An Overview of Savory and Sweet Snacks in South Africa

Simba snacksWith respect to the trends, the current and retained volume of growth rates for snacks slightly decreased in the year 2012. The decrease can partly be accounted for by the increasing rate of maturity. Also, the general reduction in the purchasing power of consumers caused many South Africans to cut their spending on indulgence or non-essential products such as savory snacks and sweets. The rising health awareness among consumers also hampered the demand for specific types of products. Consumers have become more aware of the negative health consequences associated with consumption of such snacks.

In terms of competitive landscape, a strong lead in savory and sweet snacks in the year 2012 was maintained by the Simba Group Limited. It claimed a 49 percent value share with a wide portfolio covering most categories and including well established brand like Lay’s Simba, O’Grady’s, Fritos, Doritos, and Cheetos. In combination with sustained investment in brand promotion and extensive distribution network, the portfolio’s strength allowed Simba to lead in supply and distribution of extruded snacks, crisps/chips, pretzels, nuts and corn chips. The second leading overall player with a 23 percent value share was National Brands Limited. Some of the leading competitors in savory and sweet snacks include Woolworths, SAD Holdings Limited, Tiger Brands, and Proctor & Gamble.

In terms of prospects, it is expected that the snack value share will continue progressing over the forecast period. In addition to population increases and economic improvements in South Africa, the increasing tendency of consumers to snack between meals will drive the increasing demand. Growth in retail sales will also be driven by new launches, particularly of healthier food products. Finally, promotions and other marketing strategies will also drive sales growth.

 

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