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South Africa UHT Milk Market: Stability in Retail Prices of UHT Milk to Drive Market at 11.2% CAGR during 2014-2019

The South African UHT milk market is mainly driven by its increasing acceptability among all classes and the ability of companies to maintain stable retail prices. UHT milk companies distribute their products through large (such as supermarkets and hypermarkets) and small retail formats (such as convenience stores and independent retailers), where the former generate bigger volume sales.
Published 28 August 2015

New York City, New York, August 28, 2015: According to a market research report published by Persistence Market Research, the UHT milk market in South Africa is expected to be driven by the stability in retail prices of UHT milk. The report, titled “South Africa Market Study on UHT Milk: Market Share of Semi Skimmed UHT Milk to Increase by 2019”, assesses the size of the UHT milk market in South Africa and estimates that the overall market will develop healthily at a CAGR of 11.2% during the period between 2014 and 2019. The report projects the UHT milk market in the region to be worth US$1185.3 million by 2019.

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UHT (Ultra-high temperature processing) milk is subjected to special thermal treatment that destroys the germs and increases the shelf life of the milk. The validity period of UHT milk ranges between three to six months due to ultra-pasteurization of milk at 135-150 degree Celsius. In the African region, South Africa is a major dairy consuming country where liquid milk accounts for more than 60% of the total dairy product consumption. The report points out that the long shelf-life of UHT milk has led to its increased adoption among the low-income population in the urban areas of the country.

The report further states that the stability in retail prices of UHT milk has contributed largely towards the growth of the UHT milk market in South Africa. The abundance of animal feed and fodder in South Africa has helped the dairy companies in the country to maintain stability in the production cost of dairy products such as UHT milk. Stable production costs of dairy products have led the companies to maintain an effective dairy chain and stable retail prices of the dairy products. The declining pasteurized milk market in South Africa has augmented the growth of the UHT milk market in the country.

However, the report mentions that the dominance of private label brands in the South Africa UHT milk market has created obstacles for the organized players in the market. The overall UHT milk market is also facing threat from the growing powdered milk market in the country.

The UHT milk market in South Africa has a huge opportunity to grow through the various school feeding schemes launched by the government to look after the nutritional needs of the school going children. The school feeding scheme, also known as the National School Nutrition Program, was introduced by the government in 2002 to respond to the problems of poor nutrition among school children. UHT milk figures as an important part of the diet served to the children covered under this program.

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The report cites that the growing demand for semi-skimmed milk is emerging as one of the latest trends in the UHT milk market in South Africa.

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Persistence Market Research (PMR) is a U.S.-based full-service market intelligence firm specializing in syndicated research, custom research, and consulting services. PMR boasts market research expertise across the Healthcare, Chemicals and Materials, Technology and Media, Energy and Mining, Food and Beverages, Semiconductor and Electronics, Consumer Goods, and Shipping and Transportation industries. The company draws from its multi-disciplinary capabilities and high-pedigree team of analysts to share data that precisely corresponds to clients’ business needs.

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