Manufacture of Bakery Products in South Africa 2017


NEW YORK, Dec. 5, 2017 /PRNewswire/ -- Manufacture of Bakery Products :

According to the South African Chamber of Baking, total bread production increased in 2016 from 171 million loaves baked in January 2016 to 182 million loaves in December 2016. This was as a result of consumers replacing maize meal with bread because of the higher price of maize products brought about by severe drought and the weaker South African rand. Stakeholders believe this might change, however, as the recent bumper maize crop has now resulted in cheaper maize products. The current drought in the Western Cape where more than 60% of South Africa's wheat is planted has also meant that approximately 51% of the country's wheat is imported at import parity prices.

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Value of the Sector:The four major bakeries, Pioneer foods, Tiger Brands, Premier Foods and Foodcorp control an estimated 70% of the domestic bread market which is valued at R22bn per annum and accounts for 63.5% of all sales in the bakery sector. The biscuit market has annual sales of about R4.5bn with sales of savoury biscuits reaching R1.5bn in 2016 and those of sweet biscuits, R3.1bn. A growing segment is the sale of par-baked products that are partially baked at central facilities and then flash frozen for distribution to stand-alone and in-house bakeries in retail stores.

Report Coverage:

This report focuses on the manufacture of bakery products that include different types of bread and rolls, muffins, cakes, pastries, biscuits, rusks, doughnuts and savoury biscuits. Profiles are provided for 27 industry players including Butterfield Bakery, the largest bakery franchise in South Africa. Butterfield has various business models for prospective franchisees to choose from, such as a small-scale rural bread bakery, a high street upmarket confectionery bakery deli, or an automated industrial plant bakery catering to the wholesale market. Also profiled is the Rhodes Food Group, which in October 2016 acquired Ma Baker Pies for R212m in an effort to strengthen its position in South Africa's growing pie and pastry market.

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