Demand and Trend Analysis of UHT Milk in South Africa

UHT Milk Sales Outlook for South Africa (2024 to 2034)

A newly published industry analysis by Fact.MR reveals that sales of UHT milk in South Africa are anticipated to reach US$ 282.8 million in 2024. The market in the country has been calculated to increase at 6.5% CAGR and reach a value of US$ 530.8 million by the end of 2034.

Dearth of cold-chain infrastructure and cold-storage facilities in many parts of South Africa are pushing demand for UHT milk since it can be stored longer without any requirements for well-established refrigeration systems. In addition, the country's increasing population is widening the application scope of UHT milk to match the surging demand for dairy products as one of the pivotal parts of a balanced diet.

Longer shelf life and convenience are driving an increase in UHT milk consumption in the country. Moreover, its extended shelf life compared to fresh milk is another market growth driver. Busy urban populations with hectic lifestyles are looking for ready-to-consume and convenient foods & beverages. This milk type matches consumer requirements by offering a nutritious and convenient ready-to-consume dairy option.

The increasing population of health-conscious consumers is leading to a rising preference for UHT milk as a nutritious dairy product. UHT milk, especially plant-based variants, matches consumers' requirements with dietary restrictions and allergies.

Despite several growth prospects, certain challenges are limiting the demand growth for UHT milk, such as higher prices of this dairy product in comparison to regular fresh milk, which is an issue in lower-income areas. Moreover, the availability of alternative daily options, including flavored beverages or powdered milk, is also posing challenges to market growth.

Report Attributes	Details
UHT Milk Sales in South Africa (2024E)	US$ 282.8 Million
Projected Sales (2034F)	US$ 530.8 Million
Demand Growth (2024 to 2034)	6.5% CAGR
Sales of Liquid UHT Milk (2024E)	US$ 138 Million
Revenue Share of B2C Distribution Channels (2034F)	57.2%
Key Companies Profiled	Clover Industries Ltd.; Aspen Nutritionals; Parmalat South Africa; Woodlands Dairy; Nestlé SA.

Which Market Trends are Contributing to High Demand for UHT Milk in South Africa?

“Growing Consumption of Plant-based UHT Milk”

Increasing preference for plant-based diets along with surging requirements for dairy alternatives are leading to rising demand for UHT milk. In addition, more manufacturers are coming up with a wide variety of plant-based UHT milk, such as almond, coconut, and soy to match constantly evolving consumer preferences. They are also concentrating on introducing flavored and functional UHT milk with some added minerals and vitamins. These specialty dairy products are manufactured for particular consumer groups, such as athletes and children.

“Preference for UHT Milk as Effective Alternative to Fresh Milk among Larger Consumer Base”

UHT milk is preferred significantly as a popular alternative to fresh milk among proactive consumers, such as armed forces, sportsmen, and even urban employees with hectic lifestyles. One of the pivotal factors responsible for the increasing demand for UHT milk is growing acceptability along with the active participation of well-established milk distributors towards these products. Some school feeding programs are also implemented in the county as an effective initiative for matching requirements for dairy products among school personnel and children from different provinces.

What is Restraining Demand Growth for UHT Milk to Some Extent?

“Fierce Competition from Suppliers of Fresh Milk”

Although easy storage and convenience in carrying and consumption are contributing to the increased popularity of UHT milk in South Africa. However, soaring rivalry from fresh milk manufacturers is limiting demand for UHT milk. In addition, there are some consumers, who are reluctant about the adoption of UHT milk in their diet, which is also posing challenges to market growth.

Category-wise Insights

There has been a significant increase in the demand for carton-packed UHT milk in the country owing to its easy storage, longevity, and convenience factors. In addition, the introduction of HDPE-packed UHT milk is also attracting a larger consumer base for its convenience in use and recyclability of containers after consumption.

Which Form of UHT Milk is Becoming More Popular in South Africa?

“Surging Consumer Preference for Liquid UHT Milk for its Convenience”

Attribute	Liquid
Segment Value (2024E)	US$ 138 Million
Growth Rate (2024 to 2034)	7.5% CAGR
Projected Value (2034F)	US$ 285 Million

According to the newly published study by Fact.MR, a market research and competitive intelligence provider, liquid form of UHT milk is expected to possess a 53.7% share of the country market by 2034. An increased demand for liquid UHT milk in packaged containers is attributed to its convenience in consumption. This ready-to-drink beverage is becoming one of the popular diary options among individuals from South Africa.

Which Distribution Channel is Preferred for Delivering UHT Milk in South Africa?

“High Use of B2C Distribution Platforms for UHT Milk Delivery”

Attribute	B2C
Segment Value (2024E)	US$ 159.8 Million
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 303.6% Million

B2C distribution sales are estimated to contribute 57.2% of the market share in South Africa by the end of 2034. The increasing popularity of online B2C sales channels is attributed to their ease of buying products, as more consumers are now spending a significant amount of time on the internet. They are actively involved in online shopping. Moreover, the growing penetration of the internet is also creating a strong online distribution platform for manufacturers of UHT milk in South Africa.

Competition Landscape

A newly published analysis by Fact.MR asserts that manufacturers of UHT milk are adopting several strategies for increasing their profit share. Moreover, they are also actively involved in putting efforts into enriching their product portfolio with the help of development while ensuring the launch of quality products. In addition, constant efforts are also made to manage supply chain systems to maintain their prominence.

For instance:

• Nestlé is offering nourished milk, which is manufactured with the use of UHT technology, to ensure the destruction of spillage enzymes and bacteria. It is using 6 layers of tamper-evident packaging materials to retain the product's quality throughout its shelf life.

Fact.MR provides detailed information about the price points of key manufacturers of UHT milk positioned across the country, sales growth, production capacity, and speculative technological expansion, in this newly published market report.

Segmentation of UHT Milk Study in South Africa

• By Type :

  • Full Cream
  • Skimmed
  • Semi-skimmed

• By Packaging :

  • Cartons
  • Bottles

• By Form :

  • Powder
  • Liquid

• By Source :

  • Animal-based
    • Cow Milk
    • Goat Milk
    • Buffalo Milk
    • Other
  • Plant-based
    • Almonds
    • Coconuts
    • Soy
    • Others

• By End-use Application :

  • Infant Formula
  • Dairy Products
    • Butter
    • Cheese
    • Yogurt
    • Milk Powder
    • Ice Cream
    • Others
  • Bakery & Confectionery
  • Milk & Milk-based Beverages
  • Retail Sales

• By Distribution Channel :

  • B2B
  • B2C
    • HORECA
    • Specialty Stores
    • Modern Trade
    • Convenience Stores
    • Grocery Stores
    • Specialty Food Stores
    • Online Retailers
    • Other Distribution Channels

• By Province :

  • Gauteng
  • Western Cape
  • KwaZulu-Natal
  • Eastern Cape
  • Others