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Milk, Dairy and Non-Dairy Beverage Innovation in Europe Update
Leatherhead Food International, Oct 2005
In recent times, the somewhat traditional milk and dairy beverages category has experienced a significant transformation. High levels of NPD have created new and exciting sectors within the market and strong marketing support for these new lines has led to considerable sales growth in certain areas. Even the mature and long-declining milk market has seen a return to value growth in recent years as more highly-priced, value-added products are developed.
In the area of health, there has been particular strength, with one-shot functional milk drinks having become one of the fastest-growing sectors in the international food and drinks market. Similarly, functional milks and yoghurt or milk drinks with added health benefits are now a common sight in the dairy cabinet. The other significant step forward for dairy beverages has been the provision of more convenient packaging formats, allowing these drinks to compete more effectively with other on-the-go soft drinks.
This new report from Leatherhead Food International is a major review of trends and developments in the milk, dairy and non-dairy beverage markets of Europe. Covering seven European countries in detail, it provides data on market sizes and growth, as well as discussing the major companies and their brands and reviewing recent new product development.
Key Features: - Analyses market sizes and growth - Summarises the key trends impacting on the market - Identifies the major companies and reviews their product ranges - Assesses recent NPD
Helping you to: - Monitor sales trends - Identify areas of current and potential future growth - Know your key competitors and be aware of the products available - Examine customer and competitor activity and recognise developing sectors
Key Facts and Figures “Total sales of milk, dairy and non-dairy beverages in Europe (covering seven key countries) were valued at almost EUR16.8bn in 2004. By volume, sales are over 20 billion litres a year. In per capita terms, consumption equates to 60.6 litres, with expenditure at EUR50.46 per person.”
“It is estimated that the overall market value for the seven countries under review is increasing at around 3% per annum. The UK had the highest growth rate at 4.8% in 2004, while the Italian market was up 3%, Germany 2.9%, Spain around 2% and France 1.5%.”
“Milk is the one sector of the dairy beverages market that is not showing strong annual growth. Volumes are in long-term decline and, until recently, market values were following a similar trend. However, values are now clearly outpacing volumes and, in 2004, it is estimated that value sales across the region actually rose slightly, by around 0.4%.”
“Growth rates in the one-shot functional milk drinks category remain extremely dynamic and were as high at 74.5% in the UK in 2004. In fact, the lowest level of growth was the 14.6% increase seen in Spain. Meanwhile, in France, sales rose 51.9%, in Germany 44.1%, in the Netherlands 33.3% and in Italy 20.1%.” “The one-shot functional milk drinks market has seen much higher than average levels of innovation across Europe in recent years. It is the youngest sector of the dairy beverages market, having only emerged in Europe in the mid-1990s. Probiotic one-shots were the first products launched in this sector and they remain the core focus for the category. However, more recently, NPD has been focused on the provision of alternative health benefits, with products aimed at cholesterol reduction and slimming having been launched. There have even been several recent launches in the area of blood pressure control, while one company in Spain has developed a one-shot based on soya milk.”
“The soya beverages sector is interesting in that new product activity tends to mirror that of the standard dairy beverages categories, albeit a little later. In recent times, this has led to the development of drinks combining soya milk with fruit juice and to the launch of one-shot soya drinks.”
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