South Africa: Market for Butter And Dairy Spreads 2024

Market Size for Butter And Dairy Spreads in South Africa

The South African butter and dairy spreads market contracted notably to $X in 2022, waning by -29.5% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption saw a relatively flat trend pattern. Over the period under review, the market hit record highs at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Exports of Butter And Dairy Spreads

Exports from South Africa

In 2022, shipments abroad of butter and dairy spreads increased by 8.6% to X tons, rising for the fourth year in a row after four years of decline. In general, exports, however, faced a deep setback. The most prominent rate of growth was recorded in 2014 with an increase of 40%. The exports peaked at X tons in 2012; however, from 2013 to 2022, the exports remained at a lower figure.

In value terms, butter and dairy spreads exports stood at $X in 2022. Over the period under review, exports, however, showed a slight curtailment. The growth pace was the most rapid in 2014 when exports increased by 40% against the previous year. As a result, the exports attained the peak of $X. From 2015 to 2022, the growth of the exports failed to regain momentum.

Exports by Country

Namibia (X tons) was the main destination for butter and dairy spreads exports from South Africa, with a 40% share of total exports. Moreover, butter and dairy spreads exports to Namibia exceeded the volume sent to the second major destination, Mozambique (X tons), twofold. The third position in this ranking was taken by Botswana (X tons), with a 17% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to Namibia stood at -13.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Mozambique (-1.7% per year) and Botswana (-7.2% per year).

In value terms, Namibia ($X), Mozambique ($X) and Botswana ($X) were the largest markets for butter and dairy spreads exported from South Africa worldwide, with a combined 66% share of total exports. Zambia, Mauritius, Malawi, Democratic Republic of the Congo and Zimbabwe lagged somewhat behind, together comprising a further 27%.

Among the main countries of destination, Democratic Republic of the Congo, with a CAGR of +11.6%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average butter and dairy spreads export price amounted to $X per ton, remaining relatively unchanged against the previous year. In general, export price indicated a buoyant increase from 2012 to 2022: its price increased at an average annual rate of +9.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and dairy spreads export price decreased by -11.1% against 2018 indices. The most prominent rate of growth was recorded in 2013 when the average export price increased by 71%. Over the period under review, the average export prices attained the peak figure at $X per ton in 2018; however, from 2019 to 2022, the export prices failed to regain momentum.

There were significant differences in the average prices for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was Mauritius ($X per ton), while the average price for exports to Botswana ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Namibia (+12.5%), while the prices for the other major destinations experienced more modest paces of growth.

Imports of Butter And Dairy Spreads

Imports into South Africa

In 2022, approx. X tons of butter and dairy spreads were imported into South Africa; shrinking by -14.9% on 2021. Overall, imports continue to indicate a abrupt curtailment. The pace of growth appeared the most rapid in 2015 when imports increased by 122%. Imports peaked at X tons in 2018; however, from 2019 to 2022, imports remained at a lower figure.

In value terms, butter and dairy spreads imports reduced slightly to $X in 2022. Over the period under review, imports recorded a mild contraction. The pace of growth was the most pronounced in 2018 when imports increased by 75% against the previous year. As a result, imports reached the peak of $X. From 2019 to 2022, the growth of imports remained at a somewhat lower figure.

Imports by Country

In 2022, New Zealand (X tons) constituted the largest butter and dairy spreads supplier to South Africa, accounting for a 39% share of total imports. Moreover, butter and dairy spreads imports from New Zealand exceeded the figures recorded by the second-largest supplier, Uruguay (X tons), twofold. Ireland (X tons) ranked third in terms of total imports with a 19% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from New Zealand amounted to -10.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Uruguay (+38.2% per year) and Ireland (-3.1% per year).

In value terms, the largest butter and dairy spreads suppliers to South Africa were New Zealand ($X), Uruguay ($X) and Ireland ($X), together accounting for 76% of total imports.

Uruguay, with a CAGR of +46.0%, saw the highest rates of growth with regard to the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average butter and dairy spreads import price stood at $X per ton in 2022, increasing by 12% against the previous year. Overall, import price indicated moderate growth from 2012 to 2022: its price increased at an average annual rate of +3.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and dairy spreads import price increased by +25.9% against 2020 indices. The most prominent rate of growth was recorded in 2017 an increase of 57%. Over the period under review, average import prices attained the maximum at $X per ton in 2018; however, from 2019 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was the UK ($X per ton), while the price for Ireland ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the UK (+17.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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