Summary

In South Africa, the fourth-largest agricultural sector is milk production. Through food security and the profits from the export of dairy products, the milk and dairy industries significantly contribute to the South African economy. There are four main breeds in the dairy industry in South Africa: Holstein, Jersey, Ayrshire and Guernsey. There are a lot of distinct economic activities that make up this business, and there are big variations in the dairy product processing and farming practices. Raw milk, pasteurized milk and cream, fermented milk, long-life milk and cream, yoghurt, cheese and its by-product whey, milk powder, sweetened and unsweetened condensed milk, butter, and butter oil (ghee) are among the products produced and marketed in this way. When milk is first used and started to provide value, the dairy supply chain is initiated. The Covid 19 epidemic, which had impacted the majority of the typical value chain within the agricultural sector, had minimal effect on the dairy business, according to Milk South Africa. Under the pandemic conditions, dairy products have fared well in South Africa, where the majority of raw milk supply was directed toward the dairy product industry. Aside from the Covid-19 pandemic, there were other issues in the dairy business. At the raw milk production level, producers were getting very low prices from processors because of things like a greater number of suppliers, imports of ultra high temperature (UHT), and a lack of product differentiation.

According to the research report "South Africa Dairy Products Market Overview, 2029," published by Bonafide Research, the South Africa Dairy Products Market is expected to grow with more than CAGR of 5.50% from 2024 to 2029. Rising urbanization and a burgeoning middle class in South Africa are increasing disposable earnings. Consequently, this is driving a change in the food landscape toward more complex and varied options, with dairy products playing a major part. Nowadays, consumers are willing to spend money on dairy products that are handy, high-quality, and frequently premium rather than just the requirements. Convenient and portable dairy products are becoming more and more popular due to busy lifestyles and the rise in popularity of snacking. This includes individually packaged choices that are designed for consumption on-the-go, such as cheese sticks, yogurt pouches, and flavored milk drinks. These items are a great fit for the fast-paced lifestyles of many South Africans, as they are appropriate for quick nibbles or meal alternatives. The dairy sector in South Africa is well-established and has considerable local production capacity. This guarantees a consistent flow of reasonably priced, fresh dairy products, making them easily available to a broad spectrum of customers. Further enhancing distribution and product availability include the dominance of contemporary supermarkets and convenience stores, as well as upgraded cold chain infrastructure. The government of South Africa provides active support to the dairy industry through a number of programs designed to increase domestic output and encourage consumption. This covers funding, initiatives for research and development, and advertising campaigns. In addition, as customers' concerns about sustainability grow, the dairy industry is adapting by implementing greener methods at every stage of the supply and manufacturing process.

Based on the product type, the market is divided into Milk, Cheese, Yogurt, Desserts, Butter, cream, others. Milk is the popular choice but yogurt is also gaining its importance. Yogurt is becoming seen by consumers as a healthful food option. Its appeal is further enhanced by its inclusion of vital nutrients like calcium and protein, as well as its relationship with intestinal health thanks to the probiotics. This fits perfectly with South Africa's expanding tendency toward wellness and health. Yogurt products in South Africa are available in a broad range of flavors to suit different tastes. The wide range of alternatives, which includes more daring options like mango chili and banana passion fruit as well as more traditional flavors like strawberry and vanilla, keeps customers interested and promotes discovery.

Based on the Distribution channel, the market is divided into Supermarket/Hypermarket, Specialty Stores, Convenience Stores, online retail, Others. Supermarket/Hypermarket is leading the market. The market for dairy products in South Africa is being greatly impacted by the growth of online retail. For South Africans who lead hectic lives, online grocery shopping provides unparalleled convenience. Spending less time and less stress shopping from home and avoiding long lines at the grocery store allows consumers to browse products and have them delivered right to their door. This is especially relevant to the increasing number of people living in cities with busy schedules. Online merchants usually provide appealing promotions, such as discounts, free delivery, and bundled packages, along with competitive rates. Since of its price sensitivity, online dairy purchases are more affordable for those that are budget conscious.

Considered in this report:
• Geography: South Africa
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report:
• South Africa Dairy Products market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By product type:
• Milk
• Cheese
• Yogurt
• Desserts
• Butter
• cream
• Others

By Distribution channel:
• Supermarket/Hypermarket
• Specialty Stores
• Convenience Stores
• Online retail
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the coconut Products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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