Dairy Drinks, Milk and Cream - UK - April 2013
“With three in ten users saying they rarely cook recipes that involve cream, communicating the versatility of cream as a cooking ingredient, such as with on-pack recipes, has scope to encourage usage. Year-round flavour innovation has scope to appeal to a small proportion of cream users.”
– Kiti Soininen, Head of UK Food, Drink & Foodservice Research
Some questions answered in this report include:
- What key issues should cream companies address to encourage more frequent usage of cream in cooking?
- What market trends can flavoured milk tap into to support its growth prospects?
- How can brands add value to standard white milk?
- How can brands position milk to more effectively appeal to women?
The dairy drinks, milk and cream market experienced its third consecutive year of value decline in 2012 to stand at £3.9 billion, while volume sales continued to grow, managing to reverse most of 2010’s decline to stand at 5.3 billion litres.
Rock-bottom pricing in standard white milk has been making it difficult for households to justify trading up to added-value filtered, healthy or speciality milk, while cream sales also struggled in 2012. On a more positive note, lactose-free milk and dairy alternatives are helping to support milk sales, by driving NPD in the market and recruiting new users, while flavoured milk shows little sign of running out of steam.
Widespread farmers’ protests against price deflation in the industry in summer 2012 drew the country’s attention to their plight. The outcome seems to be largely positive with several initiatives underway to make contract pricing more transparent and most major grocery multiples have raised their own-label prices to pre-2011 levels, following recent price wars. Almost one in four milk buyers will favour brands which guarantee fair pay to farmers, something which should continue to offer an incentive for retailers to raise prices paid to farmers, but also provide some scope to raise retail prices, much needed with own-labels shouldering the lion’s share of value losses in the market during 2012.
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, May 2013 report.
Flavoured milk is also included in this report, including milk flavouring (eg Nesquik, Crusha), however, ‘fermented milk drinks’ such as Yakult made with live bacterial cultures, yogurt drinks and carbonated milk-juice 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 and chilled RTD coffee drinks such as Emmi Caffè Latte, the latter being covered in Mintel’s Coffee – UK, April 2012 report.
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.
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