Transcript Food Bites - Ice Cream 2011

Food Bites
Ice Cream
Annual Market Quantification
September 2011
Setting the scene
Ice cream is a popular frozen dairy dessert and comes in different formats.
traditionally segmented the ice cream market into three segments:
• Non-Portioned (Bulk, Scoop/ Tub and Speciality Non-Portioned)
• Portioned (Cones, Cups, Sticks and Speciality Portioned)
• Soft-serve
BMI has
Non portioned ice cream is the most popular category in South African with almost two-thirds
of the market in the base year. Portioned and soft serve are distant seconds with less than
one fifth share each. Portioned ice cream is the most expensive ice cream type and
contributes a fair amount to value despite its lower volume contribution.
Ice cream is a retail driven product, with over half of South Africa’s ice cream production sold
in this channel. Soft serve ice cream is more popular in the foodservices market while
portioned and non-portioned are retail centred. A fair amount (8.4% in 2010) of ice cream is
sold via the informal sector.
Regional consumption is concentrated to metropolitan areas with Gauteng, KwaZulu-Natal and
Western Cape combined making up about three-quarters of the market.
2
2010 Category
Breakdown
Portioned
18.5%
Soft Serve
15.7%
Non-Portioned
65.8%
3
2010 Category
Distribution
Export
2.9%
Industrial
11.9%
Foodservices
Direct
22.4%
Wholesale
15.3%
Retail
47.5%
Ice cream remains a retail driven product with slightly more than half of the industry’s output
consumed via this channel. Foodservices direct is a distant second with approximately one
quarter share.
4
Annual Growth
Rates
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
2001
2005
Volume Growth
2010
5
Non-portioned makes
partial recovery
•
At 65.9% contribution to total ice cream volume, non-portioned ice cream remains by far the
most popular ice cream type.
• The category experienced 7.3% volume growth during the base year and recovered some of
the volume lost during the previous two years. Non-portioned ice cream is, however, not
expected to fully recover from the 2009 dip in the medium term.
• Scoop/tubs remain the most popular non-portioned ice cream type at 60.3% in 2010, while
bulk is second popular at 38.2% and speciality non-portioned remains a niche offering at
1.5% of the volume.
• The industry selling price of non-portioned ice cream went up 9.8% during 2010 as a result
of price increases seen in raw materials; sugar in particular.
In the medium term, innovation with non-portioned ice cream is expected to be centred around
the following;
• Focus on health and wellness as the health trend continues to gain momentum in the South
African market. Innovations will be on around the use of natural colourants, reduction in
sugar as well as trans and saturated fat content while maintaining product quality and taste.
• Flavour innovation has kept interest in the category alive over the years and is expected to
continue into the future, but the traditional flavours such as chocolate, strawberry and vanilla
are expected to continue to dominate.
6
Good growth for
portioned ice cream
•
Portioned ice cream is the second largest ice cream category achieving an 18.5% share
in 2010. The category represents 43.5% of the total market value. The category saw
good growth in 2010 and is expected to maintain above average growth over the short to
medium term and return to 2006 levels by 2012.
• Portioned ice cream experienced a 6.2% price increase during the base year and this
was led by increases in cones and sticks.
• Portion control had a major impact on stick pack sizes with volume gains seen in the 8090ml size and losses seen in the 100-180ml size.
The good growth seen within the portioned ice category during 2010 could be attributed to
the following;
• In 2010 Nestlé extended their Milo and Nesquick brands through the introduction of stick
multipack ice cream in these brands.
• Nestlé also launched the bubble gum and vanilla flavour Ben 10 cups during 2010.
• Television adverts by the category volume leaders such as Unilever’s new Magnum
White Almond as well as Nestlé's range of adverts for their ‘sneak in an ice cream’
campaign. These were coupled with below the line promotional activity such as the
Magnum White Almond pleasure card promotion, while the ‘sneak in an ice cream’
campaign also involved in-store promotions.
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High prices for soft
serve
•
•
•
Soft serve remains the smallest of the ice cream categories with a 15.7% and 8.3%
volume and value share respectively.
The category experienced the highest price increase during the base year (12.3%) and
went above the R10.00 per litre mark, with price increases being driven by the
foodservices channel, the most popular soft serve distribution channel.
The outlook for the soft serve market is positive, with 3.4% growth expected in 2011 and
1.5% in 2012.
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Food Bites
Ice Cream
For more information,
contact:
Jan Wegelin
Research Manager
Tel: (011) 615 7000
Mobile: 082 938 0744
www.bmi.co.za