Regional integration boosts trade in East Africa
The five states of Kenya, Uganda, Tanzania, Rwanda and Burundi integrated into a US$10 billion common regional trading bloc and customs union on 1 July 2010. Kenya is the dominant economy in the trading bloc and has thus always been noted as the biggest trading partner in East Africa and the main attraction for international investors, who see it as a springboard into the rest of the region, by virtue of its size and strategic positioning. This presents numerous opportunities for investors to participate in the wider trading bloc.
Changing consumer lifestyles fed by rising middle class
Consumers’ lifestyles are changing and people are adopting a more social, outgoing lifestyle. Many more people eat out than ever before, as a direct result of their newfound affluence. It is also evident that the middle class is growing at a rapid pace and more Kenyans are aspiring to more comfortable and affluent lifestyles. The significance of this trend, particularly to the consumers, is that they now have more options in terms of what they can or want to consume. It also means that they are more willing to spend more on any given purchase and are becoming less and less price conscious.
Price : US$6500
Growth of retail boosting the sector
Retail has become big business in Kenya. A number of previously small operators have grown to become massive retail chains. This new development has sparked a growth in consumption of packaged food, as this is probably the biggest single category of products sold in the retail outlets, mainly supermarkets and hypermarkets. Consumers are consuming more, and shifting their purchases from the smaller outlets to the big retail chains. For instance, bread, which was typically purchased in small roadside kiosks, is now purchased in bigger volume from supermarkets. This trend is set to grow in the forecast period, and more and more chains are likely to emerge. Consumers will continue to purchase from these stores, and except amongst the urban poor, consumption is likely to be channeled through this avenue.
High fuel and production costs threaten to curtail growth in value sales
The current high inflation rate that has taken root in the Kenyan economy has brought with it increased fuel and production costs that have affected all the major industries. The Kenyan shilling having dropped in value vis-à-vis the US dollar has made the cost of fuel, and hence energy and transportation as well as importation costs, much higher, compelling manufacturers and other producers to incur higher production costs, most of which are passed on to the consumer. Players in consumer health have so far absorbed the inflationary pressure for the sake of the consumer, but come January 2012, if this situation is not reversed, the price of consumer health products will have to rise. This will in turn have a negative effect on sales.
The five states of Kenya, Uganda, Tanzania, Rwanda and Burundi integrated into a US$10 billion common regional trading bloc and customs union on 1 July 2010. Kenya is the dominant economy in the trading bloc and has thus always been noted as the biggest trading partner in East Africa and the main attraction for international investors, who see it as a springboard into the rest of the region, by virtue of its size and strategic positioning. This presents numerous opportunities for investors to participate in the wider trading bloc.
Changing consumer lifestyles fed by rising middle class
Consumers’ lifestyles are changing and people are adopting a more social, outgoing lifestyle. Many more people eat out than ever before, as a direct result of their newfound affluence. It is also evident that the middle class is growing at a rapid pace and more Kenyans are aspiring to more comfortable and affluent lifestyles. The significance of this trend, particularly to the consumers, is that they now have more options in terms of what they can or want to consume. It also means that they are more willing to spend more on any given purchase and are becoming less and less price conscious.
Kenya Packaged Food Industry Report
Published: February 2012Price : US$6500
Growth of retail boosting the sector
Retail has become big business in Kenya. A number of previously small operators have grown to become massive retail chains. This new development has sparked a growth in consumption of packaged food, as this is probably the biggest single category of products sold in the retail outlets, mainly supermarkets and hypermarkets. Consumers are consuming more, and shifting their purchases from the smaller outlets to the big retail chains. For instance, bread, which was typically purchased in small roadside kiosks, is now purchased in bigger volume from supermarkets. This trend is set to grow in the forecast period, and more and more chains are likely to emerge. Consumers will continue to purchase from these stores, and except amongst the urban poor, consumption is likely to be channeled through this avenue.
High fuel and production costs threaten to curtail growth in value sales
The current high inflation rate that has taken root in the Kenyan economy has brought with it increased fuel and production costs that have affected all the major industries. The Kenyan shilling having dropped in value vis-à-vis the US dollar has made the cost of fuel, and hence energy and transportation as well as importation costs, much higher, compelling manufacturers and other producers to incur higher production costs, most of which are passed on to the consumer. Players in consumer health have so far absorbed the inflationary pressure for the sake of the consumer, but come January 2012, if this situation is not reversed, the price of consumer health products will have to rise. This will in turn have a negative effect on sales.
Table of Contents
Packaged Food in Kenya - Industry Overview
EXECUTIVE SUMMARY
Regional integration boosts trade in East Africa
Changing consumer lifestyles fed by rising middle class
Growth of retail boosting the sector
High fuel and production costs threaten to curtail growth in value sales
FOODSERVICE – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
IMPULSE AND INDULGENCE PRODUCTS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
NUTRITION/STAPLES – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
MEAL SOLUTIONS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
MARKET DATA
Table 35 Sales of Packaged Food by Category: Volume 2006-2011
Table 36 Sales of Packaged Food by Category: Value 2006-2011
Table 37 Sales of Packaged Food by Category: % Volume Growth 2006-2011
Table 38 Sales of Packaged Food by Category: % Value Growth 2006-2011
Table 39 GBO Shares of Packaged Food 2006-2010
Table 40 NBO Shares of Packaged Food 2006-2010
Table 41 NBO Brand Shares of Packaged Food 2007-2010
Table 42 Sales of Packaged Food by Distribution Format: % Analysis 2006-2011
Table 43 Sales of Packaged Food by Category and Distribution Format: % Analysis 2011
Table 44 Forecast Sales of Packaged Food by Category: Volume 2011-2016
Table 45 Forecast Sales of Packaged Food by Category: Value 2011-2016
Table 46 Forecast Sales of Packaged Food by Category: % Volume Growth 2011-2016
Table 47 Forecast Sales of Packaged Food by Category: % Value Growth 2011-2016
SOURCES
Summary 1 Research Sources
Packaged Food in Kenya - Company Profiles
Bidco Oil Refineries Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Bidco Oil Refineries: Competitive Position 2010
Brookside Dairy Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Brookside Dairy Ltd: Competitive Position 2010
Kenchic Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Kenchic Ltd: Competitive Position 2010
Vital Camel Milk Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Baby Food in Kenya - Category Analysis
HEADLINES
TRENDS
Baby food has been boosted immensely by a recent baby boom, with several thousand children being born between 2010 and 2011. Official statistics estimate that over half the Kenyan population is under the age of 18, and with infant mortality dropping and better access to healthcare, that figure is likely to rise even higher over the forecast period.
COMPETITIVE LANDSCAPE
Leading brands in baby food include products from Nestlé Foods Kenya Ltd and Tiger Brands Ltd. Other players are Proctor and Allan E A Ltd,
PROSPECTS
The government will continue to encourage exclusive breastfeeding for the first six months. This means that baby food is likely to be affected since more and more mothers will wait until then to start offering their babies other foods.
CATEGORY DATA
Table 48 Sales of Baby Food by Category: Volume 2006-2011
Table 49 Sales of Baby Food by Category: Value 2006-2011
Table 50 Sales of Baby Food by Category: % Volume Growth 2006-2011
Table 51 Sales of Baby Food by Category: % Value Growth 2006-2011
Table 52 Soy-based Vs Dairy-based Special Baby Milk Formula % Breakdown 2010
Table 53 Baby Food Company Shares 2006-2010
Table 54 Baby Food Brand Shares 2007-2010
Table 55 Sales of Baby Food by Distribution Format: % Analysis 2006-2011
Table 56 Forecast Sales of Baby Food by Category: Volume 2011-2016
Table 57 Forecast Sales of Baby Food by Category: Value 2011-2016
Table 58 Forecast Sales of Baby Food by Category: % Volume Growth 2011-2016
Table 59 Forecast Sales of Baby Food by Category: % Value Growth 2011-2016
Baked Goods in Kenya - Category Analysis
HEADLINES
TRENDS
The category was affected by rising prices at the end of the review period due to economic pressure, inflation and a weakening Kenyan shilling. Prices of inputs increased by as much as 50% from 2010 due to these factors, and this had a detrimental effect on the category. However, demand for products is still on the rise, and as such the category continued to register growth.
COMPETITIVE LANDSCAPE
The category is dominated by local players. Significant marketing presence is felt by DPL Festive, with its Festive Bread brand, as well as the Elliot’s and Super Loaf brands. In terms of presence, these are the key brands in the category.
PROSPECTS
The economy is expected to take a beating over the next couple of years. Rising inflation and high costs of fuel and electricity are expected to take centre-stage in this new dispensation. Also, a depreciating local currency will affect imports of ingredients used in production and slow down the recovery process. However, demand will continue to rise as the middle class continues to grow, despite all the economic pressure, and the category should register growth in the coming years, with a 2% constant value CAGR.
CATEGORY DATA
Table 60 Sales of Baked Goods by Category: Volume 2006-2011
Table 61 Sales of Baked Goods by Category: Value 2006-2011
Table 62 Sales of Baked Goods by Category: % Volume Growth 2006-2011
Table 63 Sales of Baked Goods by Category: % Value Growth 2006-2011
Table 64 Packaged/Industrial Cakes: Single Portion vs Multi-pack % Breakdown by Type 2006-2011
Table 65 Baked Goods Company Shares 2006-2010
Table 66 Baked Goods Brand Shares 2007-2010
Table 67 Sales of Baked Goods by Distribution Format: % Analysis 2006-2011
Table 68 Forecast Sales of Baked Goods by Category: Volume 2011-2016
Table 69 Forecast Sales of Baked Goods by Category: Value 2011-2016
Table 70 Forecast Sales of Baked Goods by Category: % Volume Growth 2011-2016
Table 71 Forecast Sales of Baked Goods by Category: % Value Growth 2011-2016
Biscuits in Kenya - Category Analysis
HEADLINES
TRENDS
An increasing health focus has moved demand away from biscuits, which are perceived as unhealthy products. An increasing number of people are moving towards healthier snacks such as dried fruit or cereals.
COMPETITIVE LANDSCAPE
The category is dominated by local player Global Allied Industries Ltd with a 12% share in 2010. The company has invested heavily in marketing for its House of Manji biscuits, and the same was noticed by competitor Britannia Industries Ltd with the Britannia brand. In terms of presence, these are the most popular and widespread brands.
PROSPECTS
The category is expected to see a strong rebound with the economic recovery. Strong growth is expected over the forecast period. This, coupled with a strong competitive push from newly re-launched brands as well as the resultant backlash from more established competitors, will bolster the category.
CATEGORY DATA
Table 72 Sales of Biscuits by Category: Volume 2006-2011
Table 73 Sales of Biscuits by Category: Value 2006-2011
Table 74 Sales of Biscuits by Category: % Volume Growth 2006-2011
Table 75 Sales of Biscuits by Category: % Value Growth 2006-2011
Table 76 Biscuits Company Shares 2006-2010
Table 77 Biscuits Brand Shares 2007-2010
Table 78 Sales of Biscuits by Distribution Format: % Analysis 2006-2011
Table 79 Forecast Sales of Biscuits by Category: Volume 2011-2016
Table 80 Forecast Sales of Biscuits by Category: Value 2011-2016
Table 81 Forecast Sales of Biscuits by Category: % Volume Growth 2011-2016
Table 82 Forecast Sales of Biscuits by Category: % Value Growth 2011-2016
Breakfast Cereals in Kenya - Category Analysis
HEADLINES
TRENDS
Growth in 2011 was lower than in previous years and volume was down 1%, primarily because the economy was still in recovery mode from a tough year. In addition, rising fuel costs driven by crises in the Middle East and North Africa fuel-producing nations made business conditions even harder.
COMPETITIVE LANDSCAPE
The Breakfast Cereal Company (Kenya) Ltd with its Weetabix brand led sales of breakfast cereals at the end of the review period with 37% value share in 2010. The company has a strong brand name and presence, and a relatively longstanding presence. It is also perceived as a premium brand with slightly higher quality than locally-produced alternatives.
PROSPECTS
The category is set to be affected over the forecast period by expected adverse economic conditions. The rising cost of production brought on by a weakening Kenyan shilling, high costs of fuel and double-digit inflation will dampen imports, as well as hamper local production in the category.
CATEGORY DATA
Table 83 Sales of Breakfast Cereals by Category: Volume 2006-2011
Table 84 Sales of Breakfast Cereals by Category: Value 2006-2011
Table 85 Sales of Breakfast Cereals by Category: % Volume Growth 2006-2011
Table 86 Sales of Breakfast Cereals by Category: % Value Growth 2006-2011
Table 87 Breakfast Cereals Company Shares 2006-2010
Table 88 Breakfast Cereals Brand Shares 2007-2010
Table 89 Sales of Breakfast Cereals by Distribution Format: % Analysis 2006-2011
Table 90 Forecast Sales of Breakfast Cereals by Category: Volume 2011-2016
Table 91 Forecast Sales of Breakfast Cereals by Category: Value 2011-2016
Table 92 Forecast Sales of Breakfast Cereals by Category: % Volume Growth 2011-2016
Table 93 Forecast Sales of Breakfast Cereals by Category: % Value Growth 2011-2016
Canned/Preserved Food in Kenya - Category Analysis
HEADLINES
TRENDS
In 2011, demand for products in canned/preserved food continued to increase. However, there was also an increase in demand for fresh produce as opposed to canned/preserved produce due to improved access to fresh produce in retail outlets. Nevertheless this had a limited impact on retail volume growth as it was mainly among high-income consumers.
COMPETITIVE LANDSCAPE
The leading player in canned/preserved food in 2010 was Princess Tuna Ltd, a domestic manufacturer, with a retail value share of 17%. Its Princess brand was the leading brand in 2010, products under which are highly regarded by Kenyan consumers for their quality and value-for-money positioning.
PROSPECTS
Canned/preserved food is expected to grow by a retail volume CAGR of 6% over the forecast period due to continued increases in the base of middle-income consumers in Kenya and continued demand among high-income consumers. Also, the economy is expected to further recover from the global economic crisis that occurred over 2008 and 2009 and to thus perform well.
CATEGORY DATA
Table 94 Sales of Canned/Preserved Food by Category: Volume 2006-2011
Table 95 Sales of Canned/Preserved Food by Category: Value 2006-2011
Table 96 Sales of Canned/Preserved Food by Category: % Volume Growth 2006-2011
Table 97 Sales of Canned/Preserved Food by Category: % Value Growth 2006-2011
Table 98 Canned/Preserved Food Company Shares 2006-2010
Table 99 Canned/Preserved Food Brand Shares 2007-2010
Table 100 Sales of Canned/Preserved Food by Distribution Format: % Analysis 2006-2011
Table 101 Forecast Sales of Canned/Preserved Food by Category: Volume 2011-2016
Table 102 Forecast Sales of Canned/Preserved Food by Category: Value 2011-2016
Table 103 Forecast Sales of Canned/Preserved Food by Category: % Volume Growth 2011-2016
Table 104 Forecast Sales of Canned/Preserved Food by Category: % Value Growth 2011-2016
Cheese in Kenya - Category Analysis
HEADLINES
TRENDS
Cheese, as a product that is closely related to the billion shilling milk sector, is very much affected by economic fluctuations. Further, as a largely luxury product for the upper middle to upper classes of the economy, this product is not consumed regularly, and any fluctuations in the economy mean people stop consuming it.
COMPETITIVE LANDSCAPE
Leading cheese companies are New Kenya Co-operative Creameries Ltd (28% value share) and Sunpower Products Ltd (18% value share). They produce KCC Processed Cheddar Cheese and Brown’s respectively. Gebrüder Woerle GesmbH is ranked third with second positioned brand Happy Cow.
PROSPECTS
Cheese will make a strong recovery with the rebounding economy, and is predicted to display a 1% constant value CAGR compared to the -2% CAGR of the review period. As the economy recovers from the post-election turbulent period, we are likely to see growth compared to the past few years. As the economy is boosted by the East African Community free trade area and the increased penetration of modern supermarkets in the country, who offer a wider choice of cheese than independent small grocers.
CATEGORY DATA
Table 105 Sales of Cheese by Category: Volume 2006-2011
Table 106 Sales of Cheese by Category: Value 2006-2011
Table 107 Sales of Cheese by Category: % Volume Growth 2006-2011
Table 108 Sales of Cheese by Category: % Value Growth 2006-2011
Table 109 Spreadable Processed Cheese by Type: % Value Breakdown 2006-2011
Table 110 Cheese Company Shares 2006-2010
Table 111 Cheese Brand Shares 2007-2010
Table 112 Sales of Cheese by Distribution Format: % Analysis 2006-2011
Table 113 Forecast Sales of Cheese by Category: Volume 2011-2016
Table 114 Forecast Sales of Cheese by Category: Value 2011-2016
Table 115 Forecast Sales of Cheese by Category: % Volume Growth 2011-2016
Table 116 Forecast Sales of Cheese by Category: % Value Growth 2011-2016
Chilled Processed Food in Kenya - Category Analysis
HEADLINES
TRENDS
Consumption patterns in Kenya for chilled processed food did not see major change in 2011, resulting in similar volume growth as in the review period. The only significant sub-sector is chilled meat, whilst other types such as fish/seafood cannot compete with other formats such as canned products. The products target mainly the upper income consumers as cured meat is a fairly new and western type of food.
COMPETITIVE LANDSCAPE
Domestic company Farmers Choice Ltd continued to lead in chilled processed food in 2010, accounting for a dominant retail value share of 50%. The company has a long-standing position in Kenya and it is well established in chilled processed food. Its strong position is also due to the quality of its products, which is perceived to be higher than that of competing products among consumers.
PROSPECTS
Demand for chilled processed food is expected to continue to increase over the forecast period as a result of which the category is expected to grow by a retail volume CAGR of 4%. Demand is expected to be driven by changing tastes among consumers and increases in their level of disposable income as a result of which products in chilled processed food will become more affordable. In addition, increased availability in retail outlets as a result of improved refrigeration facilities is expected to help to boost the visibility of these products.
CATEGORY DATA
Table 117 Sales of Chilled Processed Food by Category: Volume 2006-2011
Table 118 Sales of Chilled Processed Food by Category: Value 2006-2011
Table 119 Sales of Chilled Processed Food by Category: % Volume Growth 2006-2011
Table 120 Sales of Chilled Processed Food by Category: % Value Growth 2006-2011
Table 121 Chilled Processed Food Company Shares 2006-2010
Table 122 Chilled Processed Food Brand Shares 2007-2010
Table 123 Sales of Chilled Processed Food by Distribution Format: % Analysis 2006-2011
Table 124 Forecast Sales of Chilled Processed Food by Category: Volume 2011-2016
Table 125 Forecast Sales of Chilled Processed Food by Category: Value 2011-2016
Table 126 Forecast Sales of Chilled Processed Food by Category: % Volume Growth 2011-2016
Table 127 Forecast Sales of Chilled Processed Food by Category: % Value Growth 2011-2016
Chocolate Confectionery in Kenya - Category Analysis
HEADLINES
TRENDS
Value growth was slower in 2011 compared with the period average due to the sharp increase in distribution costs as a result of high fuel prices. The weaker Kenyan shilling also contributed to higher import costs for key raw materials such as cocoa. Furthermore, inflation reduced consumers’ purchasing power and sales were negatively impacted by higher unit prices.
COMPETITIVE LANDSCAPE
Cadbury was the largest chocolate company in 2010 with key brands Fudge, Mint Choc and Dairy Milk. These brands have a low selling price (especially Fudge and Mint Choc) while offering quality (Dairy Milk is slightly more expensive and seen as a luxury product).
PROSPECTS
Sales forecasts are set improve with a 2% constant value CAGR predicted for the forecast period. This is likely to be due to further product innovations that will appeal middle-class urban consumers. Moreover, as cheap imports become more available in retail outlets, unit prices will remain fairly stable, thus increasing demand.
CATEGORY DATA
Table 128 Sales of Chocolate Confectionery by Category: Volume 2006-2011
Table 129 Sales of Chocolate Confectionery by Category: Value 2006-2011
Table 130 Sales of Chocolate Confectionery by Category: % Volume Growth 2006-2011
Table 131 Sales of Chocolate Confectionery by Category: % Value Growth 2006-2011
Table 132 Chocolate Tablets by Type: % Value Breakdown 2006-2011
Table 133 Chocolate Confectionery Company Shares 2006-2010
Table 134 Chocolate Confectionery Brand Shares 2007-2010
Table 135 Sales of Chocolate Confectionery by Distribution Format: % Analysis 2006-2011
Table 136 Forecast Sales of Chocolate Confectionery by Category: Volume 2011-2016
Table 137 Forecast Sales of Chocolate Confectionery by Category: Value 2011-2016
Table 138 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth 2011-2016
Table 139 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2011-2016
Dried Processed Food in Kenya - Category Analysis
HEADLINES
TRENDS
Volume growth in 2011 was in line with the previous year at 3%, although it was down 2 percentage point on the review period performance. This is due to the already large penetration of rice as a staple food in Kenya and the fact that growth is tied to population growth. Moreover, the low penetration of dessert mixes meant it had little impact on the overall sector’s growth.
COMPETITIVE LANDSCAPE
The leading companies in dried processed food in 2010 were CP Intertrade Co Ltd and AFN Enterprises with retail value shares of 15% and of 14% respectively. The category comprises of a mix of both local and international brands but the strongest brands are imported brands. Nevertheless, domestic brands such as Tastic Rice, Pearl Pishori Rice and Basmati Rice have also performed well.
PROSPECTS
Rice is expected to remain a staple part of Kenyan cuisine over the forecast period, which is expected to help to support the retail volume growth of dried processed food. However, if unit prices in rice increase over the forecast period substitute products such as ugali will continue to gain in prominence, especially if they are more affordable and locally produced. Ugali is a national staple and it is largely supplemented with rice among high-income consumers.
CATEGORY DATA
Table 140 Sales of Dried Processed Food by Category: Volume 2006-2011
Table 141 Sales of Dried Processed Food by Category: Value 2006-2011
Table 142 Sales of Dried Processed Food by Category: % Volume Growth 2006-2011
Table 143 Sales of Dried Processed Food by Category: % Value Growth 2006-2011
Table 144 Dried Processed Food Company Shares 2006-2010
Table 145 Dried Processed Food Brand Shares 2007-2010
Table 146 Sales of Dried Processed Food by Distribution Format: % Analysis 2006-2011
Table 147 Forecast Sales of Dried Processed Food by Category: Volume 2011-2016
Table 148 Forecast Sales of Dried Processed Food by Category: Value 2011-2016
Table 149 Forecast Sales of Dried Processed Food by Category: % Volume Growth 2011-2016
Table 150 Forecast Sales of Dried Processed Food by Category: % Value Growth 2011-2016
Drinking Milk Products in Kenya - Category Analysis
HEADLINES
TRENDS
Drinking milk products witnessed dampening supply, caused by drought conditions in the country. The further weakening of the shilling, as well as overall inflation in the economy are factors that also impacted the category.
COMPETITIVE LANDSCAPE
Leading brands in drinking milk products are Gold Crown and KCC. Newer brands in the long-life milk category include Daima Milk, Fresha milk from Githunguri Dairies and Molo Milk from Buzeki Dairies.
PROSPECTS
Drinking milk products will make a strong rebound with the improving economy and strong growth is expected over the forecast period with a 4% constant value CAGR. This coupled with a strong competitive push from newly re-launched brands as well as the resultant backlash from more established competitors will bolster the category.
CATEGORY DATA
Table 151 Sales of Drinking Milk Products by Category: Volume 2006-2011
Table 152 Sales of Drinking Milk Products by Category: Value 2006-2011
Table 153 Sales of Drinking Milk Products by Category: % Volume Growth 2006-2011
Table 154 Sales of Drinking Milk Products by Category: % Value Growth 2006-2011
Table 155 Drinking Milk Products Company Shares 2006-2010
Table 156 Drinking Milk Products Brand Shares 2007-2010
Table 157 Sales of Drinking Milk Products by Distribution Format: % Analysis 2006-2011
Table 158 Forecast Sales of Drinking Milk Products Products by Category: Volume 2011-2016
Table 159 Forecast Sales of Drinking Milk Products Products by Category: Value 2011-2016
Table 160 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2011-2016
Table 161 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2011-2016
Frozen Processed Food in Kenya - Category Analysis
HEADLINES
TRENDS
Retail volume in 2011 was down nearly 1 percentage point as consumers traded down for cheaper food items such as canned/food which are cheaper. In reaction, retailers and manufacturers significantly slashed prices in order to regain consumers but this had no impact on volume sales amid shrinking consumer’s confidence. As a result value sales decreased by 1% in 2011.
COMPETITIVE LANDSCAPE
Frozen processed food is dominated by local producers. The leading domestic companies in 2010 were Farmers Choice Ltd, Kenchic Ltd, Zuri Kenya and Njoro Canning Factory Ltd, all of which offer products under their own brands.
PROSPECTS
In terms of constant retail value growth, frozen processed food is expected to grow by a CAGR of -6% over the forecast period as production costs and prices are squeezed as a result of increasing competition. The introduction of new products from the re-established Kenya Meat Commission is expected to pose a threat to the leading players, in particular Farmers Choice Ltd, and to lead to a price war.
CATEGORY DATA
Table 162 Sales of Frozen Processed Food by Category: Volume 2006-2011
Table 163 Sales of Frozen Processed Food by Category: Value 2006-2011
Table 164 Sales of Frozen Processed Food by Category: % Volume Growth 2006-2011
Table 165 Sales of Frozen Processed Food by Category: % Value Growth 2006-2011
Table 166 Frozen Processed Food Company Shares 2006-2010
Table 167 Frozen Processed Food Brand Shares 2007-2010
Table 168 Sales of Frozen Processed Food by Distribution Format: % Analysis 2006-2011
Table 169 Forecast Sales of Frozen Processed Food by Category: Volume 2011-2016
Table 170 Forecast Sales of Frozen Processed Food by Category: Value 2011-2016
Table 171 Forecast Sales of Frozen Processed Food by Category: % Volume Growth 2011-2016
Table 172 Forecast Sales of Frozen Processed Food by Category: % Value Growth 2011-2016
Gum in Kenya - Category Analysis
HEADLINES
TRENDS
The category was affected by increasing production costs in 2011. The cost of sugar doubled from the previous year, and this affected production in the category. Furthermore, increasing electricity and fuel costs also had a negative impact on manufacturers’ margins.
COMPETITIVE LANDSCAPE
The category is dominated by The Wrigley Company (East Africa) Ltd, which accounted for over 80% of value sales in 2010. Its brands cut across the sugarised and sugar-free gum categories. It has a wide distribution network across the country, and several brands on offer, which underpins its dominance.
PROSPECTS
The expected rise in production costs and subsequent price increases will erode consumers’ disposable incomes in coming years. This will make things even more expensive for ordinary Kenyans, especially items that are generally considered luxuries, such as gum.
CATEGORY DATA
Table 173 Sales of Gum by Category: Volume 2006-2011
Table 174 Sales of Gum by Category: Value 2006-2011
Table 175 Sales of Gum by Category: % Volume Growth 2006-2011
Table 176 Sales of Gum by Category: % Value Growth 2006-2011
Table 177 Gum Company Shares 2006-2010
Table 178 Gum Brand Shares 2007-2010
Table 179 Sales of Gum by Distribution Format: % Analysis 2006-2011
Table 180 Forecast Sales of Gum by Category: Volume 2011-2016
Table 181 Forecast Sales of Gum by Category: Value 2011-2016
Table 182 Forecast Sales of Gum by Category: % Volume Growth 2011-2016
Table 183 Forecast Sales of Gum by Category: % Value Growth 2011-2016
Ice Cream in Kenya - Category Analysis
HEADLINES
TRENDS
Ice cream witnessed relatively consistent growth rates over 2011, with no major fluctuations or campaigns. There was a trend towards healthier living, which to a minor extent affected the category, as ice cream is perceived to be an “unhealthy” product.
COMPETITIVE LANDSCAPE
The leading company in 2010 was Glacier Products with 37% value share with Dairyland and Choc Stick being its most successful brands. It was followed by Nestlé Foods Kenya Ltd with its popular Dairymaid product.
PROSPECTS
Sales are expected to rise due to the increased size of the middle class, which is the driver of growth in any economy. In addition, the overall economy is expected to bounce back from the crisis of 2008 and 2009, to register stellar growth rates. Already, key economic sectors like tourism and tea are indicating that 2011 will be their best year yet.
CATEGORY DATA
Table 184 Sales of Ice Cream by Category: Volume 2006-2011
Table 185 Sales of Ice Cream by Category: Value 2006-2011
Table 186 Sales of Ice Cream by Category: % Volume Growth 2006-2011
Table 187 Sales of Ice Cream by Category: % Value Growth 2006-2011
Table 188 Ice Cream Company Shares 2006-2010
Table 189 Ice Cream Brand Shares 2007-2010
Table 190 Sales of Ice Cream by Distribution Format: % Analysis 2006-2011
Table 191 Forecast Sales of Ice Cream by Category: Volume 2011-2016
Table 192 Forecast Sales of Ice Cream by Category: Value 2011-2016
Table 193 Forecast Sales of Ice Cream by Category: % Volume Growth 2011-2016
Table 194 Forecast Sales of Ice Cream by Category: % Value Growth 2011-2016
Meal Replacement in Kenya - Category Analysis
TRENDS
Meal replacement products are negligible in Kenya, concerning only a small proportion of upper-income, Westernised consumers and Western foreigners.
Noodles in Kenya - Category Analysis
HEADLINES
TRENDS
Growth in the number of Chinese immigrants in Kenya due to major infrastructure and construction projects in the country has helped to support retail volume sales of noodles, despite the negative effects of the global economic downturn, as the majority of these consumers consume products in noodles.
COMPETITIVE LANDSCAPE
Noodles is highly fragmented and it is led by foreign importers, largely from the Far East. Esko & Co Ltd was the leading player in noodles in 2010 due to strong recognition among consumers of its138 Noodles and Instant Noodles brands, and its long-standing presence in the country.
PROSPECTS
The immigrant Chinese community in Kenya is expected to continue to increase over the forecast period and to further support retail volume sales of noodles. In addition, due to their increasingly hectic lifestyles, more consumers are expected to opt for products in noodles as a convenient meal option.
CATEGORY DATA
Table 195 Sales of Noodles by Category: Volume 2006-2011
Table 196 Sales of Noodles by Category: Value 2006-2011
Table 197 Sales of Noodles by Category: % Volume Growth 2006-2011
Table 198 Sales of Noodles by Category: % Value Growth 2006-2011
Table 199 Noodles Company Shares 2006-2010
Table 200 Noodles Brand Shares 2007-2010
Table 201 Sales of Noodles by Distribution Format: % Analysis 2006-2011
Table 202 Forecast Sales of Noodles by Category: Volume 2011-2016
Table 203 Forecast Sales of Noodles by Category: Value 2011-2016
Table 204 Forecast Sales of Noodles by Category: % Volume Growth 2011-2016
Table 205 Forecast Sales of Noodles by Category: % Value Growth 2011-2016
Oils and Fats in Kenya - Category Analysis
HEADLINES
TRENDS
The tough prevailing economic situation placed a strain on the prices of oils and fats. Prices almost doubled from 2010, primarily due to the weak shilling and the high cost of inputs into the category. It has become very expensive for many manufacturers to operate and they in turn pass that cost over to the consumer.
COMPETITIVE LANDSCAPE
Leading companies in oils and fats in 2010 were Bidco Oil Refinery Ltd Kenya, Kapa Oil Refineries Ltd Kenya and Unilever Kenya Ltd respectively. Bidco is the largest consumer oil manufacturing operation in East Africa, and it owns some of the most prolific and popular brands in the category including Ufuta, Kimbo, and Elianto. Within margarine, the biggest player is Unilever, with its Blue Band brand, but faces growing competition from emerging Gold Band from Bidco and Prestige from Kapa Oil.
PROSPECTS
Oils and fats will experience a continual increase in prices due to prevailing economic conditions. This will be mitigated by the high cost of production which will hamper demand high cost of fuel and the precarious condition of the Kenya Shilling all conspire to make it very expensive to operate in the category. Manufacturers will, naturally, pass on all these costs to the consumer.
CATEGORY DATA
Table 206 Sales of Oils and Fats by Category: Volume 2006-2011
Table 207 Sales of Oils and Fats by Category: Value 2006-2011
Table 208 Sales of Oils and Fats by Category: % Volume Growth 2006-2011
Table 209 Sales of Oils and Fats by Category: % Value Growth 2006-2011
Table 210 Oils and Fats Company Shares 2006-2010
Table 211 Oils and Fats Brand Shares 2007-2010
Table 212 Sales of Oils and Fats by Distribution Format: % Analysis 2006-2011
Table 213 Forecast Sales of Oils and Fats by Category: Volume 2011-2016
Table 214 Forecast Sales of Oils and Fats by Category: Value 2011-2016
Table 215 Forecast Sales of Oils and Fats by Category: % Volume Growth 2011-2016
Table 216 Forecast Sales of Oils and Fats by Category: % Value Growth 2011-2016
Other Dairy in Kenya - Category Analysis
HEADLINES
TRENDS
The economy went through a turbulent period in 2011 due to the weakening Kenya shilling and the skyrocketing cost of living and inflation. 2012 is an election year, and predictions are that the economy could take a further hit from this situation. As such, the performance of the sector over the past few years has been waning since the majority is imported.
COMPETITIVE LANDSCAPE
Nestlé Foods Kenya Ltd led other dairy with 44% value share, with Brookside Dairy Ltd and Eldoville Farm ranking second and third. The category has several local producers such as Brookside Dairy Ltd but is led by the local set up of a major multinational.
PROSPECTS
Other dairy is predicted to see strong growth with a constant value CAGR of 6% which is a good improvement on the review period constant value CAGR of -4%. This coupled with a strong competitive push from newly re-launched brands as well as the resultant lash back from more established competitors will bolster the sector. Also, strong demand arising from a growing middle class will impact on this. Though imports play a role in the sector, the expected further weakening of the Kenya shilling in 2012 due to the usual political turbulence in an election year means that importers will have high costs which they will pass on to consumers.
CATEGORY DATA
Table 217 Sales of Other Dairy by Category: Volume 2006-2011
Table 218 Sales of Other Dairy by Category: Value 2006-2011
Table 219 Sales of Other Dairy by Category: % Volume Growth 2006-2011
Table 220 Sales of Other Dairy by Category: % Value Growth 2006-2011
Table 221 Sales of Other Dairy by Distribution Format: % Analysis 2006-2011
Table 222 Forecast Sales of Other Dairy by Category: Volume 2011-2016
Table 223 Forecast Sales of Other Dairy by Category: Value 2011-2016
Table 224 Forecast Sales of Other Dairy by Category: % Volume Growth 2011-2016
Table 225 Forecast Sales of Other Dairy by Category: % Value Growth 2011-2016
Pasta in Kenya - Category Analysis
HEADLINES
TRENDS
Pasta registered retail value growth of 5% in 2011 as a result of increases in unit prices. Due to weakening of the domestic currency, the cost of imported products increased. In addition, the rate of inflation remained high in Kenya.
COMPETITIVE LANDSCAPE
The leading companies in pasta are all foreign companies. The leading player in 2010 was PIA Ltd with a retail value share of 13%.
PROSPECTS
Over the forecast period, there is expected to be development in terms of new products in pasta, with the introduction of products in other categories such as canned/preserved pasta and chilled/fresh pasta. There is also expected to be the introduction of products in different flavour variants for example pasta with cheese and spicy pasta.
CATEGORY DATA
Table 226 Sales of Pasta by Category: Volume 2006-2011
Table 227 Sales of Pasta by Category: Value 2006-2011
Table 228 Sales of Pasta by Category: % Volume Growth 2006-2011
Table 229 Sales of Pasta by Category: % Value Growth 2006-2011
Table 230 Pasta Company Shares 2006-2010
Table 231 Pasta Brand Shares 2007-2010
Table 232 Sales of Pasta by Distribution Format: % Analysis 2006-2011
Table 233 Forecast Sales of Pasta by Category: Volume 2011-2016
Table 234 Forecast Sales of Pasta by Category: Value 2011-2016
Table 235 Forecast Sales of Pasta by Category: % Volume Growth 2011-2016
Table 236 Forecast Sales of Pasta by Category: % Value Growth 2011-2016
Ready Meals in Kenya - Category Analysis
HEADLINES
TRENDS
Ready meals has benefited highly from the growing base and increasingly hectic lifestyles of middle-income consumers in Kenya, with an increasing number of these consumers opting for products in ready meals in order to avoid the inconvenience of home cooking. This is particularly true for young working professionals who do not have the time or inclination to prepare meals at home. Nevertheless, the vast majority of Kenyan consumers continued to prefer to prepare food at home in 2011.
COMPETITIVE LANDSCAPE
Kabazi Canners Ltd was the leading player in ready meals with a retail value share of 31% in 2010 due to its well-known Kenylon brand, products under which are perceived as being of better quality than those under similar competing brands among consumers.
PROSPECTS
The economic conditions present in Kenya towards the end of the review period are expected to prevail over the forecast period, meaning that current retail value growth is expected to continue to slowdown over the forecast period as unit prices are pushed down by decreasing production costs and fierce competition between manufacturers.
CATEGORY DATA
Table 237 Sales of Ready Meals by Category: Volume 2006-2011
Table 238 Sales of Ready Meals by Category: Value 2006-2011
Table 239 Sales of Ready Meals by Category: % Volume Growth 2006-2011
Table 240 Sales of Ready Meals by Category: % Value Growth 2006-2011
Table 241 Ready Meals: Vegetarian Vs Non-vegetarian % Breakdown by Type 2011
Table 242 Ready Meals Company Shares 2006-2010
Table 243 Ready Meals Brand Shares 2007-2010
Table 244 Sales of Ready Meals by Distribution Format: % Analysis 2006-2011
Table 245 Forecast Sales of Ready Meals by Category: Volume 2011-2016
Table 246 Forecast Sales of Ready Meals by Category: Value 2011-2016
Table 247 Forecast Sales of Ready Meals by Category: % Volume Growth 2011-2016
Table 248 Forecast Sales of Ready Meals by Category: % Value Growth 2011-2016
Sauces, Dressings and Condiments in Kenya - Category Analysis
HEADLINES
TRENDS
Demand for stock cubes and powders continued to increase in 2011 due to aggressive marketing of products in this category. Also demand for herbs and spices increased in 2011 with the introduction of new products and the entrance of new players. There was strong emphasis on healthy living and healthy eating habits based on consumption of herbs and spices in 2011.
COMPETITIVE LANDSCAPE
Unilever Kenya Ltd, with its wide variety of products, was the leading player in sauces, dressings and condiments in 2010. The company accounted for a retail value share of 13% due to its well known brands, which are widely recognised among consumers, and its intense and aggressive marketing strategy.
PROSPECTS
Volume growth will be flat in the forecast period as demand will reach a plateau due to maturity of the sector and lack of significant product innovation. The growing tendency among upper income consumers to use ready meals will also increasingly compete with sauces, dressings and condiments. In constant value terms however, the category will see positive growth as manufacturers offer more varieties at different price points in order to better satisfy different consumer groups.
CATEGORY DATA
Table 249 Sales of Sauces, Dressings and Condiments by Category: Volume 2006-2011
Table 250 Sales of Sauces, Dressings and Condiments by Category: Value 2006-2011
Table 251 Sales of Sauces, Dressings and Condiments by Category: % Volume Growth 2006-2011
Table 252 Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2006-2011
Table 253 Sauces, Dressings and Condiments Company Shares 2006-2010
Table 254 Sauces, Dressings and Condiments Brand Shares 2007-2010
Table 255 Sales of Sauces, Dressings and Condiments by Distribution Format: % Analysis 2006-2011
Table 256 Forecast Sales of Sauces, Dressings and Condiments by Category: Volume 2011-2016
Table 257 Forecast Sales of Sauces, Dressings and Condiments by Category: Value 2011-2016
Table 258 Forecast Sales of Sauces, Dressings and Condiments by Category: % Volume Growth 2011-2016
Table 259 Forecast Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2011-2016
Snack Bars in Kenya - Category Analysis
TRENDS
There is no demand for snack bars in Kenya as awareness is limited and a consumer base who can afford such products remains under-represented in the country.
Soup in Kenya - Category Analysis
HEADLINES
TRENDS
Even though products in soup are perceived to be healthy, most consumers choose to consume homemade soup, which is prepared by boiling bones to extract bone marrow and then adding other ingredients. Thus, in challenging economic times, products in soup are among the first products to be removed from the shopping list of consumers, as they opt for homemade soup. Therefore the continued negative effects of the global economic downturn led to decreased demand for soup in 2011.
COMPETITIVE LANDSCAPE
The leading player in soup in 2010 was Unilever Group, with its Knorr brand, followed by Monty & Totco Co Ltd with its Thai brand, Kabazi Canners Ltd with Kenylon and HJ Heinz Co with Heinz. The leading brands have been present for quite a long time with little competition, hence their strong position. Unilever Group leads in soup due to the wide array of flavour variants that it offers. It is also the longest standing company in soup in Kenya.
PROSPECTS
The economic conditions in Kenya at the end of the review period are expected to prevail over the first half of the forecast period, meaning that the cost of production and importation of products in soup is expected to increase. This will force middle-income consumers to trade down to more affordable products while low-income consumers seek alternative products such as homemade soup. Therefore, soup is expected to grow by a retail volume CAGR of -1% over the forecast period.
CATEGORY DATA
Table 260 Sales of Soup by Category: Volume 2006-2011
Table 261 Sales of Soup by Category: Value 2006-2011
Table 262 Sales of Soup by Category: % Volume Growth 2006-2011
Table 263 Sales of Soup by Category: % Value Growth 2006-2011
Table 264 Soup Company Shares 2006-2010
Table 265 Soup Brand Shares 2007-2010
Table 266 Sales of Soup by Distribution Format: % Analysis 2006-2011
Table 267 Forecast Sales of Soup by Category: Volume 2011-2016
Table 268 Forecast Sales of Soup by Category: Value 2011-2016
Table 269 Forecast Sales of Soup by Category: % Volume Growth 2011-2016
Table 270 Forecast Sales of Soup by Category: % Value Growth 2011-2016
Spreads in Kenya - Category Analysis
HEADLINES
TRENDS
The impact of drought and adverse economic growth led to rising operational costs. This coupled with the recent soaring fuel prices and rising cost of electricity caused inflationary pressure. This resulted in increased prices across the board, as the cost of living rose, eroding consumers’ purchasing power.
COMPETITIVE LANDSCAPE
Major producers in the category are Premier Foods, Jetlak Industries and Trufoods Ltd, with their Peptang, Nuteez and Zesta brands respectively. They are all local producers, making products in and for the local market.
PROSPECTS
The recent hike in fuel costs due to instability in oil-producing nations, as well as the price cap on fuel costs imposed by the government in late 2010, conspire to represent a potential threat to growth in the category in coming years. A moderate 1% CAGR is expected in both volume and current value terms over the forecast period.
CATEGORY DATA
Table 271 Sales of Spreads by Category: Volume 2006-2011
Table 272 Sales of Spreads by Category: Value 2006-2011
Table 273 Sales of Spreads by Category: % Volume Growth 2006-2011
Table 274 Sales of Spreads by Category: % Value Growth 2006-2011
Table 275 Spreads Company Shares 2006-2010
Table 276 Spreads Brand Shares 2007-2010
Table 277 Sales of Spreads by Distribution Format: % Analysis 2006-2011
Table 278 Forecast Sales of Spreads by Category: Volume 2011-2016
Table 279 Forecast Sales of Spreads by Category: Value 2011-2016
Table 280 Forecast Sales of Spreads by Category: % Volume Growth 2011-2016
Table 281 Forecast Sales of Spreads by Category: % Value Growth 2011-2016
Sugar Confectionery in Kenya - Category Analysis
HEADLINES
TRENDS
Major trends affecting the category included the high cost of materials such as sugar and high inflationary pressures, which forced many people to make radical lifestyle changes. These included reduced spending on non-essentials such as sugar confectionery.
COMPETITIVE LANDSCAPE
Kenafric Industries Limited and Kenya Sweets Ltd are the leading players thanks to their brands Lotta and KSL respectively. They are popular among children and sold by the unit by most grocery retailers in the country.
PROSPECTS
A 2% volume CAGR is expected over the forecast period. Demand will increase as consumers increasingly buy into on-the-go treats and affordable indulgence habits.
CATEGORY DATA
Table 282 Sales of Sugar Confectionery by Category: Volume 2006-2011
Table 283 Sales of Sugar Confectionery by Category: Value 2006-2011
Table 284 Sales of Sugar Confectionery by Category: % Volume Growth 2006-2011
Table 285 Sales of Sugar Confectionery by Category: % Value Growth 2006-2011
Table 286 Sugarised Vs Sugar-free Sugar Confectionery % Breakdown by Type 2011
Table 287 Pastilles, Gums, Jellies and Chews by Type: % Value Breakdown 2006-2011
Table 288 Sugar Confectionery Company Shares 2006-2010
Table 289 Sugar Confectionery Brand Shares 2007-2010
Table 290 Sales of Sugar Confectionery by Distribution Format: % Analysis 2006-2011
Table 291 Forecast Sales of Sugar Confectionery by Category: Volume 2011-2016
Table 292 Forecast Sales of Sugar Confectionery by Category: Value 2011-2016
Table 293 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2011-2016
Table 294 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2011-2016
Sweet and Savoury Snacks in Kenya - Category Analysis
HEADLINES
TRENDS
Sweet and savoury snacks has been affected by factors that have affected the entire Kenyan economy. Sharp increases in the cost of fuel as well as high inflation and weakening of the local currency have all conspired to raise the cost of production of sweet and savoury snacks. This cost has in turn been passed on to consumers.
COMPETITIVE LANDSCAPE
Sweet and savoury snacks is dominated by domestic players. Kenya Nut Co Ltd was the leading player in 2010, with a retail value share of 9%, followed by Galiaya Food Industries, also with a retail value share of 9%. Kenya Nut Co Ltd manufactures products in nuts while Galiaya Food Industries manufactures produces in nuts, crisps and popcorn. Due to weakening of the domestic currency, for some companies it has become more affordable to engage in domestic production than to import products, which is part of the reason why domestic players have performed well.
PROSPECTS
The economic conditions present in Kenya at the end of the review period are expected to prevail over the first half of the forecast period, which means that unit prices will continue to increase as will the cost of production and of importing products. There is also expected to be less artisanal activity as manufacturers move towards branding their products.
CATEGORY DATA
Table 295 Sales of Sweet and Savoury Snacks by Category: Volume 2006-2011
Table 296 Sales of Sweet and Savoury Snacks by Category: Value 2006-2011
Table 297 Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2006-2011
Table 298 Sales of Sweet and Savoury Snacks by Category: % Value Growth 2006-2011
Table 299 Popcorn by Type: % Value Breakdown 2006-2011
Table 300 Sweet and Savoury Snacks Company Shares 2006-2010
Table 301 Sweet and Savoury Snacks Brand Shares 2007-2010
Table 302 Sales of Sweet and Savoury Snacks by Distribution Format: % Analysis 2006-2011
Table 303 Forecast Sales of Sweet and Savoury Snacks by Category: Volume 2011-2016
Table 304 Forecast Sales of Sweet and Savoury Snacks by Category: Value 2011-2016
Table 305 Forecast Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2011-2016
Table 306 Forecast Sales of Sweet and Savoury Snacks by Category: % Value Growth 2011-2016
Yoghurt and Sour Milk Drinks in Kenya - Category Analysis
HEADLINES
TRENDS
Yoghurt and sour milk drinks experienced a dampening supply, caused by drought conditions in the country. The further weakening of the shilling, as well as overall inflation in the economy are factors that also impacted the category.
COMPETITIVE LANDSCAPE
Leading brands in the category are Brookside, Ilara and Tuzo. Newer products include Daima Milk, Fresha from Githunguri Dairies and Molo Milk from Buzeki Dairies.
PROSPECTS
Yoghurt and sour milk drinks will make a strong recovery with the rebounding economy. Positive constant value growth is expected with a CAGR of 1%, which is a vast improvement on the -4% constant value CAGR of the review period. This coupled with a strong competitive push from newly re-launched brands as well as the resultant lash back from more established competitors will bolster the category.
CATEGORY DATA
Table 307 Sales of Yoghurt and Sour Milk Drinks by Category: Volume 2006-2011
Table 308 Sales of Yoghurt and Sour Milk Drinks by Category: Value 2006-2011
Table 309 Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2006-2011
Table 310 Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth 2006-2011
Table 311 Soy-based vs Dairy-based Yoghurt % Breakdown 2010
Table 312 Yoghurt and Sour Milk Drinks Company Shares 2006-2010
Table 313 Yoghurt and Sour Milk Drinks Brand Shares 2007-2010
Table 314 Sales of Yoghurt and Sour Milk Drinks by Distribution Format: % Analysis 2006-2011
Table 315 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Volume 2011-2016
Table 316 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Value 2011-2016
Table 317 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2011-2016
Table 318 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth 2011-2016
Packaged Food in Kenya - Industry Overview
EXECUTIVE SUMMARY
Regional integration boosts trade in East Africa
Changing consumer lifestyles fed by rising middle class
Growth of retail boosting the sector
High fuel and production costs threaten to curtail growth in value sales
FOODSERVICE – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
IMPULSE AND INDULGENCE PRODUCTS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
NUTRITION/STAPLES – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
MEAL SOLUTIONS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data
MARKET DATA
Table 35 Sales of Packaged Food by Category: Volume 2006-2011
Table 36 Sales of Packaged Food by Category: Value 2006-2011
Table 37 Sales of Packaged Food by Category: % Volume Growth 2006-2011
Table 38 Sales of Packaged Food by Category: % Value Growth 2006-2011
Table 39 GBO Shares of Packaged Food 2006-2010
Table 40 NBO Shares of Packaged Food 2006-2010
Table 41 NBO Brand Shares of Packaged Food 2007-2010
Table 42 Sales of Packaged Food by Distribution Format: % Analysis 2006-2011
Table 43 Sales of Packaged Food by Category and Distribution Format: % Analysis 2011
Table 44 Forecast Sales of Packaged Food by Category: Volume 2011-2016
Table 45 Forecast Sales of Packaged Food by Category: Value 2011-2016
Table 46 Forecast Sales of Packaged Food by Category: % Volume Growth 2011-2016
Table 47 Forecast Sales of Packaged Food by Category: % Value Growth 2011-2016
SOURCES
Summary 1 Research Sources
Packaged Food in Kenya - Company Profiles
Bidco Oil Refineries Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Bidco Oil Refineries: Competitive Position 2010
Brookside Dairy Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Brookside Dairy Ltd: Competitive Position 2010
Kenchic Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Kenchic Ltd: Competitive Position 2010
Vital Camel Milk Ltd in Packaged Food (Kenya)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Baby Food in Kenya - Category Analysis
HEADLINES
TRENDS
Baby food has been boosted immensely by a recent baby boom, with several thousand children being born between 2010 and 2011. Official statistics estimate that over half the Kenyan population is under the age of 18, and with infant mortality dropping and better access to healthcare, that figure is likely to rise even higher over the forecast period.
COMPETITIVE LANDSCAPE
Leading brands in baby food include products from Nestlé Foods Kenya Ltd and Tiger Brands Ltd. Other players are Proctor and Allan E A Ltd,
PROSPECTS
The government will continue to encourage exclusive breastfeeding for the first six months. This means that baby food is likely to be affected since more and more mothers will wait until then to start offering their babies other foods.
CATEGORY DATA
Table 48 Sales of Baby Food by Category: Volume 2006-2011
Table 49 Sales of Baby Food by Category: Value 2006-2011
Table 50 Sales of Baby Food by Category: % Volume Growth 2006-2011
Table 51 Sales of Baby Food by Category: % Value Growth 2006-2011
Table 52 Soy-based Vs Dairy-based Special Baby Milk Formula % Breakdown 2010
Table 53 Baby Food Company Shares 2006-2010
Table 54 Baby Food Brand Shares 2007-2010
Table 55 Sales of Baby Food by Distribution Format: % Analysis 2006-2011
Table 56 Forecast Sales of Baby Food by Category: Volume 2011-2016
Table 57 Forecast Sales of Baby Food by Category: Value 2011-2016
Table 58 Forecast Sales of Baby Food by Category: % Volume Growth 2011-2016
Table 59 Forecast Sales of Baby Food by Category: % Value Growth 2011-2016
Baked Goods in Kenya - Category Analysis
HEADLINES
TRENDS
The category was affected by rising prices at the end of the review period due to economic pressure, inflation and a weakening Kenyan shilling. Prices of inputs increased by as much as 50% from 2010 due to these factors, and this had a detrimental effect on the category. However, demand for products is still on the rise, and as such the category continued to register growth.
COMPETITIVE LANDSCAPE
The category is dominated by local players. Significant marketing presence is felt by DPL Festive, with its Festive Bread brand, as well as the Elliot’s and Super Loaf brands. In terms of presence, these are the key brands in the category.
PROSPECTS
The economy is expected to take a beating over the next couple of years. Rising inflation and high costs of fuel and electricity are expected to take centre-stage in this new dispensation. Also, a depreciating local currency will affect imports of ingredients used in production and slow down the recovery process. However, demand will continue to rise as the middle class continues to grow, despite all the economic pressure, and the category should register growth in the coming years, with a 2% constant value CAGR.
CATEGORY DATA
Table 60 Sales of Baked Goods by Category: Volume 2006-2011
Table 61 Sales of Baked Goods by Category: Value 2006-2011
Table 62 Sales of Baked Goods by Category: % Volume Growth 2006-2011
Table 63 Sales of Baked Goods by Category: % Value Growth 2006-2011
Table 64 Packaged/Industrial Cakes: Single Portion vs Multi-pack % Breakdown by Type 2006-2011
Table 65 Baked Goods Company Shares 2006-2010
Table 66 Baked Goods Brand Shares 2007-2010
Table 67 Sales of Baked Goods by Distribution Format: % Analysis 2006-2011
Table 68 Forecast Sales of Baked Goods by Category: Volume 2011-2016
Table 69 Forecast Sales of Baked Goods by Category: Value 2011-2016
Table 70 Forecast Sales of Baked Goods by Category: % Volume Growth 2011-2016
Table 71 Forecast Sales of Baked Goods by Category: % Value Growth 2011-2016
Biscuits in Kenya - Category Analysis
HEADLINES
TRENDS
An increasing health focus has moved demand away from biscuits, which are perceived as unhealthy products. An increasing number of people are moving towards healthier snacks such as dried fruit or cereals.
COMPETITIVE LANDSCAPE
The category is dominated by local player Global Allied Industries Ltd with a 12% share in 2010. The company has invested heavily in marketing for its House of Manji biscuits, and the same was noticed by competitor Britannia Industries Ltd with the Britannia brand. In terms of presence, these are the most popular and widespread brands.
PROSPECTS
The category is expected to see a strong rebound with the economic recovery. Strong growth is expected over the forecast period. This, coupled with a strong competitive push from newly re-launched brands as well as the resultant backlash from more established competitors, will bolster the category.
CATEGORY DATA
Table 72 Sales of Biscuits by Category: Volume 2006-2011
Table 73 Sales of Biscuits by Category: Value 2006-2011
Table 74 Sales of Biscuits by Category: % Volume Growth 2006-2011
Table 75 Sales of Biscuits by Category: % Value Growth 2006-2011
Table 76 Biscuits Company Shares 2006-2010
Table 77 Biscuits Brand Shares 2007-2010
Table 78 Sales of Biscuits by Distribution Format: % Analysis 2006-2011
Table 79 Forecast Sales of Biscuits by Category: Volume 2011-2016
Table 80 Forecast Sales of Biscuits by Category: Value 2011-2016
Table 81 Forecast Sales of Biscuits by Category: % Volume Growth 2011-2016
Table 82 Forecast Sales of Biscuits by Category: % Value Growth 2011-2016
Breakfast Cereals in Kenya - Category Analysis
HEADLINES
TRENDS
Growth in 2011 was lower than in previous years and volume was down 1%, primarily because the economy was still in recovery mode from a tough year. In addition, rising fuel costs driven by crises in the Middle East and North Africa fuel-producing nations made business conditions even harder.
COMPETITIVE LANDSCAPE
The Breakfast Cereal Company (Kenya) Ltd with its Weetabix brand led sales of breakfast cereals at the end of the review period with 37% value share in 2010. The company has a strong brand name and presence, and a relatively longstanding presence. It is also perceived as a premium brand with slightly higher quality than locally-produced alternatives.
PROSPECTS
The category is set to be affected over the forecast period by expected adverse economic conditions. The rising cost of production brought on by a weakening Kenyan shilling, high costs of fuel and double-digit inflation will dampen imports, as well as hamper local production in the category.
CATEGORY DATA
Table 83 Sales of Breakfast Cereals by Category: Volume 2006-2011
Table 84 Sales of Breakfast Cereals by Category: Value 2006-2011
Table 85 Sales of Breakfast Cereals by Category: % Volume Growth 2006-2011
Table 86 Sales of Breakfast Cereals by Category: % Value Growth 2006-2011
Table 87 Breakfast Cereals Company Shares 2006-2010
Table 88 Breakfast Cereals Brand Shares 2007-2010
Table 89 Sales of Breakfast Cereals by Distribution Format: % Analysis 2006-2011
Table 90 Forecast Sales of Breakfast Cereals by Category: Volume 2011-2016
Table 91 Forecast Sales of Breakfast Cereals by Category: Value 2011-2016
Table 92 Forecast Sales of Breakfast Cereals by Category: % Volume Growth 2011-2016
Table 93 Forecast Sales of Breakfast Cereals by Category: % Value Growth 2011-2016
Canned/Preserved Food in Kenya - Category Analysis
HEADLINES
TRENDS
In 2011, demand for products in canned/preserved food continued to increase. However, there was also an increase in demand for fresh produce as opposed to canned/preserved produce due to improved access to fresh produce in retail outlets. Nevertheless this had a limited impact on retail volume growth as it was mainly among high-income consumers.
COMPETITIVE LANDSCAPE
The leading player in canned/preserved food in 2010 was Princess Tuna Ltd, a domestic manufacturer, with a retail value share of 17%. Its Princess brand was the leading brand in 2010, products under which are highly regarded by Kenyan consumers for their quality and value-for-money positioning.
PROSPECTS
Canned/preserved food is expected to grow by a retail volume CAGR of 6% over the forecast period due to continued increases in the base of middle-income consumers in Kenya and continued demand among high-income consumers. Also, the economy is expected to further recover from the global economic crisis that occurred over 2008 and 2009 and to thus perform well.
CATEGORY DATA
Table 94 Sales of Canned/Preserved Food by Category: Volume 2006-2011
Table 95 Sales of Canned/Preserved Food by Category: Value 2006-2011
Table 96 Sales of Canned/Preserved Food by Category: % Volume Growth 2006-2011
Table 97 Sales of Canned/Preserved Food by Category: % Value Growth 2006-2011
Table 98 Canned/Preserved Food Company Shares 2006-2010
Table 99 Canned/Preserved Food Brand Shares 2007-2010
Table 100 Sales of Canned/Preserved Food by Distribution Format: % Analysis 2006-2011
Table 101 Forecast Sales of Canned/Preserved Food by Category: Volume 2011-2016
Table 102 Forecast Sales of Canned/Preserved Food by Category: Value 2011-2016
Table 103 Forecast Sales of Canned/Preserved Food by Category: % Volume Growth 2011-2016
Table 104 Forecast Sales of Canned/Preserved Food by Category: % Value Growth 2011-2016
Cheese in Kenya - Category Analysis
HEADLINES
TRENDS
Cheese, as a product that is closely related to the billion shilling milk sector, is very much affected by economic fluctuations. Further, as a largely luxury product for the upper middle to upper classes of the economy, this product is not consumed regularly, and any fluctuations in the economy mean people stop consuming it.
COMPETITIVE LANDSCAPE
Leading cheese companies are New Kenya Co-operative Creameries Ltd (28% value share) and Sunpower Products Ltd (18% value share). They produce KCC Processed Cheddar Cheese and Brown’s respectively. Gebrüder Woerle GesmbH is ranked third with second positioned brand Happy Cow.
PROSPECTS
Cheese will make a strong recovery with the rebounding economy, and is predicted to display a 1% constant value CAGR compared to the -2% CAGR of the review period. As the economy recovers from the post-election turbulent period, we are likely to see growth compared to the past few years. As the economy is boosted by the East African Community free trade area and the increased penetration of modern supermarkets in the country, who offer a wider choice of cheese than independent small grocers.
CATEGORY DATA
Table 105 Sales of Cheese by Category: Volume 2006-2011
Table 106 Sales of Cheese by Category: Value 2006-2011
Table 107 Sales of Cheese by Category: % Volume Growth 2006-2011
Table 108 Sales of Cheese by Category: % Value Growth 2006-2011
Table 109 Spreadable Processed Cheese by Type: % Value Breakdown 2006-2011
Table 110 Cheese Company Shares 2006-2010
Table 111 Cheese Brand Shares 2007-2010
Table 112 Sales of Cheese by Distribution Format: % Analysis 2006-2011
Table 113 Forecast Sales of Cheese by Category: Volume 2011-2016
Table 114 Forecast Sales of Cheese by Category: Value 2011-2016
Table 115 Forecast Sales of Cheese by Category: % Volume Growth 2011-2016
Table 116 Forecast Sales of Cheese by Category: % Value Growth 2011-2016
Chilled Processed Food in Kenya - Category Analysis
HEADLINES
TRENDS
Consumption patterns in Kenya for chilled processed food did not see major change in 2011, resulting in similar volume growth as in the review period. The only significant sub-sector is chilled meat, whilst other types such as fish/seafood cannot compete with other formats such as canned products. The products target mainly the upper income consumers as cured meat is a fairly new and western type of food.
COMPETITIVE LANDSCAPE
Domestic company Farmers Choice Ltd continued to lead in chilled processed food in 2010, accounting for a dominant retail value share of 50%. The company has a long-standing position in Kenya and it is well established in chilled processed food. Its strong position is also due to the quality of its products, which is perceived to be higher than that of competing products among consumers.
PROSPECTS
Demand for chilled processed food is expected to continue to increase over the forecast period as a result of which the category is expected to grow by a retail volume CAGR of 4%. Demand is expected to be driven by changing tastes among consumers and increases in their level of disposable income as a result of which products in chilled processed food will become more affordable. In addition, increased availability in retail outlets as a result of improved refrigeration facilities is expected to help to boost the visibility of these products.
CATEGORY DATA
Table 117 Sales of Chilled Processed Food by Category: Volume 2006-2011
Table 118 Sales of Chilled Processed Food by Category: Value 2006-2011
Table 119 Sales of Chilled Processed Food by Category: % Volume Growth 2006-2011
Table 120 Sales of Chilled Processed Food by Category: % Value Growth 2006-2011
Table 121 Chilled Processed Food Company Shares 2006-2010
Table 122 Chilled Processed Food Brand Shares 2007-2010
Table 123 Sales of Chilled Processed Food by Distribution Format: % Analysis 2006-2011
Table 124 Forecast Sales of Chilled Processed Food by Category: Volume 2011-2016
Table 125 Forecast Sales of Chilled Processed Food by Category: Value 2011-2016
Table 126 Forecast Sales of Chilled Processed Food by Category: % Volume Growth 2011-2016
Table 127 Forecast Sales of Chilled Processed Food by Category: % Value Growth 2011-2016
Chocolate Confectionery in Kenya - Category Analysis
HEADLINES
TRENDS
Value growth was slower in 2011 compared with the period average due to the sharp increase in distribution costs as a result of high fuel prices. The weaker Kenyan shilling also contributed to higher import costs for key raw materials such as cocoa. Furthermore, inflation reduced consumers’ purchasing power and sales were negatively impacted by higher unit prices.
COMPETITIVE LANDSCAPE
Cadbury was the largest chocolate company in 2010 with key brands Fudge, Mint Choc and Dairy Milk. These brands have a low selling price (especially Fudge and Mint Choc) while offering quality (Dairy Milk is slightly more expensive and seen as a luxury product).
PROSPECTS
Sales forecasts are set improve with a 2% constant value CAGR predicted for the forecast period. This is likely to be due to further product innovations that will appeal middle-class urban consumers. Moreover, as cheap imports become more available in retail outlets, unit prices will remain fairly stable, thus increasing demand.
CATEGORY DATA
Table 128 Sales of Chocolate Confectionery by Category: Volume 2006-2011
Table 129 Sales of Chocolate Confectionery by Category: Value 2006-2011
Table 130 Sales of Chocolate Confectionery by Category: % Volume Growth 2006-2011
Table 131 Sales of Chocolate Confectionery by Category: % Value Growth 2006-2011
Table 132 Chocolate Tablets by Type: % Value Breakdown 2006-2011
Table 133 Chocolate Confectionery Company Shares 2006-2010
Table 134 Chocolate Confectionery Brand Shares 2007-2010
Table 135 Sales of Chocolate Confectionery by Distribution Format: % Analysis 2006-2011
Table 136 Forecast Sales of Chocolate Confectionery by Category: Volume 2011-2016
Table 137 Forecast Sales of Chocolate Confectionery by Category: Value 2011-2016
Table 138 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth 2011-2016
Table 139 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2011-2016
Dried Processed Food in Kenya - Category Analysis
HEADLINES
TRENDS
Volume growth in 2011 was in line with the previous year at 3%, although it was down 2 percentage point on the review period performance. This is due to the already large penetration of rice as a staple food in Kenya and the fact that growth is tied to population growth. Moreover, the low penetration of dessert mixes meant it had little impact on the overall sector’s growth.
COMPETITIVE LANDSCAPE
The leading companies in dried processed food in 2010 were CP Intertrade Co Ltd and AFN Enterprises with retail value shares of 15% and of 14% respectively. The category comprises of a mix of both local and international brands but the strongest brands are imported brands. Nevertheless, domestic brands such as Tastic Rice, Pearl Pishori Rice and Basmati Rice have also performed well.
PROSPECTS
Rice is expected to remain a staple part of Kenyan cuisine over the forecast period, which is expected to help to support the retail volume growth of dried processed food. However, if unit prices in rice increase over the forecast period substitute products such as ugali will continue to gain in prominence, especially if they are more affordable and locally produced. Ugali is a national staple and it is largely supplemented with rice among high-income consumers.
CATEGORY DATA
Table 140 Sales of Dried Processed Food by Category: Volume 2006-2011
Table 141 Sales of Dried Processed Food by Category: Value 2006-2011
Table 142 Sales of Dried Processed Food by Category: % Volume Growth 2006-2011
Table 143 Sales of Dried Processed Food by Category: % Value Growth 2006-2011
Table 144 Dried Processed Food Company Shares 2006-2010
Table 145 Dried Processed Food Brand Shares 2007-2010
Table 146 Sales of Dried Processed Food by Distribution Format: % Analysis 2006-2011
Table 147 Forecast Sales of Dried Processed Food by Category: Volume 2011-2016
Table 148 Forecast Sales of Dried Processed Food by Category: Value 2011-2016
Table 149 Forecast Sales of Dried Processed Food by Category: % Volume Growth 2011-2016
Table 150 Forecast Sales of Dried Processed Food by Category: % Value Growth 2011-2016
Drinking Milk Products in Kenya - Category Analysis
HEADLINES
TRENDS
Drinking milk products witnessed dampening supply, caused by drought conditions in the country. The further weakening of the shilling, as well as overall inflation in the economy are factors that also impacted the category.
COMPETITIVE LANDSCAPE
Leading brands in drinking milk products are Gold Crown and KCC. Newer brands in the long-life milk category include Daima Milk, Fresha milk from Githunguri Dairies and Molo Milk from Buzeki Dairies.
PROSPECTS
Drinking milk products will make a strong rebound with the improving economy and strong growth is expected over the forecast period with a 4% constant value CAGR. This coupled with a strong competitive push from newly re-launched brands as well as the resultant backlash from more established competitors will bolster the category.
CATEGORY DATA
Table 151 Sales of Drinking Milk Products by Category: Volume 2006-2011
Table 152 Sales of Drinking Milk Products by Category: Value 2006-2011
Table 153 Sales of Drinking Milk Products by Category: % Volume Growth 2006-2011
Table 154 Sales of Drinking Milk Products by Category: % Value Growth 2006-2011
Table 155 Drinking Milk Products Company Shares 2006-2010
Table 156 Drinking Milk Products Brand Shares 2007-2010
Table 157 Sales of Drinking Milk Products by Distribution Format: % Analysis 2006-2011
Table 158 Forecast Sales of Drinking Milk Products Products by Category: Volume 2011-2016
Table 159 Forecast Sales of Drinking Milk Products Products by Category: Value 2011-2016
Table 160 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2011-2016
Table 161 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2011-2016
Frozen Processed Food in Kenya - Category Analysis
HEADLINES
TRENDS
Retail volume in 2011 was down nearly 1 percentage point as consumers traded down for cheaper food items such as canned/food which are cheaper. In reaction, retailers and manufacturers significantly slashed prices in order to regain consumers but this had no impact on volume sales amid shrinking consumer’s confidence. As a result value sales decreased by 1% in 2011.
COMPETITIVE LANDSCAPE
Frozen processed food is dominated by local producers. The leading domestic companies in 2010 were Farmers Choice Ltd, Kenchic Ltd, Zuri Kenya and Njoro Canning Factory Ltd, all of which offer products under their own brands.
PROSPECTS
In terms of constant retail value growth, frozen processed food is expected to grow by a CAGR of -6% over the forecast period as production costs and prices are squeezed as a result of increasing competition. The introduction of new products from the re-established Kenya Meat Commission is expected to pose a threat to the leading players, in particular Farmers Choice Ltd, and to lead to a price war.
CATEGORY DATA
Table 162 Sales of Frozen Processed Food by Category: Volume 2006-2011
Table 163 Sales of Frozen Processed Food by Category: Value 2006-2011
Table 164 Sales of Frozen Processed Food by Category: % Volume Growth 2006-2011
Table 165 Sales of Frozen Processed Food by Category: % Value Growth 2006-2011
Table 166 Frozen Processed Food Company Shares 2006-2010
Table 167 Frozen Processed Food Brand Shares 2007-2010
Table 168 Sales of Frozen Processed Food by Distribution Format: % Analysis 2006-2011
Table 169 Forecast Sales of Frozen Processed Food by Category: Volume 2011-2016
Table 170 Forecast Sales of Frozen Processed Food by Category: Value 2011-2016
Table 171 Forecast Sales of Frozen Processed Food by Category: % Volume Growth 2011-2016
Table 172 Forecast Sales of Frozen Processed Food by Category: % Value Growth 2011-2016
Gum in Kenya - Category Analysis
HEADLINES
TRENDS
The category was affected by increasing production costs in 2011. The cost of sugar doubled from the previous year, and this affected production in the category. Furthermore, increasing electricity and fuel costs also had a negative impact on manufacturers’ margins.
COMPETITIVE LANDSCAPE
The category is dominated by The Wrigley Company (East Africa) Ltd, which accounted for over 80% of value sales in 2010. Its brands cut across the sugarised and sugar-free gum categories. It has a wide distribution network across the country, and several brands on offer, which underpins its dominance.
PROSPECTS
The expected rise in production costs and subsequent price increases will erode consumers’ disposable incomes in coming years. This will make things even more expensive for ordinary Kenyans, especially items that are generally considered luxuries, such as gum.
CATEGORY DATA
Table 173 Sales of Gum by Category: Volume 2006-2011
Table 174 Sales of Gum by Category: Value 2006-2011
Table 175 Sales of Gum by Category: % Volume Growth 2006-2011
Table 176 Sales of Gum by Category: % Value Growth 2006-2011
Table 177 Gum Company Shares 2006-2010
Table 178 Gum Brand Shares 2007-2010
Table 179 Sales of Gum by Distribution Format: % Analysis 2006-2011
Table 180 Forecast Sales of Gum by Category: Volume 2011-2016
Table 181 Forecast Sales of Gum by Category: Value 2011-2016
Table 182 Forecast Sales of Gum by Category: % Volume Growth 2011-2016
Table 183 Forecast Sales of Gum by Category: % Value Growth 2011-2016
Ice Cream in Kenya - Category Analysis
HEADLINES
TRENDS
Ice cream witnessed relatively consistent growth rates over 2011, with no major fluctuations or campaigns. There was a trend towards healthier living, which to a minor extent affected the category, as ice cream is perceived to be an “unhealthy” product.
COMPETITIVE LANDSCAPE
The leading company in 2010 was Glacier Products with 37% value share with Dairyland and Choc Stick being its most successful brands. It was followed by Nestlé Foods Kenya Ltd with its popular Dairymaid product.
PROSPECTS
Sales are expected to rise due to the increased size of the middle class, which is the driver of growth in any economy. In addition, the overall economy is expected to bounce back from the crisis of 2008 and 2009, to register stellar growth rates. Already, key economic sectors like tourism and tea are indicating that 2011 will be their best year yet.
CATEGORY DATA
Table 184 Sales of Ice Cream by Category: Volume 2006-2011
Table 185 Sales of Ice Cream by Category: Value 2006-2011
Table 186 Sales of Ice Cream by Category: % Volume Growth 2006-2011
Table 187 Sales of Ice Cream by Category: % Value Growth 2006-2011
Table 188 Ice Cream Company Shares 2006-2010
Table 189 Ice Cream Brand Shares 2007-2010
Table 190 Sales of Ice Cream by Distribution Format: % Analysis 2006-2011
Table 191 Forecast Sales of Ice Cream by Category: Volume 2011-2016
Table 192 Forecast Sales of Ice Cream by Category: Value 2011-2016
Table 193 Forecast Sales of Ice Cream by Category: % Volume Growth 2011-2016
Table 194 Forecast Sales of Ice Cream by Category: % Value Growth 2011-2016
Meal Replacement in Kenya - Category Analysis
TRENDS
Meal replacement products are negligible in Kenya, concerning only a small proportion of upper-income, Westernised consumers and Western foreigners.
Noodles in Kenya - Category Analysis
HEADLINES
TRENDS
Growth in the number of Chinese immigrants in Kenya due to major infrastructure and construction projects in the country has helped to support retail volume sales of noodles, despite the negative effects of the global economic downturn, as the majority of these consumers consume products in noodles.
COMPETITIVE LANDSCAPE
Noodles is highly fragmented and it is led by foreign importers, largely from the Far East. Esko & Co Ltd was the leading player in noodles in 2010 due to strong recognition among consumers of its138 Noodles and Instant Noodles brands, and its long-standing presence in the country.
PROSPECTS
The immigrant Chinese community in Kenya is expected to continue to increase over the forecast period and to further support retail volume sales of noodles. In addition, due to their increasingly hectic lifestyles, more consumers are expected to opt for products in noodles as a convenient meal option.
CATEGORY DATA
Table 195 Sales of Noodles by Category: Volume 2006-2011
Table 196 Sales of Noodles by Category: Value 2006-2011
Table 197 Sales of Noodles by Category: % Volume Growth 2006-2011
Table 198 Sales of Noodles by Category: % Value Growth 2006-2011
Table 199 Noodles Company Shares 2006-2010
Table 200 Noodles Brand Shares 2007-2010
Table 201 Sales of Noodles by Distribution Format: % Analysis 2006-2011
Table 202 Forecast Sales of Noodles by Category: Volume 2011-2016
Table 203 Forecast Sales of Noodles by Category: Value 2011-2016
Table 204 Forecast Sales of Noodles by Category: % Volume Growth 2011-2016
Table 205 Forecast Sales of Noodles by Category: % Value Growth 2011-2016
Oils and Fats in Kenya - Category Analysis
HEADLINES
TRENDS
The tough prevailing economic situation placed a strain on the prices of oils and fats. Prices almost doubled from 2010, primarily due to the weak shilling and the high cost of inputs into the category. It has become very expensive for many manufacturers to operate and they in turn pass that cost over to the consumer.
COMPETITIVE LANDSCAPE
Leading companies in oils and fats in 2010 were Bidco Oil Refinery Ltd Kenya, Kapa Oil Refineries Ltd Kenya and Unilever Kenya Ltd respectively. Bidco is the largest consumer oil manufacturing operation in East Africa, and it owns some of the most prolific and popular brands in the category including Ufuta, Kimbo, and Elianto. Within margarine, the biggest player is Unilever, with its Blue Band brand, but faces growing competition from emerging Gold Band from Bidco and Prestige from Kapa Oil.
PROSPECTS
Oils and fats will experience a continual increase in prices due to prevailing economic conditions. This will be mitigated by the high cost of production which will hamper demand high cost of fuel and the precarious condition of the Kenya Shilling all conspire to make it very expensive to operate in the category. Manufacturers will, naturally, pass on all these costs to the consumer.
CATEGORY DATA
Table 206 Sales of Oils and Fats by Category: Volume 2006-2011
Table 207 Sales of Oils and Fats by Category: Value 2006-2011
Table 208 Sales of Oils and Fats by Category: % Volume Growth 2006-2011
Table 209 Sales of Oils and Fats by Category: % Value Growth 2006-2011
Table 210 Oils and Fats Company Shares 2006-2010
Table 211 Oils and Fats Brand Shares 2007-2010
Table 212 Sales of Oils and Fats by Distribution Format: % Analysis 2006-2011
Table 213 Forecast Sales of Oils and Fats by Category: Volume 2011-2016
Table 214 Forecast Sales of Oils and Fats by Category: Value 2011-2016
Table 215 Forecast Sales of Oils and Fats by Category: % Volume Growth 2011-2016
Table 216 Forecast Sales of Oils and Fats by Category: % Value Growth 2011-2016
Other Dairy in Kenya - Category Analysis
HEADLINES
TRENDS
The economy went through a turbulent period in 2011 due to the weakening Kenya shilling and the skyrocketing cost of living and inflation. 2012 is an election year, and predictions are that the economy could take a further hit from this situation. As such, the performance of the sector over the past few years has been waning since the majority is imported.
COMPETITIVE LANDSCAPE
Nestlé Foods Kenya Ltd led other dairy with 44% value share, with Brookside Dairy Ltd and Eldoville Farm ranking second and third. The category has several local producers such as Brookside Dairy Ltd but is led by the local set up of a major multinational.
PROSPECTS
Other dairy is predicted to see strong growth with a constant value CAGR of 6% which is a good improvement on the review period constant value CAGR of -4%. This coupled with a strong competitive push from newly re-launched brands as well as the resultant lash back from more established competitors will bolster the sector. Also, strong demand arising from a growing middle class will impact on this. Though imports play a role in the sector, the expected further weakening of the Kenya shilling in 2012 due to the usual political turbulence in an election year means that importers will have high costs which they will pass on to consumers.
CATEGORY DATA
Table 217 Sales of Other Dairy by Category: Volume 2006-2011
Table 218 Sales of Other Dairy by Category: Value 2006-2011
Table 219 Sales of Other Dairy by Category: % Volume Growth 2006-2011
Table 220 Sales of Other Dairy by Category: % Value Growth 2006-2011
Table 221 Sales of Other Dairy by Distribution Format: % Analysis 2006-2011
Table 222 Forecast Sales of Other Dairy by Category: Volume 2011-2016
Table 223 Forecast Sales of Other Dairy by Category: Value 2011-2016
Table 224 Forecast Sales of Other Dairy by Category: % Volume Growth 2011-2016
Table 225 Forecast Sales of Other Dairy by Category: % Value Growth 2011-2016
Pasta in Kenya - Category Analysis
HEADLINES
TRENDS
Pasta registered retail value growth of 5% in 2011 as a result of increases in unit prices. Due to weakening of the domestic currency, the cost of imported products increased. In addition, the rate of inflation remained high in Kenya.
COMPETITIVE LANDSCAPE
The leading companies in pasta are all foreign companies. The leading player in 2010 was PIA Ltd with a retail value share of 13%.
PROSPECTS
Over the forecast period, there is expected to be development in terms of new products in pasta, with the introduction of products in other categories such as canned/preserved pasta and chilled/fresh pasta. There is also expected to be the introduction of products in different flavour variants for example pasta with cheese and spicy pasta.
CATEGORY DATA
Table 226 Sales of Pasta by Category: Volume 2006-2011
Table 227 Sales of Pasta by Category: Value 2006-2011
Table 228 Sales of Pasta by Category: % Volume Growth 2006-2011
Table 229 Sales of Pasta by Category: % Value Growth 2006-2011
Table 230 Pasta Company Shares 2006-2010
Table 231 Pasta Brand Shares 2007-2010
Table 232 Sales of Pasta by Distribution Format: % Analysis 2006-2011
Table 233 Forecast Sales of Pasta by Category: Volume 2011-2016
Table 234 Forecast Sales of Pasta by Category: Value 2011-2016
Table 235 Forecast Sales of Pasta by Category: % Volume Growth 2011-2016
Table 236 Forecast Sales of Pasta by Category: % Value Growth 2011-2016
Ready Meals in Kenya - Category Analysis
HEADLINES
TRENDS
Ready meals has benefited highly from the growing base and increasingly hectic lifestyles of middle-income consumers in Kenya, with an increasing number of these consumers opting for products in ready meals in order to avoid the inconvenience of home cooking. This is particularly true for young working professionals who do not have the time or inclination to prepare meals at home. Nevertheless, the vast majority of Kenyan consumers continued to prefer to prepare food at home in 2011.
COMPETITIVE LANDSCAPE
Kabazi Canners Ltd was the leading player in ready meals with a retail value share of 31% in 2010 due to its well-known Kenylon brand, products under which are perceived as being of better quality than those under similar competing brands among consumers.
PROSPECTS
The economic conditions present in Kenya towards the end of the review period are expected to prevail over the forecast period, meaning that current retail value growth is expected to continue to slowdown over the forecast period as unit prices are pushed down by decreasing production costs and fierce competition between manufacturers.
CATEGORY DATA
Table 237 Sales of Ready Meals by Category: Volume 2006-2011
Table 238 Sales of Ready Meals by Category: Value 2006-2011
Table 239 Sales of Ready Meals by Category: % Volume Growth 2006-2011
Table 240 Sales of Ready Meals by Category: % Value Growth 2006-2011
Table 241 Ready Meals: Vegetarian Vs Non-vegetarian % Breakdown by Type 2011
Table 242 Ready Meals Company Shares 2006-2010
Table 243 Ready Meals Brand Shares 2007-2010
Table 244 Sales of Ready Meals by Distribution Format: % Analysis 2006-2011
Table 245 Forecast Sales of Ready Meals by Category: Volume 2011-2016
Table 246 Forecast Sales of Ready Meals by Category: Value 2011-2016
Table 247 Forecast Sales of Ready Meals by Category: % Volume Growth 2011-2016
Table 248 Forecast Sales of Ready Meals by Category: % Value Growth 2011-2016
Sauces, Dressings and Condiments in Kenya - Category Analysis
HEADLINES
TRENDS
Demand for stock cubes and powders continued to increase in 2011 due to aggressive marketing of products in this category. Also demand for herbs and spices increased in 2011 with the introduction of new products and the entrance of new players. There was strong emphasis on healthy living and healthy eating habits based on consumption of herbs and spices in 2011.
COMPETITIVE LANDSCAPE
Unilever Kenya Ltd, with its wide variety of products, was the leading player in sauces, dressings and condiments in 2010. The company accounted for a retail value share of 13% due to its well known brands, which are widely recognised among consumers, and its intense and aggressive marketing strategy.
PROSPECTS
Volume growth will be flat in the forecast period as demand will reach a plateau due to maturity of the sector and lack of significant product innovation. The growing tendency among upper income consumers to use ready meals will also increasingly compete with sauces, dressings and condiments. In constant value terms however, the category will see positive growth as manufacturers offer more varieties at different price points in order to better satisfy different consumer groups.
CATEGORY DATA
Table 249 Sales of Sauces, Dressings and Condiments by Category: Volume 2006-2011
Table 250 Sales of Sauces, Dressings and Condiments by Category: Value 2006-2011
Table 251 Sales of Sauces, Dressings and Condiments by Category: % Volume Growth 2006-2011
Table 252 Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2006-2011
Table 253 Sauces, Dressings and Condiments Company Shares 2006-2010
Table 254 Sauces, Dressings and Condiments Brand Shares 2007-2010
Table 255 Sales of Sauces, Dressings and Condiments by Distribution Format: % Analysis 2006-2011
Table 256 Forecast Sales of Sauces, Dressings and Condiments by Category: Volume 2011-2016
Table 257 Forecast Sales of Sauces, Dressings and Condiments by Category: Value 2011-2016
Table 258 Forecast Sales of Sauces, Dressings and Condiments by Category: % Volume Growth 2011-2016
Table 259 Forecast Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2011-2016
Snack Bars in Kenya - Category Analysis
TRENDS
There is no demand for snack bars in Kenya as awareness is limited and a consumer base who can afford such products remains under-represented in the country.
Soup in Kenya - Category Analysis
HEADLINES
TRENDS
Even though products in soup are perceived to be healthy, most consumers choose to consume homemade soup, which is prepared by boiling bones to extract bone marrow and then adding other ingredients. Thus, in challenging economic times, products in soup are among the first products to be removed from the shopping list of consumers, as they opt for homemade soup. Therefore the continued negative effects of the global economic downturn led to decreased demand for soup in 2011.
COMPETITIVE LANDSCAPE
The leading player in soup in 2010 was Unilever Group, with its Knorr brand, followed by Monty & Totco Co Ltd with its Thai brand, Kabazi Canners Ltd with Kenylon and HJ Heinz Co with Heinz. The leading brands have been present for quite a long time with little competition, hence their strong position. Unilever Group leads in soup due to the wide array of flavour variants that it offers. It is also the longest standing company in soup in Kenya.
PROSPECTS
The economic conditions in Kenya at the end of the review period are expected to prevail over the first half of the forecast period, meaning that the cost of production and importation of products in soup is expected to increase. This will force middle-income consumers to trade down to more affordable products while low-income consumers seek alternative products such as homemade soup. Therefore, soup is expected to grow by a retail volume CAGR of -1% over the forecast period.
CATEGORY DATA
Table 260 Sales of Soup by Category: Volume 2006-2011
Table 261 Sales of Soup by Category: Value 2006-2011
Table 262 Sales of Soup by Category: % Volume Growth 2006-2011
Table 263 Sales of Soup by Category: % Value Growth 2006-2011
Table 264 Soup Company Shares 2006-2010
Table 265 Soup Brand Shares 2007-2010
Table 266 Sales of Soup by Distribution Format: % Analysis 2006-2011
Table 267 Forecast Sales of Soup by Category: Volume 2011-2016
Table 268 Forecast Sales of Soup by Category: Value 2011-2016
Table 269 Forecast Sales of Soup by Category: % Volume Growth 2011-2016
Table 270 Forecast Sales of Soup by Category: % Value Growth 2011-2016
Spreads in Kenya - Category Analysis
HEADLINES
TRENDS
The impact of drought and adverse economic growth led to rising operational costs. This coupled with the recent soaring fuel prices and rising cost of electricity caused inflationary pressure. This resulted in increased prices across the board, as the cost of living rose, eroding consumers’ purchasing power.
COMPETITIVE LANDSCAPE
Major producers in the category are Premier Foods, Jetlak Industries and Trufoods Ltd, with their Peptang, Nuteez and Zesta brands respectively. They are all local producers, making products in and for the local market.
PROSPECTS
The recent hike in fuel costs due to instability in oil-producing nations, as well as the price cap on fuel costs imposed by the government in late 2010, conspire to represent a potential threat to growth in the category in coming years. A moderate 1% CAGR is expected in both volume and current value terms over the forecast period.
CATEGORY DATA
Table 271 Sales of Spreads by Category: Volume 2006-2011
Table 272 Sales of Spreads by Category: Value 2006-2011
Table 273 Sales of Spreads by Category: % Volume Growth 2006-2011
Table 274 Sales of Spreads by Category: % Value Growth 2006-2011
Table 275 Spreads Company Shares 2006-2010
Table 276 Spreads Brand Shares 2007-2010
Table 277 Sales of Spreads by Distribution Format: % Analysis 2006-2011
Table 278 Forecast Sales of Spreads by Category: Volume 2011-2016
Table 279 Forecast Sales of Spreads by Category: Value 2011-2016
Table 280 Forecast Sales of Spreads by Category: % Volume Growth 2011-2016
Table 281 Forecast Sales of Spreads by Category: % Value Growth 2011-2016
Sugar Confectionery in Kenya - Category Analysis
HEADLINES
TRENDS
Major trends affecting the category included the high cost of materials such as sugar and high inflationary pressures, which forced many people to make radical lifestyle changes. These included reduced spending on non-essentials such as sugar confectionery.
COMPETITIVE LANDSCAPE
Kenafric Industries Limited and Kenya Sweets Ltd are the leading players thanks to their brands Lotta and KSL respectively. They are popular among children and sold by the unit by most grocery retailers in the country.
PROSPECTS
A 2% volume CAGR is expected over the forecast period. Demand will increase as consumers increasingly buy into on-the-go treats and affordable indulgence habits.
CATEGORY DATA
Table 282 Sales of Sugar Confectionery by Category: Volume 2006-2011
Table 283 Sales of Sugar Confectionery by Category: Value 2006-2011
Table 284 Sales of Sugar Confectionery by Category: % Volume Growth 2006-2011
Table 285 Sales of Sugar Confectionery by Category: % Value Growth 2006-2011
Table 286 Sugarised Vs Sugar-free Sugar Confectionery % Breakdown by Type 2011
Table 287 Pastilles, Gums, Jellies and Chews by Type: % Value Breakdown 2006-2011
Table 288 Sugar Confectionery Company Shares 2006-2010
Table 289 Sugar Confectionery Brand Shares 2007-2010
Table 290 Sales of Sugar Confectionery by Distribution Format: % Analysis 2006-2011
Table 291 Forecast Sales of Sugar Confectionery by Category: Volume 2011-2016
Table 292 Forecast Sales of Sugar Confectionery by Category: Value 2011-2016
Table 293 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2011-2016
Table 294 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2011-2016
Sweet and Savoury Snacks in Kenya - Category Analysis
HEADLINES
TRENDS
Sweet and savoury snacks has been affected by factors that have affected the entire Kenyan economy. Sharp increases in the cost of fuel as well as high inflation and weakening of the local currency have all conspired to raise the cost of production of sweet and savoury snacks. This cost has in turn been passed on to consumers.
COMPETITIVE LANDSCAPE
Sweet and savoury snacks is dominated by domestic players. Kenya Nut Co Ltd was the leading player in 2010, with a retail value share of 9%, followed by Galiaya Food Industries, also with a retail value share of 9%. Kenya Nut Co Ltd manufactures products in nuts while Galiaya Food Industries manufactures produces in nuts, crisps and popcorn. Due to weakening of the domestic currency, for some companies it has become more affordable to engage in domestic production than to import products, which is part of the reason why domestic players have performed well.
PROSPECTS
The economic conditions present in Kenya at the end of the review period are expected to prevail over the first half of the forecast period, which means that unit prices will continue to increase as will the cost of production and of importing products. There is also expected to be less artisanal activity as manufacturers move towards branding their products.
CATEGORY DATA
Table 295 Sales of Sweet and Savoury Snacks by Category: Volume 2006-2011
Table 296 Sales of Sweet and Savoury Snacks by Category: Value 2006-2011
Table 297 Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2006-2011
Table 298 Sales of Sweet and Savoury Snacks by Category: % Value Growth 2006-2011
Table 299 Popcorn by Type: % Value Breakdown 2006-2011
Table 300 Sweet and Savoury Snacks Company Shares 2006-2010
Table 301 Sweet and Savoury Snacks Brand Shares 2007-2010
Table 302 Sales of Sweet and Savoury Snacks by Distribution Format: % Analysis 2006-2011
Table 303 Forecast Sales of Sweet and Savoury Snacks by Category: Volume 2011-2016
Table 304 Forecast Sales of Sweet and Savoury Snacks by Category: Value 2011-2016
Table 305 Forecast Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2011-2016
Table 306 Forecast Sales of Sweet and Savoury Snacks by Category: % Value Growth 2011-2016
Yoghurt and Sour Milk Drinks in Kenya - Category Analysis
HEADLINES
TRENDS
Yoghurt and sour milk drinks experienced a dampening supply, caused by drought conditions in the country. The further weakening of the shilling, as well as overall inflation in the economy are factors that also impacted the category.
COMPETITIVE LANDSCAPE
Leading brands in the category are Brookside, Ilara and Tuzo. Newer products include Daima Milk, Fresha from Githunguri Dairies and Molo Milk from Buzeki Dairies.
PROSPECTS
Yoghurt and sour milk drinks will make a strong recovery with the rebounding economy. Positive constant value growth is expected with a CAGR of 1%, which is a vast improvement on the -4% constant value CAGR of the review period. This coupled with a strong competitive push from newly re-launched brands as well as the resultant lash back from more established competitors will bolster the category.
CATEGORY DATA
Table 307 Sales of Yoghurt and Sour Milk Drinks by Category: Volume 2006-2011
Table 308 Sales of Yoghurt and Sour Milk Drinks by Category: Value 2006-2011
Table 309 Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2006-2011
Table 310 Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth 2006-2011
Table 311 Soy-based vs Dairy-based Yoghurt % Breakdown 2010
Table 312 Yoghurt and Sour Milk Drinks Company Shares 2006-2010
Table 313 Yoghurt and Sour Milk Drinks Brand Shares 2007-2010
Table 314 Sales of Yoghurt and Sour Milk Drinks by Distribution Format: % Analysis 2006-2011
Table 315 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Volume 2011-2016
Table 316 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Value 2011-2016
Table 317 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2011-2016
Table 318 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth 2011-2016
