Manufacture of Bakery Products in South Africa 2021

Manufacture of Bakery Products

Bread is the second most important provider of energy in the national diet after maize products. While bread consumption in South Africa increased slightly in 2020, the South African Chamber of Baking said that the pandemic will likely result in a switch to other staples such as maize meal. While the manufacture of baked goods is a growing industry in South Africa, the pandemic has led to a number of artisanal bakeries shutting. Bigger bakeries have mostly benefited from consumers stocking up during the pandemic. However the industry is facing increasing costs, including higher flour prices, and the possible introduction of inspection services for the wheat sector, which could lead to higher bread prices.

Imports

South Africa imports more than 40% of its wheat requirements. Wheat production in the farming year to end June 2021 is expected to reach a 19-year high following favourable weather conditions in the Western Cape. While this will result in lower imports, the bread price will likely not come down as wheat prices are largely dependent on developments in the global market and on domestic currency movements.

Opportunities for SMEs and Entrepreneurs

The bakery industry is seen by government as a growth industry as baked goods are sold by all food retail outlets. While big companies dominate the industry, there are opportunities for entrepreneurs to start local community or home-based bakeries. Bakery equipment for startup bakeries is available from a number of suppliers of new and reconditioned equipment.

Report Coverage

This report focuses on the manufacture of bakery products and includes information on the state of the sector influencing factors and the major players, including their recent results, developments and corporate actions. There are profiles of 27 companies Including the four largest players, Pioneer Foods (Sasko and Duens bakeries), Tiger Brands (Albany bakeries), Premier Foods (Snowflake and Blue Ribbon flour and bakeries) and RCL Foods (Sunbake bakeries). Other profiled companies include bakeries such as Fournos, flour mills such as VKB and Retsol, owner of the Corner Bakery, which operates in petrol station forecourts.