Cultured Dairy - Canada - June 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Yogurt consumption flat to declining in 2017
Figure 1: Canadian retail value sales for yogurt, 2012-17
Younger consumers looking to limit their dairy intake
Figure 2: “I try and limit my dairy consumption” (% agree), women vs overall, March 2018
Canadian immigration trend may lead to shift in dairy consumption habits
Figure 3: Yogurt retail market volume consumption per capita by country, 2016
The opportunities
South Asians more likely to use creamy, drinkable dairy
Figure 4: Types of dairy products tried (select), South Asians* vs overall, March 2018
Protein remains central for younger consumers
Figure 5: Protein more important versus previous years, by age, March 2018
Boomers/seniors take a more practical approach to health
Figure 6: Considerations that are more important versus previous years (select), by age, March 2018
Parents are most interested in trying new dairy products
Figure 7: Interested in new types of dairy products (% agree), by parental status, March 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Yogurt category stagnant following consecutive years of growth
Immigration fuelling Canada’s population growth
Canada’s population is aging
MARKET PERSPECTIVE
Expansion in Canadian dairy sector
Yogurt category stagnant following consecutive years of growth
Figure 8: Canadian retail value sales for yogurt, 2012-17
Figure 9: Canadian retail value sales for yogurt, by type, 2016-17
Figure 10: Canadian retail market share by company based on value sales for yogurt, 2016-17
Figure 11: Canadian retail market share by company based on volume sales for yogurt, 2016-17
MARKET FACTORS 
Canadians are more time-pressed
Immigration fuelling Canada’s population growth
Figure 12: Top 10 countries of birth of recent immigrants, 2011-16
Canada’s population is aging
Figure 13: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Dairy companies must adapt to Canada’s changing population
Younger Canadians represent an opportunity for plant-based options
Texture to offer greater pleasure
WHAT’S WORKING?
Dairy evolves to changing eating habits
Figure 14: Stonyfield Organic Pear – Spinach – Mango Whole Milk, April 2017 (US)
Figure 15: Maple Hill Creamery Drinkable Orange Crème, March 2017 (US)
Back to the future
Figure 16: Chobani Smooth Low-Fat Classic Yogurt, August 2017 (US)
Figure 17: Oui by Yoplait Blackberry French Style Yogurt, March 2018 (US)
Figure 18: Yoplait Raspberry, Blueberry, Strawberry and Peach Whole Milk Yogurt Assortment, March 2017 (Canada)
CHALLENGES
Dairy companies must adapt to Canada’s changing population
Figure 19: Yogurt retail market volume consumption per capita, by country, 2016
Figure 20: Types of dairy products tried (select), South Asians* vs overall, March 2018
WHAT’S NEXT?
Younger Canadians represent an opportunity for plant-based options
Figure 21: Kite Hill Plain Unsweetened Artisan Almond Milk Greek-style Yogurt, January 2018 (US)
Figure 22: Silk Plant Power Plain Cultured Coconut Yogurt, January 2017 (Canada)
Figure 23: EVR Foods Original Plant-Based Yogurt with Pili Nut, January 2018 (US)
Figure 24: Raw Pressery Turmeric Almond Milk, January 2018 (US)
Texture to offer greater pleasure
Figure 25: Chobani Original Plain Whole Milk Yogurt, March 2018 (US)
Figure 26: Almond Bliss Sweet & Creamy Almond Beverage, October 2017 (Canada)
Figure 27: Siggi’s Raspberry Triple Cream Icelandic-Styled Strained Yogurt, March 2017 (USA)
Figure 28: Siggi’s Vanilla Triple Cream Icelandic-Styled Strained Yogurt, March 2017 (USA)
Figure 29: Kronfli Brothers Labni Lavender + Honey Kefir Yogurt Snack, April 2016 (USA)
Figure 30: Noosa Mates Maple Ginger Yogurt & Crunchies, July 2017 (USA)
Figure 31: Danone Activia Plain Probiotic Yogurt with Oats, Almonds & Dried Blueberries, March 2018 (Canada)
Figure 32: Danone Activia Peach-Mango Probiotic Yogurt, April 2018 (Canada)
Figure 33: Arla Protein Cottage Cheese with Red Cranberries, Figs and Almonds, March 2018 (Spain)
Figure 34: Tine 14 Cottage Cheese & Yogurt and Granola with Apple and Cinnamon, April 2018 (Norway)
Figure 35: Live Well Fat Free Smooth Cottage Cheese Plain, October 2017 (South Africa)
THE CONSUMER – WHAT YOU NEED TO KNOW 
Most consumers don’t distinguish between cultured and pasteurized dairy
Protein and calcium are becoming more important
Provenance matters to Canadians
“Practical” concerns are more important to older consumers
Parents are placing greater importance on all-natural claims
INNOVATION IN DAIRY
Most consumers don’t distinguish between cultured and pasteurized dairy
Figure 36: Importance of locally sourced dairy when selecting dairy products, by age, March 2018
Parents are most interested in trying new dairy products
Figure 37: Interested in new types of dairy products (% agree), by parental status, March 2018
Figure 38: The Collective Great Dairy for Kids Suckies Banana Fresh Whole Milk Yogurt, August 2017 (UK)
Figure 39: Dannon Danimals Strawberry Explosion & Back to School Mixed Berry Flavored Drinking Yogurt, August 2017 (UK)
Figure 40: Sassy Lassi Kids Organic Strawberry Flavored Yogurt Drink, August 2017 (US)
Figure 41: Yoplait Go-Gurt Strawberry Splash and Cool Cotton Candy Low Fat Yogurt, November 2017 (US)
Figure 42: Lifeway Organic ProBugs Goo-Berry Pie Whole Milk Kefir Cultured Milk Smoothie, November 2017 (US)
Figure 43: Organics Happy Baby Organic Yogis Strawberry Freeze-Dried Yogurt & Fruit Snacks, August 2016 (US)
Calcium remains a central reason for consuming dairy
Figure 44: Reasons for using dairy products, March 2018
Figure 45: Calcium as a reason for using dairy product, by age, March 2018
Figure 46: Help prevent osteoporosis, October 2016
Younger consumers look to limit their dairy intake
Figure 47: Interested in dairy alternatives and limiting consumption of dairy (% agree), by age, March 2018
Dips continue to be a way to infuse flavour
Figure 48: Schneider’s Bacon Horseradish Dip, January 2018 (US)
Figure 49: Schneider’s Buffalo Zip Dip, January 2018 (US)
Figure 50: Bolthouse Farms Blue Cheese Yogurt Dressing, May 2017 (Canada)
Figure 51: Bolthouse Farms Avocado Ranch Yogurt Dressing, May 2017 (Canada)
Figure 52: Kraft Indulgence Creamy Blue Cheese, May 2017 (Canada)
GENERAL NUTRITIONAL CONSIDERATIONS
Protein and calcium are becoming more important
Figure 53: Considerations that are more or less important versus previous years, March 2018
“Practical” concerns are more important to older consumers
Figure 54: Considerations that are more important versus previous years (select), by age, March 2018
Figure 55: Considerations that are more important versus previous years (select), men vs women over-55, March 2018
Protein’s importance peaks among younger adults
Figure 56: Considerations that are more important versus previous years (select), by age, March 2018
Figure 57: Percent of spoonable yogurt, drinking yogurt & liquid cultured milk with a protein/high protein claim, North America, 2010-18
Figure 58: Mein Q Plain Protein Fitness Base, March 2018 (Germany)
Figure 59: Dannon Oikos Coconut Yogurt with Wholegrain Oats & Almonds Blended Greek Yogurt, March 2018 (US)
Figure 60: Iögo Proteine Vanilla Greek Yogurt, February 2017 (Canada)
Figure 61: B'more Organic Banana Protein Smoothie, April 2018 (US)
Parents place greater importance on all-natural claims
Figure 62: Considerations that are more important versus previous years (select), by parental status, March 2018
Figure 63: Considerations that are more important versus previous years, mothers vs fathers, March 2018
Women are more likely to place greater importance on claims
Figure 64: Considerations that are more important versus previous years, by gender, March 2018
DAIRY-SPECIFIC CHOICE FACTORS
Provenance matters to Canadians
Figure 65: Claims that are important when selecting dairy products, March 2018
Figure 66: Agropur pride, February 2017
On-the-go’s importance as a claim is limited
Figure 67: Importance of the “on-the-go” claim, by age, March 2018
Health-related claims’ importance rise with age
Figure 68: Importance of health-related considerations, by age group, March 2018
Texture is key to dairy’s appeal
Figure 69: Importance of “whole ingredients” and “creamy” when selecting dairy products, by age & gender, March 2018
Figure 70: Importance of “creamy” and “smooth” when selecting dairy products, South Asians* vs overall population, March 2018
CULTURED DAIRY USAGE
Yogurt is the most widely used cultured dairy category
Figure 71: Dairy product usage, interest in using and not used, March 2018
Age impacts stated usage
Figure 72: Canadians that have tried select dairy products, by age, March 2018
Figure 73: Good Culture Classic Cottage Cheese, January 2018 (US)
Opportunity to expand usage among young men
Figure 74: Interest in trying select dairy products, men 18-34 vs overall, March 2018
Figure 75: Bakoma Pro Men High Protein Yogurt with Pears, October 2016 (France)
Figure 76: Bakoma Raspberry Flavoured High Protein Cream Cheese, December 2016 (Poland)
Figure 77: Dove Men+Care Hydration Balance Body + Face Wash, January 2018 (Canada)
Figure 78: Neutrogena Men Face Wash, March 2018 (Canada)
Opportunity to expand usage among Quebec consumers
Figure 79: Dairy products have not tried but interested in trying, Quebec vs overall, March 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations