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FREE-UK-Flavoured-Milk-Report-2016-2017

The backdrop to the UK flavoured milk market is one of relentless change. The removal of the EU milk quotas, the transition to a Western-type diet by emerging economies, the UK sugar debate and the booming sports nutrition industry are all aspects of change that create both challenges and opportunities for the UK flavoured milk market. HRA Food and Drink Marketing has developed this report as a map to guide industry stakeholders. Although volume growth in 2014 was slightly lower than in previous years, the flavoured milk market still has plenty of room for product innovation and development. Overall, we expect the UK flavoured milk market to continue to grow over the medium term, but not without improving its nutritional profile. The sugar debate reached new heights when, in October 2015, Public Health England released a document suggesting Government intervention in the form of a sugar tax (levy). As a consequence, product reformulation has become a priority for all serious players in the market.

The backdrop to the UK flavoured milk market is one of relentless change. The removal of the EU milk quotas, the transition to a Western-type diet by emerging economies, the UK sugar debate and the booming sports nutrition industry are all aspects of change that create both challenges and
opportunities for the UK flavoured milk market.

HRA Food and Drink Marketing has developed this report as a map to guide industry stakeholders. Although volume growth in 2014 was slightly lower than in previous years, the flavoured milk market still has plenty of room for product innovation and development.

Overall, we expect the UK flavoured milk market to continue to grow over the medium term, but not without improving its nutritional profile. The sugar debate reached new heights when, in October 2015, Public Health England released a document suggesting Government intervention in the form of a sugar tax (levy). As a consequence, product reformulation has become a priority for all serious players in the market.

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6.! The Future of the Market<br />

There are various political, technological, social and environmental factors<br />

set to impact the global flavoured milk market.<br />

In terms of political factors, the removal of EU milk quotas has already had<br />

an impact on milk production and is restraining dairy commodity prices as a<br />

consequence of global oversupply. The performance of the wider dairy<br />

market clearly has a significant impact on the flavoured milk market and<br />

currently means flavoured milk is a particularly attractive opportunity to add<br />

value back into dairy. The abolition of the one child policy is another factor<br />

likely to have an impact on the global flavoured milk market. With an<br />

impending rise in the number of children in China, this represents a<br />

significant opportunity for the dairy market as a whole but in the flavoured<br />

milk market in particular. Other political factors more relevant to the <strong>UK</strong><br />

specifically are a potential exit from the EU and the possibility of a sugar tax.<br />

In terms of technological impacts, the development of alternative sweeteners<br />

without the negative associations To Gain of some Access artificial ingredients also signifies<br />

an important development for Purchase the flavoured The milk Full market. Looking at the <strong>UK</strong><br />

specifically, another factor which<br />

<strong>Report</strong><br />

has a substantial<br />

Now<br />

impact on the market is<br />

the facilities available in the country. Currently there is a lack of contract<br />

manufacturers able to produce flavoured milk in UHT plastic bottles, hence<br />

the majority of UHT products being produced on the continent.<br />

There are various social factors likely to impact on the demand for flavoured<br />

milk in general and which will also determine how additional value can be<br />

added to flavoured milk products. Growing support for British farmers has<br />

already impacted how consumers purchase within the white milk market with<br />

the <strong>Milk</strong> for Farmers brand performing well. An ageing population is another<br />

important factor to be considered by all food and drink brands as consumer<br />

needs change. An increase in hectic lifestyles and a growing interest in plant<br />

based diets are both factors which have already impacted the food and drink<br />

market with on-the-go propositions and dairy alternatives both seeing good<br />

growth.<br />

In terms of environmental considerations, a tax on carbon emissions<br />

associated with animal derived products is another factor likely to have an<br />

impact on the flavoured milk market.

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