type, where growth is seen within the single servings and family pack sizes. Both the 1 litre and 2 litres have shown growth, while the 300ml has increased at the expense of the 350ml pack size. Sachet usage has stabilised after some volume declines in the last few years.
BMI Research: Consumer Division offers annual tracking reports, in store observation services (ISOS), print ads promotional pricing and share of spend, liquor in store pricing (LISP), consumer research and commissioned research. For more information, go to www.bmi.co.za.
