The impressive economic growth of the non-resource intensive African economies such as Kenya, Rwanda, Uganda, and others in the West-African Economic and Monetary Union that includes Benin and Côte d’Ivoire is reflecting in the development of the dairy industry. Amidst the expansions by some of the prominent dairy companies, Africa dairy fermented products market has reached an impetus of profitability. The companies are now identifying opportunities in the region and striving to capitalize on the increasing demand influx. For instance, Zimbabwe’s dairy products manufacturer Dendairy announced its intention to expand its production capacity from 4.6 million liters to 8 million liters per month. In addition to this, the East Africa Dairy Development (EEDD) program is designed to boost the milk yields. While this is increasing the income of small-scale dairy farmers, it is also contributing to sufficing the growing demand for dairy fermented products such as kefir yogurt and sour cream that has a low level of beta glucan and are made from lactobacillus fermentation.

Majorly driven by the expanding urbanization and increased purchasing power, the regional demand for all the dairy products is growing, and the growth is translating to the Africa dairy fermented products market. The growing trend of a healthy diet has paved its way to African countries such as South Africa wherein people are showing a predilection for fermented soy milk which substantially improves the ecosystem of the intestinal tract in the body by enhancing the amount of probiotics. The forecast period foresees the proliferation of this trend in the developing economies of Africa such as South Africa.

Another factor driving the dairy fermented products market in Africa is the preference of consumers towards convenience food which is leading to the profitability of the fast-food market in the region. These fast foods contain fermented dairy products such as cheese. Henceforth, the expansion of the fast-food market in the region increases the Africa dairy fermented products market size which was evaluated at 11.16 billion as of 2018 and is projected to grow at a CAGR of 4.9% during the forecast period 2019-2025.

The Key Application in the Africa Dairy Fermented Products Market:

Despite the growing demand for cheese, yogurts, and other fermented dairy products in the region, the most lucrative application segment by type is found to be fermented cow milk, and it is estimated to grow at a healthy CAGR of 5.3% through to 2025. This is attributable to the abundance of small-scale dairy farmers that are supported by the EEDD program, which is majorly evident in Kenya. According to the Food and Agricultural Organization (FAO) of the United Nations (UN), main livestock in Kenya included 18 million cattle as of 2018, which is driving the fermented cow milk market. Furthermore, 14% of the weekly per capita consumption of food consumption is attributable to dairy and eggs that include fermented cow milk. Owing to the rapid urbanization and rising population, the consumption is poised to experience an upsurge during the forecast period.

On the other hand, Nigeria is witnessing an increase in demand for cow milk; however, the production is less. According to the recent stats by FAO, milk production in Nigeria was 585 thousand tons per year which suffices only 40% of the demand. Therefore, the upcoming years will observe an increase in the production of cow milk in the country which will further increase the fermented cow milk market size in the country.

Africa Dairy Fermented Products Market – Growth Drivers & Trends:

· The Growing Cheese Market in Countries Rising the Africa Dairy Fermented Products Market Revenues –

Even though the cost of raw materials of South Africa has shot up in countries such as South Africa, the price of the cheese hasn’t increased significantly. This is in order to cater to the rising middle-class population in the country which makes up for a major fraction of the customer base, which creates an optimized pricing environment for the vendors. Furthermore, the penetration of convenience food in the region is also increasing the sales of cheese. While South Africa houses players such as Parmalat that manufacture cheese indigenously, a few of the countries in the region are progressive marketplaces for import. The below table signifies the rise in the import value corresponding to the parent industry in some countries of Africa –

Table 1 – Import Value of Cheese (& Curd) in Countries of Africa

Sr. No.

Country

Import Value in 2018

(USD)

Year on Year Growth

(%)

1

Egypt

$121.44 million

13

2

Ghana

$2.51 million

3

3

Ethiopia

$1.894 million

27

4

Zimbabwe

$3.95 million

54

Import Value Data Source – International Trade Centre

Conspicuously, there is a rise in the import of cheese in some countries of Africa, which is aiding to the growth of the Africa dairy fermented products market.

· The Growth of Yogurt Consumption Expanding the Africa Dairy Fermented Products Market Size –

There is a discernible growth in the awareness of health and nutritional benefits from the consumption of yogurt is increasing the share of yogurt segment in Africa dairy fermented products market. Furthermore, the trend of drinkable yogurt is proliferating in South Africa, which is poised to observe growth in the upcoming years. On the other hand, the growing concern about cardiovascular diseases such as diabetes is leading to a trend of sugar-free yogurt. The players such as Parmalat are innovating with flavored yogurt named Fabulite, which is increasing their customer-base as the health-conscious fraction of the population prefers sugar-free eatables.

· The Sustainable Butter Market in the Region Increasing the Africa Dairy Fermented Products Market Scope –

The fall in the production of butter in countries such as South Africa is making Africa a progressive butter market for import, and more so when the dearth of indigenously manufactured butter is coupled with the rising demand. According to ITC, South Africa observed an import of $51.78 million worth butter in 2018 with the figure experiencing a year on year increase of a staggering 87%. Furthermore, Uganda’s import of butter observed growth at a stupendous 234% in 2018 while Egypt imported butter worth $196.82 million with an impressive year on year growth of 64% during the year. The growing import of butter in African countries evinces the possibilities for the Africa diary fermented products market companies for capacity expansion of butter manufacturing units to suffice the growing demand. The forecast period is poised to witness an increase in the intrinsic production of butter wherein the local players will strive to capitalize on the growing demand.

Africa Dairy Fermented Products Market – Competitive Landscape

The players in the Africa dairy fermented products market expanding their territories in order to leverage the demand influx in various countries are Danone Groupe SA, Ultimate Foods Inc, Chobani Inc, Sodiaal S.A., Nestlé S.A., General Mills, Kraft Foods Group, Inc., Yakult Honsha Co., Ltd.

·       In May 2017, Danone Groupe SA announced an investment of $25 million in its subsidiary at Ghana. The company introduced three new production capacities in the capital city Accra. The expansion was envisioned to fulfill the growing demand for dairy products in West Africa.

Talk to one of our sales representative about the full report by providing your details in the link below:

https://www.industryarc.com/support.php?id=18874

Related Reports:

a) Fermented Dairy Ingredients Market  

https://www.industryarc.com/Research/Fermented-Dairy-Ingredients-Market-Research-505924

b) Cheese Market

https://www.industryarc.com/Report/15006/cheese-market-analysis.html

Any other custom requirements can be discussed with our team, drop an e-mail to [email protected]  to discuss more about our consulting services.

To request a quote, provide your details in the below link:

https://www.industryarc.com/reports/request-quote?id=18874

Media Contact:

Mr. Venkat Reddy

Sales Manager          

Email: [email protected]

Contact Sales: +1-614-588-8538 (Ext-101)

About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.