Yogurt and Yogurt Drinks - UK - July 2019

OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
The market
Inflation drives sales growth over 2014-19
Further inflation and weak volume sales growth expected for 2019-24
Figure 1: UK retail value sales of spoonable and drinking yogurt, 2014-24
Spoonable yogurt volume sales rise while drinking yogurt remains flat in 2019
War on sugar continues
Companies and brands
Mixed fortunes for Müller brands
Figure 2: UK retail value sales of spoonable yogurt, by leading brands, 2018/19*
Actimel sees sales slip as competition heats up in yogurt drinks
Low fat remains the primary health claim in 2018
Advertising spend rises in 2018
Müller Corner is the most widely seen as delicious, while Activia leads on health associations
The consumer
Spoonable yogurt usage rises
Yogurt drinks enjoy more frequent uptake from users
Figure 3: Usage of yogurt and yogurt drinks, May 2019
Treating oneself is a key reason to eat spoonable yogurts
Figure 4: Reasons for eating/drinking yogurt and yogurt drinks, May 2019
A third of buyers would pay more for thick-textured products
Figure 5: Attributes seen as worth paying more for in yogurts and yogurt drinks, May 2019
Consumers’ environmental concerns impact the yogurt category
Figure 6: Behaviours relating to yogurt and yogurt drinks, May 2019
Parents’ health concerns both benefit and hinder children’s yogurts
Figure 7: Attitudes towards yogurt and yogurt drinks, May 2019
What we think
ISSUES AND INSIGHTS
Companies must demonstrate their commitment to sustainable packaging
The facts
The implications
Need for expansion in no added sugar children’s yogurts
The facts
The implications
Emphasis on live cultures is needed to strengthen digestive health associations
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Inflation drives sales growth over 2014-19
Further inflation and weak volume sales growth expected for 2019-24
Spoonable yogurt volume sales rise while drinking yogurt remains flat in 2019
War on sugar continues
MARKET SIZE AND FORECAST
Inflation drives sales growth over 2014-19
Figure 8: UK retail sales for spoonable and drinking yogurt, by value and volume, 2014-24
Ongoing retailer price competition to limit effects of inflation in 2019-24
Ageing UK population to hinder volume sales growth over 2019-24
Figure 9: UK retail value sales of spoonable and drinking yogurt, 2014-24
Figure 10: UK retail volume sales of spoonable and drinking yogurt, 2014-24
Forecast methodology
MARKET SEGMENTATION
Spoonable yogurt sales get a modest boost in 2019
Figure 11: UK retail sales of spoonable yogurt, by value and volume, 2014-19
Drinking yogurt volume sales remain largely flat in 2019
Figure 12: UK retail sales of drinking yogurt, by value and volume, 2014-19
MARKET DRIVERS
War on sugar continues
Yogurts sector makes progress on sugar reduction …
… but no added sugar claims remain niche
Children’s yogurts once again come under fire for their sugar content
New Change4Life campaign urges parents to swap to less sugary foods
Products designated as ‘Good Choices’ by Change4Life must put this front-and-centre
Consumer interest in gut health provides opportunities for yogurt
Public focus on the environment impacts the category
A third of users have cut down on dairy yogurt for environmental reasons
Environmental pledges attract interest
Yogurt/yogurt drinks packaging waste is a concern for many
Government plans add to urgency for companies to take action on plastic
Dairy price fluctuations have consequences for yogurt category
Weather extremes of 2018 drive up dairy prices
Uncertainty lingers around Brexit
Ageing UK population to hinder sales growth for spoonable yogurts
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Mixed fortunes for Müller brands
Actimel sees sales slip as competition heats up in yogurt drinks
Low fat remains the primary health claim in 2018
Advertising spend rises in 2018
Müller Corner is the most widely seen as delicious, while Activia leads on health associations
MARKET SHARE
Mixed results for Müller brands
Müller Corner revives its fortunes
Further sales decline for Müllerlight
Figure 13: Leading brands’ sales and share in the UK spoonable yogurts market, by value and volume, 2016/17-2018/19
Public focus on sugar continues to erode sales of children’s yogurts
Alpro loses momentum amid increased competition in plant-based yogurts
Total benefits from the continuing Greek yogurt trend
NPD helps own-label to grow
Actimel sees sales slide as competition heats up in yogurt drinks
Figure 14: Leading brands’ sales and share in the UK yogurt drinks market, by value and volume, 2016/17-2018/19
Figure 15: Leading brand owners’ sales and share in the UK yogurt drinks market, by value and volume, 2016/17-2018/19
LAUNCH ACTIVITY AND INNOVATION
Low fat remains the primary health claim in 2018
Figure 16: New product launches in the UK yogurt and yogurt drinks market, by top 20 claims (sorted by 2018), 2015-19
Danone releases limited edition flavours and designs for Light & Free
Figure 17: Danone Light & Free collaborates with artists and designers, 2019
Müller extends Müllerlight …
… and revives Amore
Figure 18: Examples of new L/N/R fat launches from Müller, 2019
Competition heats up in low-fat Greek-style yogurts
…including entries from specialist health and free-from brands …
… but these face competition from own-label
Figure 19: Examples of low-fat plain Greek-style yogurt launches, 2018-19
Lidl unveils Icelandic-style yogurt drinks
Figure 20: Example of Lidl Icelandic style yogurt drinks range, 2018
No added sugar claims rise in 2018
Müller develops new culture to cut sugar content
Actimel’s new Shots range offers potential rival to energy drinks
Figure 21: Actimel launches Shots range of yogurt drinks with functional health claims, 2018
Environmentally friendly packaging claims are widespread, but little real innovation
The Collective redesigns its lids to improve their recyclability
Further activity in kefir
Various brands launch spoonable kefirs
The Collective claims UK first with children’s kefir-yogurts
Figure 22: examples of spoonable kefir launches, 2018-19
Coyo unveils vegan kefir made with coconut milk
Danone extends its Light & Free brand into kefir
Figure 23: Light & Free extends into kefir, 2019
Odysea goat’s milk kefir emphasises ethics and provenance
Organic brands highlight their ethical commitments
Emphasis on care for the environment is much needed in the dairy category
Figure 24: Organic brands put the focus on ethics, 2019
Müller continues to lead on launches over 2018-19
Figure 25: New product launches in the UK yogurt and yogurt drinks market, by top 10 companies (sorted by 2018), 2015-19
Müller expands the Müller Corner range …
Figure 26: Examples of new Müller Corner launches, 2018-19
… including harnessing the unicorn trend
Figure 27: Müller harnesses the unicorn trend with Unicorner
Private label launch activity rises in 2018
Figure 28: New product launches in the UK yogurt and yogurt drinks market, by private label and branded, 2015-19
Premium launches emphasise ingredients and indulgence
The Co-op releases yogurt with gin compote
Figure 29: Examples of premium private-label yogurt launches, 2018-19
Unusual flavours help with standout
Figure 30: New product launches in the UK yogurt and yogurt drinks market, by top 10 flavours (sorted by 2018), 2015-19
Organic and niche brands explore spice and botanical flavours
Figure 31: Examples of yogurts with spice/botanical flavours, 2018-19
Sorbet- and cocktail-inspired yogurts blur the boundaries with desserts
Figure 32: Launches blurring the boundaries with desserts, 2018-19
Petits Filous unveils yogurt drink with sports cap
Figure 33: Petits Filous launches yogurt drink with sports cap, 2019
ADVERTISING AND MARKETING ACTIVITY
Advertising spend rises in 2018
Figure 34: Total above-the line, online display and direct mail advertising expenditure on yogurt and yogurt drinks, 2015-19 (sorted by 2018)
Müller remains the leading advertiser in 2018
Müllerlight continues to emphasise its links with British Athletics
Figure 35: Outdoor advert promoting Müllerlight’s reformulation, 2019
TV advert for Müller Quark emphasises the product’s Alpine origins
Danone continues to focus on Activia in 2018
Light & Free looks to evoke the feel-good factor
Link-up with artists aims for lifestyle positioning
Lifestyle positioning is needed in the yogurt category to address low brand loyalty
Arla focuses on inner strength in new Skyr advert
Emmi portrays Onken as helping people to find ‘inner happiness’
Recipe suggestions used to promote yogurts’ versatility
Yeo Valley links with bloggers to appeal to health-conscious parents
Figure 36: Example of social media post by blogger mother, later retweeted by Yeo Valley
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 37: Attitudes towards and usage of selected brands, May 2019
Key brand metrics
Figure 38: Key metrics for selected brands, May 2019
Brand attitudes: Activia is the most widely rated as caring about health and wellbeing
Figure 39: Attitudes, by brand, May 2019
Brand personality: Yeo Valley is the most widely seen as ethical
Figure 40: Brand personality – macro image, May 2019
Müller Corner scores highest on taste associations
Figure 41: Brand personality – micro image, May 2019
Brand analysis
Müller Corner scores highest on taste associations
Figure 42: User profile of Müller Corner, May 2019
Activia comes top for health associations
Figure 43: User profile of Activia, May 2019
Yeo Valley does well on ethical and natural associations
Figure 44: User profile of Yeo Valley, May 2019
Müllerlight has something of a health halo, but also does well on the fun factor
Figure 45: User profile of Müllerlight, May 2019
Arla Skyr’s high protein proposition drives higher usage among women
Figure 46: User profile of Arla Skyr, May 2019
Yakult comes a close second to Activia on health perceptions
Figure 47: User profile of Yakult, May 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
Spoonable yogurt usage rises
Yogurt drinks enjoy more frequent uptake from users
Treating oneself is a key reason to eat spoonable yogurts
A third of buyers would pay more for thick-textured products
Consumers’ environmental concerns impact the yogurt category
Parents’ health concerns both benefit and hinder children’s yogurts
USAGE OF YOGURT AND YOGURT DRINKS
Spoonable yogurt usage rises
Figure 48: Usage of yogurt and yogurt drinks, May 2019
Ageing UK population to hinder yogurt sales growth
Slowing growth in child population to limit yogurt sales growth
A quarter of adults drink yogurt drinks
Drinking yogurts see more frequent usage than spoonable
Figure 49: Usage frequency for yogurt and yogurt drinks, May 2019
REASONS FOR EATING/DRINKING YOGURT AND YOGURT DRINKS
Spoonable yogurt has fairly strong treat associations
Figure 50: Reasons for eating/drinking yogurt and yogurt drinks, May 2019
The feel-good factor can be pushed more strongly in advertising
Digestive health associations linger around yogurt
Companies could take greater advantage of the consumer focus on gut health
Yogurt drinks lead on immune health associations
Energy-boosting qualities are especially valued by under-35s
Certain ingredients spark energy associations
Figure 51: International examples of yogurts/yogurt drinks with ginseng and guarana, 2019
ATTRIBUTES SEEN AS WORTH PAYING MORE FOR IN YOGURTS AND YOGURT DRINKS
A third of yogurt/yogurt drink buyers would pay more for thick textures
Opportunities for expansion in thicker-textured yogurt drinks
Figure 52: Attributes seen as worth paying more for in yogurts and yogurt drinks, May 2019
Innovative flavours appeal especially to under-25s
Unusual flavours help challenger brands to differentiate themselves
Competitions and seasonal flavours should help to engage consumers
Figure 53: International examples of yogurts with seasonal flavours, 2018-19
A quarter of buyers would pay more for high animal welfare
High animal welfare is underexplored within the yogurts category
Tangible statements on animal welfare can help to boost products’ appeal
Figure 54: Example of spoonable yogurt with a tangible on-pack statement relating to animal welfare, 2019
BEHAVIOURS RELATING TO YOGURT AND YOGURT DRINKS
Yogurt packaging’s environmental impact is a concern to many
Figure 55: Behaviours relating to yogurt and yogurt drinks, May 2019
Environmentally friendly packaging has wide appeal
International brands reduce plastic use and explore alternatives to oil-based plastics
Figure 56: International brands explore eco-friendly packaging options, 2019
Concerns around plastic boost the image of alternative packaging formats
Figure 57: Example of spoonable yogurt in glass jar, 2018
Opportunities for cartons with a strong environmental angle
Figure 58: International examples of yogurt drinks with sustainable habitat/resources claims relating to packaging, 2018-19
A third of users have cut back on dairy yogurts/yogurt drinks for environmental reasons
Non-dairy yogurts could do more to promote their environmental credentials
Spelling out environmental commitments can help to add value
Promotions underpin low brand loyalty within the category
Flavour innovation offers an alternative means to appeal to shoppers
ATTITUDES TOWARDS YOGURT AND YOGURT DRINKS
Parents’ health concerns both benefit and hinder children’s yogurts
Figure 59: Attitudes towards yogurt and yogurt drinks, May 2019
Unflavoured yogurts for children are an unrealised opportunity
Figure 60: International examples of unflavoured yogurts aimed at children, 2017-19
References to PHE calorie guidelines should help strengthen products’ healthy image
Opportunities for children’s yogurts with strong digestive health focus
Live cultures are widely associated with supporting digestive health
Especially important for spoonable yogurts to flag up their live cultures
Figure 61: Example of spoonable yogurt naming its live cultures on-pack, 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 62: Forecast of UK sales of spoonable and drinking yogurt, by value, best- and worst-case, 2019-24
Figure 63: Forecast of UK sales of spoonable and drinking yogurt, by volume, best- and worst-case, 2019-24
APPENDIX – ADVERTISING AND MARKETING ACTIVITY
Figure 64: Total above-the line, online display and direct mail advertising expenditure on yogurt and yogurt drinks, by top three advertisers, 2015-19 (sorted by 2018)