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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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<strong>UK</strong>#FLAVOURED#MILK#<strong>2016</strong>217#<br />

#<br />

3.21 Summary<br />

•#<br />

•#<br />

•#<br />

While white milk prices continue to fall in real terms, flavoured milk<br />

provides a valuable opportunity for dairy companies to drive value and<br />

volume.<br />

o# With the decline in white milk prices throughout 2015, flavoured<br />

milk is an attractive alternative to create value for dairies in a<br />

challenging trading environment.<br />

o# The ready availability of European co-packer capacity creates a<br />

manufacturing route for brands without milk pools or processing<br />

assets. However, as there is not a wide variety of co-packers, it<br />

also drives a degree of uniformity and similarity into the category<br />

To Gain Access<br />

o# The <strong>UK</strong> is under served with dairy processing capacity.<br />

o# Consumers are increasingly Purchase interested The Full in the origin of the raw<br />

materials, especially the <strong>Report</strong> milk, but Now the case is not proven that this is<br />

a lasting trend or one that delivers true differentiation.<br />

<strong>Flavoured</strong> milk is mainly positioned as an on-the-go product<br />

o# Products are available in single serving formats with the exception<br />

of relatively few 500ml, 750ml or 1-litre cartons (i.e. Alpro, Yazoo,<br />

Blue Diamond, MOO).<br />

o# <strong>Flavoured</strong> milk is typically placed in the chilled milk, lunch<br />

promotions or cereal aisle (UHT).<br />

Asian countries, particularly China, are potential export opportunities<br />

o# The removal of the one-child policy and the current status of China<br />

as the largest flavoured milk market in the world make it an ideal<br />

target market.<br />

#<br />

© <strong>2016</strong> Teepee Limited. All Rights Reserved.<br />

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