The Europe yogurt market iis projected to grow at a CAGR of 3.2% during the forecast period 2021-2026.
The COVID-19 pandemic has caused a significant reduction in demand for dairy products from the EU and non-EU countries. This represents a serious threat to the EU dairy sector. The situation on this market, which remained stable over the last year, has shifted: a drastic fall in prices, difficulties in exporting products, a steep increase in packaging prices, and an increase in freight prices make exports to third countries uneconomic.
The market witnessed a significant growth, due to rise in health consciousness among Europeans. This encouraged them to opt for yogurt, as it has various health benefits, like improved digestion, enhanced immune function, and a reduced risk of many diseases, including obesity. The addition of yogurt to meal plans is one of those factors contributing to the market growth.
The demand for yogurt is fuelled by the availability of numerous flavors, and growing consumer indulgence for exotic flavors, coupled with significant investments by manufactures. This prompts the manufacturers to develop products with innovative flavors to cater to the growing demand.
Additionally, with the growing trend of veganism across the Europe, the demand for non-dairy-based yogurt products is anticipated to grow at a faster rate. Owing to the large retail space and convenient conventional services, supermarkets/ hypermarkets remain as one of the most preferred points of sale for yogurt.
The European yogurt market is highly competitive with the presence of global dairy giants in the market, including Lactalis Group, Royal FrieslandCampina NV, Danone SA, Nestle SA, and Yakult Honsha.
Key Market Trends
Rising Demand For Probiotic Food And Beverages
The high prevalence of digestive disorders drives the demand for probiotic foods, across various consumer groups, globally. Yogurt, in both spoonable and drinkable form in different flavors, is the most preferred among the probiotic food. The on-going trend of healthy dietary and snacking options among the European population is yet another factor, driving the sales of probiotics, such as kombucha, yogurts, and probiotic drinks, across the region. Additionally, probiotics found in sauerkraut, pickles, and other fermented food and beverages, such as kefir, buttermilk, tempeh, kimchi, and miso, are a part of a commoner's diet in Europe. According to Yakult Konsa’s annual report, during 2017 - 2018, the United Kingdom and the Netherlands recorded a consumption of probiotic drinks of 198 and 173 (in 1,000 bottles) per day. Non-dairy probiotic products gained importance due to the ongoing swing of vegan food and due to the steep prevalence of lactose intolerance over a large European populations. Fermented fruit juices, desserts, and cereal-based products proved to be a suitable media for delivering the great potential for probiotic food products. This increased penetration of dairy and non-dairy yogurt led key players across the region to constantly invest in R&D activities for product innovation, with product claims, like low/no sugar, to capture the evolving consumer trend and gain a competitive advantage in the market.
Germany And France To Drive the Yogurt Market In Europe
Production of yogurt in Germany constituted around 22 percent of total European production of yogurt in 2020, making Germany the largest producer of yogurt in Europe. In contrast, the United Kingdom had a 6 percent production share that year. Germany and France have the largest yogurt market in terms of revenue in Europe. Germany Yogurt Market is projected to witness robust growth during the foreacast period, due to growing preference of yogurt-based drinks over sugar loaded variants available in the market due to awareness of lifestyle disorders such as obesity and diabetes. Moreover, widespread consumption of yogurt or yogurt-based products among the older generation coupled with rising popularity of low-fat Greek yogurt among consumers due to its low calorific value and the health benefits associated with the consumption of yogurt is anticipated to drive the growth of the market during the forecast period. Emerging segments such as plant-based yogurt and yogurt drinks are showing a growth in both Germany and French market. The growing popularity of dairy alternatives primarily in Germany has led to the rapid growth of plant-based yogurt. Owing to this major players in the market are launching more number of plant based yogurts than previous years. Additionally greek yogurt is also gaining great popularity among the European consumers and the market for greek yogurt is expanding at higher growth rate of about 8% during the forecast period in the region. Greek yogurt is at the forefront of the preferences of German consumers, in the context of the daily diet with natural products as well as their particularly growing awareness of products that contribute to maintaining health and well-being. Although the Netherlands and Norway have smaller yogurt markets in terms of revenue, they witnessed the highest CAGR in Europe.
The market studied is highly competitive, with major players, like Danone, Nestle, Arla Foods and FrieslandCampina, are holding major shares. An advanced distribution network gives an upper edge to the manufacturers to expand their range of products across the region. Moreover, due to the rapidly-changing consumer demands and preferences, it is crucial for players to continuously innovate to sustain and grow in the market. In order to attain a larger share in the market studied, manufacturers are revitalizing their product portfolios to present the health aspects of yogurt. The players are blending yogurt with probiotic drinks to make consumers pick the product over conventional probiotic offerings. One such example is Nestle SA, which offers probiotic ‘Bliss Plus’ yogurt drink, which contain probiotic strains for maintaining digestive health. Thus, evaluating the overall scenario, sustainable competitive advantage through innovation is the main criteria for the growth of the market share of major players across Europe.
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1.2 Scope of the Study
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.1 Plain Yogurt
5.1.2 Flavored Yogurt
5.2 By Distribution Channel
5.2.2 Convenience Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
5.3 By Category
5.3.2 Non- Dairy
5.4 By Geography
5.4.1 United Kingdom
5.4.7 Rest of Europe
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Chobani LLC
6.3.2 General Mills Inc.
6.3.3 Danone SA
6.3.4 Nestle S.A.
6.3.5 Arla Foods amba
6.3.6 Sovos Brands Intermediate, Inc.
6.3.7 Hain Celestial Group
6.3.8 MuLLER UK & IRELAND
6.3.9 Bioprox Ingredients
6.3.10 Yeo Valley
6.3.11 Emmi UK Ltd (Onken)