Market Entry - Prebiotics Industry in South Africa: Analysis of Growth, Trends and Progress (2020 - 2025)

About the Market

By application, the global prebiotics market is segmented into food and beverage, dietary supplements, and animal feed. Dairy, baked food, cereals, dry food, and fermented meat products come under the food and beverage segment. Prebiotic dairy products & infant formulations have witnessed maximum new products being launched over the past three years. Inulin promotes intestinal bacteria growth while enhancing mineral absorption. While it is suitable for diabetics, it also potentially helps in improving blood sugar-related illness effects. Chicory roots, acacia gums, lactose, and starch are key raw materials. Belgium, France, and the Netherlands are considered as the largest chicory root manufacturers, which would ensure easy raw material availability to manufacturing companies located in Europe; as it significantly impacts the global prebiotics market price trend. Increasing prevalence of CVD, diabetes as well as gut related diseases should drive awareness levels of the benefits provided by these ingredients, resulting in strong penetration of dietary supplements and functional foods. In addition, increasing consumer awareness regarding health benefits of prebiotics, coupled with rising instances of chronic diseases on account of sedentary lifestyle among young population in the region is expected to drive the market. Prebiotic food products and supplements manufacturers include Roquette America Inc., Abbott Nutrition, Friesland Campina, Cargill, Clasado Ltd., Beghin and Jarrow Formulas. Beneo-Orafti SA is involved in production and sales of inulin and oligofructose food ingredients derived from chicory. Beneo, Roquette, Coscura and Weetabix together accounted for close to 20% market share, in 2022.

About the Geography                  

South Africa is a developing, young country with a median age of 25.9 years and has a population of 52.98 million. It has a well-developed constitutional democracy. The country has brought economic reforms, which have led to macroeconomic stability and one of the largest stock exchanges in the world. The country has a well-developed transport infrastructure, sound macro conditions and robust financial and legal framework.

South Africa is among the top developing nations but faces problems such as skills deficit, poor labor relations, lack of electricity, violent crime, corruption, unemployment rate and immigration laws. In order to attract foreign investors, the government has initiated simple tax rules, investment incentives, protection of intellectual rights, and better regulatory policies through foreign investment grant, skills support program, the Protection of Investment Act, and the strategic industrial project programs. South Africa has great potential for foreign investors as it is largely a free market economy, has a transparent regulatory framework, a large population, access to raw materials and political stability.

The country is the third largest FDI recipient in Africa with most of it going to the telecommunications sector. The government is taking steps to curb the unemployment rate and provide continuous electricity. It has a large English-speaking population and hence is a popular choice for foreign investment.

The Market Entry Series

Exploring global markets is now recognized as the shortest way to ensure high time to efficiency conversion, when trying to expand revenues past domestic markets, for firms both large and small. Our market entry series, priced suitably low contains the essentials of all the parameters (Refer: Table of Contents) you must be apprised of before you can have a well informed contemplation of a business opportunity in your choice of industry, in your choice of geography.