Yogurt - UK

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2007 - 129 Pages

Table of Contents

Issues in the Market

Definitions

Excluded

Four key themes

Market in Brief

Market growth slowing down

Market environment favours yogurts

Simplifying the active health message

Organic yogurt - the blueprint for success

Portability is a developing theme

Converting light users

Drinking yogurts have a long way to go

Internal Market Environment

Key Points

Health concerns permeate every sector of the market

Figure 1: Agreement with selected lifestyle statements, 2003-07

Healthy eating is multi-dimensional

Figure 2: Agreement with selected lifestyle statements, 2003-07

Lifestyles mean more worry about ailments

Figure 3: Complaints suffered from in the last 12 months, 2003-07

Can yogurts be indulgent?

Figure 4: Agreement with selected lifestyle statements, 2003-07

Broader Market Environment

Key Points

AB socio-economic status growing

Figure 5: Changes in socio-economic status, 2002-12

Older age groups is beneficial for market growth

Figure 6: Changes in the UK demographic profile, by age, 2002-12

Health claims subject to approval

Competitive Context

Key Points

Wide competitive set

Competition from other naturally healthy foods

Yogurts as a dessert

Yogurts in the snack market

Yogurts for active health management

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Value and Forecast

Key Points

Market continues growth, but at slower rate

Figure 8: Market value for yogurts and fromage frais, 2002-07

Price declines stunt value growth

Segment Performance

Key Points

Market segmentation 1

Figure 9: UK retail value sales of yogurt (pots, tubes and drinks), by sector, 2006-07

Active health is blinded by science

Simplifying the message is key

Active health pots

Organics

Light/diet

Cornered growth

Luxury yogurt

Natural and Greek Yogurt

Children’s products

Health awareness has driven soya and dairy free sector

Market segmentation 2 - by format

Yogurts - pots and tubes

Figure 10: UK retail sales of yogurt and fromage frais (pots and tubes), at current and constant 2002 prices, by value, 2002-07

Yogurt drinks

Figure 11: UK retail sales of yogurt drinks (fermented and functional), at current and constant 2002 prices, by value, 2002-07

But what about non-functional yogurt drinks?

Future growth potential

The future

Higher raw material costs may slow price declines

Forecast

Yogurt market worth £2.1 billion by 2012

Yogurt drinks predicted to grow steeply following 2006-07 blip

Finding the right message will be key to yogurt drinks

Figure 12: Market volume /value for yogurts & fromage frais, 2002-12

Figure 13: Market value for yogurt drinks, 2002-2012

Factors used in both forecasts

Extra factor used in Yogurt drinks forecast

Market Share and Product Positioning

Key Points

Yogurt pots

Danone has been the big winner

Figure 14: Leading brands in the UK yogurt and fromage frais pot market, 2003-07

Danone increases its share

Müller brand portfolio performs satisfactorily

Organic brands benefit from range extension

Nestlé portfolio shows mixed results

Own brands struggle

Product positioning

Cholesterol and indulgence earn highest premiums

Figure 15: Typical retail prices of small pot yogurts, September 2007

Yogurt drinks

Benecol the big winner

Figure 16: Leading brands in the UK yogurt drink market, 2003-07

Companies and Products

Key points

Brand map

Figure 17: Brand map of the yogurt market, 2007

Company profiles

Groupe Danone

Actimel

Activia

Danacol

Shape

McNeil Nutritionals Ltd

Benecol

Müller Dairy (UK) Ltd

Müller Corner

Müllerlight

Vitality

Amoré

Yogz/Little Stars

One A Day

Nestlé UK

Ski

Sveltesse

Munch Bunch

Onken Dairy UK Ltd

Unilever Bestfoods

Yakult UK

Yeo Valley

Yoplait Dairy Crest (YDC)

Petits Filous and Wildlife

Weight Watchers

Yop

Other suppliers

Alpro

Arla Foods (UK)

Dale Farm Limited

FAGE (UK) Ltd

Rachel’s Organic

St Helen’s Farm

Stonyfield Europe

Brand Communication and Promotion

Key Points

Promotional spend rises

Figure 34: Main monitored advertising spend 2003-07

Müller, Danone and Yoplait top £10 million

Figure 35: Main monitored advertising spend by advertiser, 2006

Yoplait and Nestlé focus their spend

Smaller advertisers start to spend more

Seasonality

Figure 36: Nielsen media research, 2005-07

Channels to Market

Key Points

Multiples dominate distribution

Figure 37: Sales of yogurt, and yogurt drinks, by outlet type, 2003 and 2005

Consumer 1 - Usage and Attitudes to Yogurt

Key Points

Is yogurt consumption polarising?

Figure 38: Consumption of yogurt and fromage frais in the last 12 months, 2003-07

UK consumption still lags behind the continent

Figure 39: Consumption of yogurt, by country, 2006

Yogurt users are female, with families and ABC1

Figure 40: Consumption of yogurt and fromage frais in the last 12 months, 2007

Figure 41: Heavy consumption* of yogurt and fromage frais in the last 12 months, 2007

Light users are too busy

Older men are the non-users

Fromage frais limited to households with children

Figure 42: Types of pot yogurt/fromage frais eaten, 2007

Snacking is main use occasion

Figure 43: Usage occasions for yogurt, July 2007

ABs distinctly different usage patterns

Low fat is the key motivation

Figure 44: Key features when buying yogurt, July 2007

Divergent attitudes to fruit

Recognition of digestive benefits

Consumer 2 - Usage and Attitudes to Yogurt Drinks

Key Points

Household penetration is rising

Figure 45: Consumption of yogurt drinks in the last 12 months, 2003-07

Figure 46: Consumption of yogurt drinks (all users) in the last 12 months, 2007

UK yogurt drinks matches Europe

Heavy drink users seek additional features

Digestive aid dominates

Figure 48: Benefits sought when buying yogurt drinks, July 2007

Appendix

Abbreviations

Internal Market Environment

Figure 54: Agreement with selected lifestyle statements, by demographic sub-group, 2007

Figure 55: Agreement with selected lifestyle statements, by demographic sub group, 2007

Figure 56: Agreement with selected lifestyle statements, by demographic sub group, 2007

Figure 57: Complaints suffered from in the last 12 months, by demographic sub group, 2007

Brand communication and promotion

Figure 58: Main monitored media spend, 2003-06

Figure 59: Main monitored media spend, 2007

Consumer 1 - Yogurt usage

Figure 60: Consumption of yogurt and fromage frais in the last 12 months, by demographic sub group, 2007

Figure 61: Agreement with selected lifestyle statements, by usage of yogurt and fromage frais, 2007

Figure 62: Agreement with selected lifestyle statements, by usage of yogurt and fromage frais, 2007

Usage Occasions

Figure 63: Usage of yogurts, July 2007

Figure 64: Usage of yogurts, July 2007

Reasons for purchase

Figure 65: Motivations for buying yogurt, July 2007

Figure 66: Motivations for buying yogurts, July 2007

Figure 67: Motivations for buying yogurt, July 2007

The Consumer - Yogurt Drinks - Consumption

Figure 68: Consumption of yogurt drinks in the last 12 months, by demographic sub group, 2007

Figure 69: Agreement with selected lifestyle statements, by usage of yogurt drinks, 2007

Figure 70: Agreement with selected lifestyle statements, by usage of yogurt drinks, 2007

Yogurt drinks

Figure 71: Motivations for purchasing yogurt drinks, July 2007

Figure 72: Motivations for purchasing yogurt drinks, July 2007

Figure 73: Motivations for purchasing yogurt drinks, July 2007

Annex Data - Further Consumer Analysis

Figure 75: Number of different occasions that yogurt is eaten/used (column %), July 2007

Figure 76: Reasons for buying yogurt drinks, by those who buy yogurt drinks and those who buy yogurts (column %), July 2007

Figure 77: Important considerations when buying yogurt, by yogurt buyers and yogurt drink buyers (column %), July 2007

Abstract

Yogurt has a long-established reputation as a product consistent with healthy eating and great taste. It has been well placed to take advantage of increasing consumer interest in the link between diet and health. High levels of NPD and strong promotional support characterize the yogurt market - it is one of the few food categories where manufacturer brands have retained their dominance.

However, the active health sector has been a victim of its own success and active health yogurt drinks in particular have been declining with the rash of health claims confusing consumers, fueling their scepticism and driving them out of the sector. The key challenge for manufacturers is to simplify the marketing message to target consumers who don’t understand why they should buy it and get them doing so.

The market is defined to include yogurt, fromage frais and yogurt drinks.

Yogurt and yogurt drinks with functional benefits (such as Danone’s Actimel) positioned in the chiller cabinet are included, as are dairy-free yogurts and yogurt drinks where they are sold alongside equivalent chilled dairy products.

Functional fermented milk drinks, such as Yakult, are included in the report since cultures similar to those contained therein have now been introduced into products positioned as yogurt. Mintel considers this sector within the ‘functional’ market sector, as products are marketed to consumers based on their functional benefits.

Please note the terms yogurt and yoghurt are used interchangeably.

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