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

UK#FLAVOURED#MILK#2016217#
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Foreword
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.
It is also the time when many players are exploring new demographics and
developing flavoured milk propositions for more mature audiences than the
category traditionally served. The UK National Office for Statistics predicts
the 30-44 years demographic to grow rapidly over the next decade. With
flavoured milk mostly currently consumed by those under 45 years of age,
the study of this older segment is fundamental: functional drinks with clear
benefit differentiation are key.
With age, health rises as a priority for consumers and so does purchasing
power. Almost one in every five adults in the UK is 65 or over. High-protein
flavoured milk, often priced at a premium, is set to continue its growth by
developing propositions for this demographic.
At HRA Food and Drink Marketing, we believe growth needs to be consumerdriven,
rather than products being pushed at consumers by manufacturers
and processors. Flavoured milk is most fundamentally an on-the-go drink;
therefore, special attention should be paid to consumer lifestyles by brands
in order to understand how to integrate a different range of milk products into
shoppers’ daily routines, for example:
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The everyday athlete running from work to the gym who stops by the
nearest convenience store to pick up a flavoured milk sports drink to
power a workout, or recover afterwards.
The university student in search of a healthier alternative to energy drinks
who reaches for a ready-to-drink coffee as fuel for the revision week.
The active teen who carries a functional drink with a sports cap in his bag
because it’s practical and spillage-proof.
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