MARKET ANALYSIS OF fruit jams, jellies, marmalades and purées

by Ziyanda Hadebe, ziyandah@elsenburg.com, and Masego Moobi, masegom@elsenburg.com

TThe preparation of fruit jams, jellies, marmalades and purées is one of the ancient traditional methods of preserving fruits and vegetables. It is one of the most important aspects of home-scale preservation as well as industrial-level processing of fruits. Making jellies and marmalade was considered a household art but now it is considered one of the more important industrial processes (Bhardwaj, 2000). According to Bhardwaj (2000), during World War II, these products were imported to meet military and civilian requirements. Today they are manufactured extensively to meet the growing and changing taste preferences of the global market.

South Africa is one of the countries with the potential to expand its fruit jam, jelly, marmalade and purée market by using the surplus production of fruits and fruit waste. At farm level, such a product is common in making additional profits for farmers in South Africa. According to ITC (2019), South African exports represent 1,2% of world exports for fruit jams, jellies, marmalades and purées. Most of these products from South Africa are exported to Russia, the Netherlands, Israel, Namibia, Germany, Mozambique, and Botswana (ITC, 2019). South Africa’s imports of these products represent 0,5% of world imports.

The value chain for fruit jams, jellies, marmalades and purées is relatively straightforward and easy to understand. The ingredients and tools for making these products can be found in a basic kitchen. However, this serves as a threat to most small and medium producers because it increases the rivalry in the market and forces existing producers to constantly innovate their products to remain competitive. In the Western Cape, there are several small and medium producers of these products and most face similar challenges and threats in their businesses.

Conclusion

The market of fruit jams, jellies, marmalades and purées in South Africa is dynamic and broad. It enables small and medium producers to explore different flavours that can capture their target market. There are several fruit-based spread producers in South Africa, especially in the Western Cape, with differentiated or unique recipes keeping them competitive while satisfying their target markets. Each year in South Africa, imports of fruit jams, jellies, marmalades and purées are increasing, showing that the demand for these products is growing. However, the identified threats remain a challenge, especially for smaller producers.

SWOT analysis

Strengths Threats

• Differentiated and unique fruit jams, jellies and other preserves.

• Endorsements and certificates received by manufacturers/producers.

• Consumer preferences of convenient and ready-to-eat products.

• Low operational costs and accessible raw inputs.

• Long and stable shelf life.

Opportunities

• Increased local and international demand for jams, jellies and other preserves.

• Increased consumption of complimentary products such as bread.

• Extended product range.

• Emergence of new trends, e.g. healthy lifestyle, which will demand new products.

References

• Stringent food safety regulations associated with processed fruits.

• Expensive packaging and strict labelling requirements.

• Increased concern about added sugar content and other food additives.

• Major brands and private labelled brands are direct competitors of small producers.

• Competition from other food spread substitutes such as cheese and chocolate spreads.

• Low barriers to entry.

Weaknesses

• Limited innovation among small producers.

• Limited target markets.

Bhardwaj, J.C. 2000. Postharvest technology of fruits and vegetables: An overview. (In Verma, L. & Joshi, V., eds. Postharvest technology of fruits and vegetables: General concepts and principles. New Delhi: Indus Publishing company. p. 1–1229).

ITC. 2019. Trade Map. Retrieved November 20, 2019, from International Trade Centre website: https://marketanalysis.intracen.org/en/home. Full report available from masegom@elsenburg.com.