Potential for growth in UHT market in South Africa

A new report on the South African milk market by Persistence Market Research says that preservation of raw milk continues to be a challenge for consumers, pushing the country’s middle class to opt for durable UHT milk products.

The report, “In-Depth Analysis on South Africa’s UHT Milk Market: Rising Consumption of Semi-Skimmed UHT Milk to Drive Market’s Growth,” says that the South African UHT milk market is anticipated to reach $1.12bn by the end of 2019.

The demand for UHT milk in South Africa reached 601.7m liters in 2010.

Rising demand

The authors say that a growing population means a rising demand for dairy products, but increasing the production capacity of raw milk products won’t necessarily improve the supply-demand discrepancy.

Preservation of raw milk is still a challenge for consumers, pushing dairy companies toward more production of longer-lasting milk.

The report says that the lack of implementing technological advancements in the preservation techniques of packaged milk or raw milk has benefitted the growth of South Africa’s UHT milk market.

It adds that UHT milk takes advantage of some South African households having an irregular electricity supply, which it says has limited the number of refrigerators in some areas.