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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2.4 <strong>Flavoured</strong> <strong>Milk</strong> Market Indicators<br />
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In contrast to white milk, over the past five years, flavoured milk has<br />
shown a positive value and volume CAGR.<br />
Volume sales been strong in the <strong>UK</strong>, having grown by around a quarter<br />
over the last five years.<br />
Over the past five years flavoured milk value sales have been growing at a<br />
faster rate than volume sales, implying growth in added value products.<br />
Despite growth in volume sales, consumers are seeming to opt for lower<br />
quantities of products priced at a premium.<br />
<strong>UK</strong> consumers seem to prefer a single serve product that is tailored to<br />
their needs instead of several units or a larger volume of a less-specific or<br />
lower-quality product.<br />
Not all products in the flavoured milk category should be considered the<br />
same way. In the standard flavoured milk segment for example,<br />
discounting has typically been more intensive than in other areas such as<br />
protein drinks.<br />
White <strong>Milk</strong> Market<br />
Value sales trending<br />
downwards<br />
Volume sales seeing slight rise<br />
Difficult to increase sales as<br />
market penetration is so high<br />
Heavy long-term discounting<br />
<strong>Flavoured</strong> <strong>Milk</strong> Market<br />
Value sales on the rise<br />
Volume sales rising<br />
Considerable opportunity for<br />
market growth<br />
Regular promotional discounts<br />
2.5 <strong>Flavoured</strong> <strong>Milk</strong> Market Segmentation<br />
We estimated the proportion that each of the six different flavoured milk<br />
categories represent of the entire flavoured milk market. The percentages<br />
next to each category show our model of how much each sub-segment<br />
accounts for of the whole flavoured milk category.<br />
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to#<strong>2017</strong>#
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