The Dairy in Western Europe global briefing offers an insight into to the size and shape of the Packaged Food market, highlights buzz topics, emerging geographies, categories and trends and identifies the leading companies and brands. It also offers strategic analysis on driving packaged food industry trends like health and wellness, premiumisation, convenience and value-for-money and how those trends influence factors like new product developments, packaging innovations, retail distribution and retail pricing both historically and into the future.
Product coverage: Baby Food, Baked Goods, Breakfast Cereals, Confectionery, Dairy, Edible Oils, Ice Cream and Frozen Desserts, Processed Fruit and Vegetables, Processed Meat and Seafood, Ready Meals, Rice, Pasta and Noodles, Sauces, Dressings and Condiments, Savoury Snacks, Soup, Spreads, Sweet Biscuits, Snack Bars and Fruit Snacks.
Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.
Why buy this report?
- Get a detailed picture of the Packaged Food market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.
2016 is the first year in over a decade when Western Europe loses its leading position in dairy to Asia Pacific, due to price pressures across distribution channels and consumers switching to alternative (novel) foods. However, dairy is set to make a comeback in Western Europe as its health position is being reinforced and product innovation is centred on “snackifying” the dairy offer to compete with on-the-go products and be more versatile.
Western Europe loses leading position to Asia Pacific for first time
2016 is the first year in over a decade when Western Europe loses its leading position in dairy to Asia Pacific, due to continued decline in the West and rapid growth in the East, where dairy is becoming increasingly accepted in daily diets. In Western Europe, per capita expenditure on dairy is already one of the highest and as such has reached a ceiling for growth. Consumers instead are either switching to other foodstuffs for a more varied diet or looking for cheaper alternatives as dairy is a daily commodity where consumers can make significant savings by switching to private label alternatives. That said, dairy is set to see a resurgence in Europe as the food is being repositioned as a healthy, natural, nutritious and convenient snack, something resonating well with health-orientated consumers.
Dairy expected to improve in the future
Between 2009 and 2016, dairy in Western Europe has seen continued retail value decline with a negative CAGR of 1%. This is a lagged response to the financial crisis back in 2009 when cash-strapped consumers switched to cheaper brands or private label. However as the economy recovered, not all consumers switched back to their favourite brands and more consumers continued to shop via discounters, whose share increased dramatically. This is putting pressure on brands to add value to their dairy offerings in order to maintain share of the market where little new sales are generated. Yet things are about to change as dairy is expected to see a resurgence with a forecast 0.4% CAGR over 2016-2021 due to the food’s healthy composition. Protein, calcium and vitamin D are naturally occurring in dairy, something prized by health-conscious consumers.
Cheese is the most dominant dairy food across most markets
Cheese is by far the biggest value driver in dairy for all markets, with the exception of Spain and Ireland. France, Germany and Italy, in particular, are cheese-loving nations yet in Italy it has seen a strong decline over the years. Despite the fact that cheese is an important part of the Mediterranean diet, Italian consumers have criticised cheese for its high fat content and calorie count. In addition, the price paid for cheese continued to decline as consumers switched to the discounter channel. This is a trend seen across a number of Western European markets. At the same time, France and Germany saw a resurgence with the comeback of unpackaged cheese due to consumers seeking natural, high-quality foods with authentic flavours.