Milk - US - April 2010
Few other consumer packaged goods products are as popular and versatile as milk. Consumers of all ages drink milk in part because there is a variety for just about everyone, including non-dairy products for those who are lactose intolerant or have milk allergies. Despite its overall popularity, the milk industry faces many of the same issues confronting the rest of the CPG industry in light of the country’s prolonged recession. Some of this is mitigated by the fact that milk is perceived as a necessity, rather than an impulse buy or an occasional treat. Many consumers also perceive milk as a nutritious item, which further helps its image.
However, there are still challenges facing the milk category, not the least of which is how to stay relevant to a new generation that is more interested in energy drinks than milk mustaches. This report aims to provide insights on the following topics:
- The recession’s impact on milk sales and consumer usage
- Competitive threats facing the industry, including internationally-sourced milk products, and cow’s milk alternatives including soy, yogurt and kefir, and goat’s milk products
- The continued increase in popularity of private label/store brands, particularly in commodity sectors like milk, and what manufacturers can do and are doing to compete effectively for market share
- Key market drivers and their influence on milk’s fortunes, including milk consumption per capita, the rise in awareness in healthy eating and aggressive price competition
- Changes in household and personal usage patterns in recent years including consumer attitudes toward milk and barriers to usage
- Consumers’ attitudes toward natural/ethical milk products including hormone-free, organic, locally-produced, and “green” packaged milk
- Kids’ usage of and parental attitudes towards milk
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