The UK yoghurt market continued to see value growth through 2012, increasing by 5% to reach a sales value of £1,826 million.
In half a century, the humble yoghurt has gone from hippy health food to mass market phenomenon, triggered a functional food revolution and become a multi-billion pound industry.
Taste appeal through flavour varieties and the healthy benefits of yoghurt have been the main drivers behind the continued growth within the UK yoghurt market.
With seven out of 10 people in the UK regularly eating yoghurt, it has vast appeal. Add clever branding and marketing and you have a recipe for success.
Today yoghurt is revered as a functional superfood, claiming a number of health properties. But just 60 years ago, the yoghurt market did not exist. It was only really found in health shops.
Both brands and private label have been innovating in terms of flavours and varieties, giving consumers a much wider choice and fuelling demand.
Control of the UK yoghurt market is shared between Müller Dairy (UK) and Danone, with both expected to achieve value shares of 24% in 2012.
Both companies continue to compete closely across the different distribution channels, with both having a strong brand-loyalty and driving sales through in-store promotions.
However, in terms of brands on their own, it is the Müller brand which dominates, whereas Danone performs well based on a few key brands, namely Activia, Actimel and Shape.
The UK yoghurt market is expected to post a constant value compound annual growth rate (CAGR) of 2% over the forecast period, which is slightly slower growth compared with the past few years.
This slowdown in value growth can in part be attributed to the strong competitive situation, which is resulting in widespread price promotions and undermining unit price increases.
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