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Health & wellness
Naturally healthy food products volume sales on the rise
Manufacturers continue to focus on making products that contain ingredients that provide natural benefits to consumers whilst ensuring no added costs to the final price. Categories such as bottled water continued to see upward movement in volume sales with products such as natural mineral water holding greater appeal to consumers seeking mineral supplements and low calorie intake from the beverages they consume.
Private label food products gain momentum
The level of competition in South Africa continues to increase as the mainstream retailers increasingly shift their focus towards developing private label food products in order to remain competitive. Retailers are seen to increase the shelf space allocated to private label food products whilst also actively promoting such products. In-store product tasting is one way in which they are stimulating demand since most consumers still have a negative perception towards the quality of most private label products. Healthy food products are seeing increased shelf space amongst the private label food products including beverages.
Product variety continues to drive volume sales for healthy food and drink products
Retailers are increasingly seen to broaden their brand and product portfolio relative to healthy food products across South Africa with an aim to reach out to health conscious South Africa. Retailers such a Woolworths have gained a reputation of selling health oriented products and consumers can now easily relate to such type of products with less need to promote the products although it is essential.
Supermarkets dominate the distribution of healthy food and drink products across South Africa
Consumers continue to make use of the supermarket channel to purchase grocery items including beverages, across South Africa. Supermarkets remain popular due to their wider product coverage which gives consumers a wider choice when it comes to both price and quality. Healthy beverages and food products continue to secure more shelf space in supermarkets across the country, whilst other retail channels such as forecourt retailers and independent retailers would focus on products with a high turnover rather than have a wide product range which may take longer to sell.
Persistent promotional activities expected to boost volume sales growth over the forecast period
Growth of the healthy food market is expected to receive a boost from increased marketing efforts by both manufacturers and retailers over the forecast period. The use of in-store sales representatives to provide samples for customer tasting and explaining the benefits of consuming such products, are expected to be methods employed by retailers and manufacturers to try and reach out to consumers who are still less informed about the benefits of consuming healthy beverages.
Welness sector in SA is booming
The wellness sector in South Africa is booming in everything from cosmetics and vitamin pills to gyms
- Western Cape’s exports of beauty or make-up preparations including sunscreen was worth ZAR565m in 2012 growing by 41% from 2011.Western Cape export of vitamins increased by 110% from 2011 to 2012.
- South African global exports in the beauty and wellness industry rose sharply from 2012 to 2013, increasing by 54% in 2013.
- Zimbabwe was the leading destination market for beauty and wellness products from South Africa in 2013, demanding three times more than Zambia, South Africa’s second largest export market. Six out of the top ten destination markets are other African countries.
- South Africa is the 30th largest destination market for global FDI projects in this sector and the 14th largest destination market in terms of capex.
The change in campaigns advertisement companies made regarding this booming market give some interesting insides:
A large percentage of scholars are also taking wellness advertising into consideration. This affords the advertisement companies to a number of opportunities for campaigns tailored to create relevant conversations amongst the youth market.
- 44% of scholars tend to look out for health and beauty adverts.
- The majority of people who tend to look out for health and beauty ads are aged between 25 and 34.
- 4 out of 10 women tend to look out for health and wellness adverts.
- 43% of people who tend to look out for health and wellness adverts are between the ages of 35 and 44.
- The majority of people who tend to look out for health and beauty ads are based in Gauteng (51%)