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Manufacture of Bakery Products in South Africa 2019

Manufacture of Bakery Products in South Africa 2019

  • September 2019
  • 117 pages
  • ID: 3630065
  • Format: PDF
  • By Who Owns Whom

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Manufacture of Bakery Products:
Bread is the second most important staple food in South Africa after maize meal. With the price of maize products decreasing following a good maize harvest, many people reverted to maize meal, resulting in bread consumption in South Africa declining slightly since May 2018. The manufacture of baked goods is a growing industry, and artisanal and in-store bakeries are on the increase. Higher-income consumers have variety and health requirements, while there are opportunities for emerging bakers to enter local informal markets.

Rising Prices:
From April 2017 to April 2019, the prices of 700g loaves only increased by 2.7% for white bread and 2.95% for brown, according to the South African Chamber of Baking. But more recent consumer price inflation figures show significant price increases. July 2019 inflation statistics indicate that bread and cereal prices increased by 7.9% year-on-year, while August figures showed an 8.6% increase, contributing to upward inflationary pressure. Some of the major retailers continue to subsidise bread loaves to make bread affordable to financially-stressed customers.

Report Coverage:
The focus of this report is the manufacture of bakery products in South Africa. It includes information on the state of the industry and the factors that influence it, including maize and wheat production and price trends, as well as the recent performance of the industry’s major players. There are profiles of 30 companies which include significant players such as Tiger Brands, RCL Foods and Pioneer. Profiles include VKB Agri Processors, which took full control of VKB Flour Mills (Kromdraai Group) Free State in 2018, and Krispy Kreme, which has opened doughnut mini-stores at selected locations countrywide including at Pick n Pay, Total Bonjour and Engen Quickshop stores. Smaller manufacturers such as Khayelitsha Cookies and Mango Ginger Bakeries are also featured.

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