Prospects seem brighter for the dairy drinks, milk and cream market than at any time since 2009, with the market in 2013 posting volume and value growth for the first time since then.
Most of the value growth was attributable to the dominant white milk segment, with sales up 2.2% in 2013 partly as a result of improved farmgate prices during 2013 following farmers’ protests the previous year. Flavoured milk propped up growth with sales up 17.4% year on year as new brands and products came to market.
Modest volume growth is expected going forward, though supported by the growth in the number of children aged 5-14. Meanwhile the improved economic outlook should offer some scope for price rises, with value sales forecast to stand at £4.7 billion in 2018.
Definition
This report examines the UK retail market for milk and cream, including products sold via doorstep delivery as well as through retail outlets. Sales of milk within the catering and industrial sectors, as well as welfare milk supplies, unless otherwise stated, are excluded.
The market for baby milk, both liquid and powder, falls outside the scope of this report and will be covered in Mintel’s Baby Food and Drink – UK, April 2014 report.
Flavoured milk is also included in this report, including milk flavouring (eg Nesquik, Crusha). ‘Fermented milk drinks’ such as Yakult made with live bacterial cultures and yogurt drinks (even though they may be positioned alongside milk and flavoured milks in grocery stores) are excluded.
Also excluded are fruit juice smoothies made with milk/cream/yogurt, when the dairy component is not the major constituent.
Alternatives to cow’s milk, including eg soya, rice and other nut, grain and seed-based milk-style drinks and goat’s and buffalo milk are included in the market size, but only account for a small share of the market.
Powdered milk except for baby milk is included, but negligible.
Cream is included in this report and refers to all kinds of fresh, aerosol and tinned cream varieties.
