Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising clips
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- A bumpy ride for the $11 billion milk market
- Private label/store brands lead in major milk segments
- FDMx most popular outlets for milk purchases
- Manufacturers look to enhance attributes that make milk appealing
- Product introductions down from peak year of 2008
- Household usage holds steady
- Consumer attitudes towards natural/ethical and locally-sourced milk
- Kids’ usage and parental attitudes towards milk
- School bans on soft drinks may create opportunity for milk
Insights and Opportunities
-
- Promote whole milk’s satiety and diet properties
- Increase usage among children
- Develop Hispanic milk products
- Develop brand loyalty promotions
- Answer First Lady Michelle Obama’s call for healthier options for kids
- Energize the category with caffeinated milk
Inspire Insights
-
- Tracing the Dairy Moo-vement
- What’s it about?
- What we’ve seen
- Implications
- Experimenting with Milk
- What’s it about?
- What we’ve seen
- Implications
Market Size and Forecast
-
- Key points
- Dollar sales reflect market volatility and global demand
- Unit volume paints a different picture
- Market volatility may return in 2010
- Sales and forecast of milk
-
- Figure 1: FDMx sales of milk, at current prices, 2004-14
- Figure 2: FDMx sales of milk, at inflation-adjusted prices, 2004-14
- Figure 3: FDMx unit* volume sales of milk, 2004-09
- Walmart sales
Competitive Context
-
- Key points
- Private label makes a name for itself in milk
- Milk as a loss leader
- Laws aim to help United States compete in dairy
- Growing appeal of milk alternatives to younger consumers
Segment Performance
-
- Key points
- Skim/low-fat milk has biggest share of milk
- Whole milk gets a small fraction of sales
- Refrigerated flavored milk lone growing segment
- Sales of milk, by segment
-
- Figure 4: FDMx sales of milk, by segment, 2007-09
Segment Performance—Refrigerated Skim/Low-Fat Milk
-
- Key points
- Dollar sales only part of the story
- Unit volume provides some consistency
- Sales and forecast of refrigerated skim/low-fat milk
-
- Figure 5: FDMx sales of refrigerated skim/low-fat milk, 2004-14
- Figure 6: FDMx unit volume sales of all milk and refrigerated skim/low-fat milk, 2004-09
Segment Performance—Refrigerated Whole Milk
-
- Key points
- Dollar sales lowest since 2004
- Unit volume down for fifth year in a row
- Sales and forecast of refrigerated whole milk
-
- Figure 7: FDMx sales and forecast of refrigerated whole milk, at current prices, 2004-14
- Figure 8: FDMx unit volume sales of all milk and refrigerated whole milk, 2004-09
Segment Performance—Refrigerated Flavored Milk
-
- Key points
- Segment performs much differently than skim/low-fat and whole milk segment
- Product introductions more of a factor
- Sales and forecast of refrigerated flavored milk
-
- Figure 9: FDMx sales and forecast of refrigerated flavored milk, at current prices, 2004-14
- Figure 10: FDMx unit* volume sales of all milk and refrigerated flavored milk, 2004-09
Segment Performance—Other Milk Products
-
- Key points
- Dollar sales not as impacted by market factors
- Unit volume produces similar trends as dollars
- Sales and forecast of other milk products
-
- Figure 11: FDMx sales and forecast of other milk products, at current prices, 2004-14
- Figure 12: FDMx unit* volume sales of all milk and other milk products, 2004-09
Retail Channels
-
- Key points
- FDMx down—natural up, but no significant change
- Natural supermarkets gaining in share
- Sales of milk, by channel
-
- Figure 13: FDMx and natural supermarket sales of milk, by channel, 2007-09
Retail Channels—Supermarkets
-
- Key points
- Supermarkets riding the pricing volatility wave
- Supermarket/food stores’ sales of milk
-
- Figure 14: Supermarket/food stores’ sales of milk, at current prices, 2004-09
Retail Channels—Drug and Other
-
- Key points
- Milk increasingly important to drug and other outlets
- Drug and other stores’ sales of milk
-
- Figure 15: Drug and other stores’ sales of milk, at current prices, 2004-09
Retail Channels—Natural Foods Supermarkets
-
- Key points
- Milk sales flat in natural foods supermarkets
- Sales of milk in natural supermarkets
-
- Figure 16: Natural supermarket sales of milk, at current prices, 2008-10
- Figure 17: Natural supermarket sales of milk, at inflation-adjusted prices, 2008-10
- Leading milk companies and brands in natural supermarkets
-
- Figure 18: Natural supermarket sales of milk by company and brand, 2008 and 2010
- Organic milk natural channel sales
-
- Figure 19: Natural supermarket sales of dairy milk segment, by organic vs. non-organic, 2008-2010
Market Drivers
-
- Factors potentially impeding the milk category
- Milk is popular but it comes with a price attached
- U.S. per capita consumption stabilizing
-
- Figure 20: U.S. per capita consumption of milk & cream (in pounds), 2002-2007
- Widespread availability of milk keeps prices down
- Factors that may drive growth
- Milk’s image can be appealing to consumers looking to be healthier
-
- Figure 21: Attitude toward health maintenance and healthier foods, by gender, April 2008-June 2009
- Hispanic buying power
Leading Companies
-
- Key points
- Private label dominates milk sales
- Branded milk posts slight share gains
- Dean Foods target of anti-trust suit
- FDMx sales of milk by manufacturer
-
- Figure 22: Manufacturer FDMx sales of milk in the U.S., 2009* and 2010*
Brand Share—Refrigerated Skim/Low-Fat Milk
-
- Key points
- Private label share slips but still controls market
- Sales growth hard to come by for brands
- Dean and Hood deploy similar regional brand strategy
- Manufacturer and brand sales of refrigerated skim/low-fat milk
-
- Figure 23: Selected FDMx brand sales of refrigerated skim/low-fat milk, 2009* and 2010*
Brand Share—Refrigerated Whole Milk
-
- Key points
- Private label sales plummet but still controls market
- Dean’s thinks nationally while acting locally
- Manufacturer and brand sales of refrigerated whole milk
-
- Figure 24: Selected FDMx brand sales of refrigerated whole milk, 2009* and 2010*
Brand Share—Refrigerated Flavored Milk
-
- Key points
- Private label continues winning ways
- Nestlé only manufacturer to experience a share decline
- Manufacturer and brand sales of refrigerated flavored milk
-
- Figure 25: Selected FDMx brand sales of refrigerated flavored milk, 2009* and 2010*
Brand Share—Other Milk Products
-
- Private label uses diversification to lead the segment
- Manufacturer and brand sales of other milk products
-
- Figure 26: Selected FDMx brand sales of other milk products, 2009* and 2010*
Brand Qualities
-
- New skim milks offering creamier, richer experience
- Influence on the milk market
- Functional benefits add to milk’s healthy product profile
- Influence on the milk market
- Delivering the perfect pour
- Influence on the milk market
Innovations and Innovators
-
- Key points
- GNPD data
- Sub-category product introductions
-
- Figure 27: Milk new product launches, by segment, 2004-10*
- New product claims peaked in 2008
-
- Figure 28: Top 15 claims in milk new product launches 2004-10*
- Brands outnumber private label introductions
-
- Figure 29: Private label vs. brand new product launches, by milk segment, 2004-10,
- Figure 30: Private label vs. brand new product launches, by year, 2004-10*
- New flavored milk products
- White milk
Advertising and Promotion
-
- Overview
- Smart Balance fat-free milk
-
- Figure 31: Smart Balance fat free milk/”put a little love in your heart” television ad, March 2009
- Horizon Organic Milk/Ralph’s
-
- Figure 32: Horizon Organic Milk/Ralph’s television ad, April 2009
- Maola Milk
-
- Figure 33: Maola milk/Fresh. Local. Farmer-owned television ad, October, 2009
- Borden Milk
-
- Figure 34: Borden milk/”If it’s Borden…It’s got to be good” television ad, March, 2010
The Milk Consumer: Usage, Types and Frequency
-
- Key points
- Household usage of milk, and types used
-
- Figure 35: Trended household milk usage, total and by type, January 2004-June 2009
-
- Figure 36: Household milk usage, total and by type, by age, April 2008-June 2009
-
- Figure 37: Household milk usage, total and by type, by household income, April 2008-June 2009
- Milk usage frequency and personal milk usage
-
- Figure 38: Household milk usage frequency, by age, April 2008-June 2009
-
- Figure 39: Individual milk usage, by age, January 2010
-
- Figure 40: Individual milk usage, by household income, January 2010
- Lactose-reduced/free and shelf-stable milk usage
-
- Figure 41: Lactose-reduced/free and shelf-stable milk usage, by gender, January 2010
-
- Figure 42: Lactose-reduced/free and shelf-stable milk usage, by age, January 2010
-
- Figure 43: Lactose-reduced/free and shelf-stable milk usage, by household income, January 2010
Attitudes Towards Milk
-
- Key points
- Growth hormones, organics, local, green packaging
-
- Figure 44: Growth hormones in milk, awareness and impact on purchase, by age, January 2010
-
- Figure 45: Growth hormones in milk, awareness and impact on purchase, by household income, January 2010
- Natural/organic, ethical, local milk usage/interest
-
- Figure 46: Impact on purchase and attitudes to natural/organic/ethical/local milk usage among milk users, by gender, January 2010
- Figure 47: Impact on purchase and attitudes to natural /organic/ethical/local milk usage among milk users, by age, January 2010
-
- Figure 48: Impact on purchase and attitudes to natural /organic/ethical/local milk usage among milk users, by household income, January 2010
- Functional and probiotic dairy usage/interest
-
- Figure 49: Functional and probiotic dairy usage/interest among milk users, by age, January 2010
-
- Figure 50: Functional and probiotic dairy usage/interest among milk users, by household income, January 2010
- Quality and taste perceptions
-
- Figure 51: Quality and taste perceptions among milk users, by age, January 2010
-
- Figure 52: Quality and taste perceptions among milk users, by household income, January 2010
How and Why Consumers Use Milk in the Household
-
- Key points
- Ways of consuming/using milk
-
- Figure 53: Ways that milk is used among heavier* users, by gender, January 2010
-
- Figure 54: Ways that milk is used among heavier* users, by age, January 2010
-
- Figure 55: Ways that milk is used among heavier* users, by household income, January 2010
- Reasons for consuming/using milk
-
- Figure 56: Reasons for milk usage among heavier* users, by gender, January 2010
-
- Figure 57: Reasons for milk usage among heavier* users, by age, January 2010
Usage of Milk Alternatives/Reasons for Not Using Milk Often
-
- Key points
- Cow’s milk alternatives in use
- Health perception of soy among milk users
-
- Figure 58: Soy milk health perception among milk users, by age, January 2010
- Usage of non-dairy beverages and cow’s milk alternatives
-
- Figure 59: Usage of non-dairy beverages and cow’s milk alternatives, by age, January 2010
- Figure 60: Non-dairy beverage and cow’s milk alternative usage, by household income, January 2010
-
- Figure 61: Reasons for not using milk often among lighter* users, by age, January 2010
Kids’ Usage and Parental Attitudes Towards Milk
-
- Key points
- Milk is often purchased just for the kids
-
- Figure 62: Milk purchases by parents for kids, by household income, January 2010
- Parental attitudes towards milk and dairy alternatives
-
- Figure 63: Attitudes of parents towards, and child(ren)’s usage of milk and other beverages, by household income, January 2010
Impact of Race and Hispanic Origin
-
- Key points
- Influence of race on milk purchases
-
- Figure 64: Household milk usage, total and by type, by race/Hispanic origin, April 2008-June 2009
- Figure 65: Household milk usage frequency, by race/Hispanic origin, April 2008-June 2009
-
- Figure 66: Individual milk usage, by race/Hispanic origin, January 2010
- Figure 67: Growth hormones in milk, awareness and impact on purchase, by race/Hispanic origin, January 2010
-
- Figure 68: Impact on purchase and attitudes to natural /organic/ethical/local milk usage among milk users, by race/Hispanic origin, January 2010
- Figure 69: Quality and taste perceptions among milk users, by race/Hispanic origin, January 2010
Cluster Analysis
-
- Dairy Fans
- Demographics
- Characteristics
- Opportunity
- New Wavers
- Demographics
- Characteristics
- Opportunity
- Simplists
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
-
- Figure 70: Milk clusters, January 2010
- Figure 71: Impact on purchase and attitudes to natural/organic/ethical/local milk usage, by milk clusters, January 2010
-
- Figure 72: Quality and taste perceptions among milk users, by milk clusters, January 2010
- Figure 73: Functional and probiotic dairy usage/interest among milk users, by race/Hispanic origin and age, January 2010
-
- Figure 74: Usage of non-dairy beverages and cow’s milk alternatives, by milk clusters, January 2010
- Figure 75: Reasons for milk usage, by milk clusters, January 2010
- Cluster demographics
-
- Figure 76: Milk clusters, by gender, January 2010
- Figure 77: Milk clusters, by age group, January 2010
- Figure 78: Milk clusters, by household income group, January 2010
-
- Figure 79: Milk clusters, by race, January 2010
- Figure 80: Milk clusters, by Hispanic origin, January 2010
- Cluster methodology
Custom Consumer Groups
-
- Key points
- Race and age impact perceptions of milk
- Race/Hispanic origin and age distinctions influence attitudes towards milk
-
- Figure 81: Impact on purchase and attitudes to natural /organic/ethical/local milk usage among milk users, by race/Hispanic origin and age, January 2010
-
- Figure 82: Quality and taste perceptions among milk users, by race/Hispanic origin and age, January 2010
-
- Figure 83: Functional and probiotic dairy usage/interest among milk users, by race/Hispanic origin and age, January 2010
- Reasons for not using milk by race/Hispanic origin and age
-
- Figure 84: Reasons for not using milk often among lighter* users, by race/Hispanic origin and age, January 2010
IRI/Builders—Key Household Purchase Measures
-
- Overview of milk
- Refrigerated skim/low-fat milk
- Consumer insights on key purchase measures—refrigerated skim/low-fat milk
- Brand map
-
- Figure 85: Brand map, selected brands of refrigerated skim/low-fat milk, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
-
- Figure 86: Key purchase measures for the top brands of refrigerated skim/low-fat milk, by household penetration, 2009*
- Refrigerated flavored milk/eggnog/buttermilk
- Consumer insights on key purchase measures—refrigerated flavored milk/eggnog/buttermilk
- Brand map
-
- Figure 87: Brand map, selected brands of refrigerated flavored milk/eggnog/buttermilk, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
-
- Figure 88: Key purchase measures for the top brands of refrigerated flavored milk/eggnog/buttermilk, by household penetration, 2009*
- Refrigerated whole milk
- Consumer insights on key purchase measures—refrigerated whole milk
- Brand map
-
- Figure 89: Brand map, selected brands of refrigerated whole milk, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
-
- Figure 90: Key purchase measures for the top brands of refrigerated whole milk, by household penetration, 2009*
- Evaporated/condensed milk
- Consumer insights on key purchase measures—evaporated/condensed milk
- Brand map
-
- Figure 91: Brand map, selected brands ofevaporated/condensed milk, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
-
- Figure 92: Key purchase measures for the top brands of evaporated/condensed milk, by household penetration, 2009*
Appendix: Other Useful Consumer Tables
-
- Brands versus private label
-
- Figure 93: Quality and taste perceptions among milk users, by gender, January 2010
- Factors influencing milk usage by household income
-
- Figure 94: Reasons for milk usage among heavier* users, by household income, January 2010
- Healthfulness of soymilk by household income
-
- Figure 95: Healthfulness of soymilk, by household income, January 2010
- Why consumers don’t consume/use milk
-
- Figure 96: Reasons for not using milk often among lighter* users, by gender, January 2010
- Milk spoilage concerns
-
- Figure 97: Spoilage concerns among milk users, by age, January 2010
Appendix: Trade Associations
Back to top