Abstract
About the market:
After several years of decline the milk and cream market is back in growth reaching almost 5 billion litres in 2005. Value growth was also up by 7% between 2000-2005. White milk accounts for 90% of market value having suddenly become sexy with added-value products that have been communicating with consumers.
Healthy eating trends are making a clear impact on the market, favouring semi-skimmed and skimmed milk. However, consumers still enjoy an indulgent treat, which helps the cream market hold onto value share. Conversely, there is increased competition from other dairy markets, most notably functional drinking yoghurt. So far in particular the flavoured milk market has managed to compete. As some sectors of the milk and cream market still suffer from a lack of innovation and marketing support, Mintel has identified opportunities to develop and grow the market, including vending, targeting certain consumer groups and optimising the use of milkmen.
Coverage:
Mintels new market intelligence report provides the user with a fresh insight into a market in a state of recovery.
Compiling together the most sought-after trend data and authoritative, independent market analysis, it offers you a vital way of fully understanding the UK retail market for milk and cream. It also offers you unique findings from exclusive consumer research; invaluable information that will enable you to tailor your business to real consumer demand. Mintels research report has been designed to help you:
- Trace UK retail sales of milk and cream and understand the market trends driving sales growth
- Track leading brands, their market share and advertising spend
- Identify key target audiences, their attitudes towards milk and the marketing messages that should be directed at the,
- Pinpoint market potential before your competitors
- Uncover new consumer demand
- Identify leading indicators and opportunities for future growth in the market
- Assess the latest development in the supply shortage fear
- Measure market sales forecasts.
Table of Contents
- Introduction and Abbreviations
- Definition
- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Executive Summary
- Domestic supply problems
- The health impact
- Value-added heroes
- Healthy and fresh perceptions
- Jostling for Supply
- Branding comes to the fore
- Impulse comes to the fore
- Fat-conscious UK affects milk market
- Price pressures for the future
- Market Drivers
- The impact of age
- Figure 1: Trends and projections in UKpopulation, by age group, 2000-10
- Are you lonely tonight?
- Figure 2: UK households and one-personhouseholds, 2000-10
- Milk juggling
- Losing relevance
- Figure 3: Household consumption of milkand cream, 1945-2000
- Figure 4: Milk usage, November 2005
- Figure 5: Household consumption ofbreakfast cereal, tea and coffee, 1945-2000
- Health, diets and allergies
- Healthy Living Blueprint for Schools
- Market Trends
- Farmgate prices
- Figure 6: Prices paid to farmers in penceper litre of milk, 2000-05
- Market struggle
- Figure 7: UK retail sales ofliquid whitemilk, liquid flavoured milk and cream, 2000-05
- Sales of milk by format
- Figure 8: UK retail sales of milk, bysector, by volume, 2001-05
- Liquid burst for flavoured milkA slow death for cannedInstant -- its about consumer interest
- White liquid milk
- Figure 9: UK retail sales of liquid whitemilk, 2000-05
- The role of price
- Figure 10: UK average price of liquidwhite milk, 2000-05
- Flavoured milk feels the squeeze
- Figure 11: UK retail sales ofready-to-drink liquid flavoured milk, 2000-05
- Learning from yogurt drinks
- Figure 12: UK average price ofready-to-drink liquid flavoured milk, 2000-05
- Cream
- Figure 13: UK retail sales of cream,2000-05
- Figure 14: UK average price of cream,2000-05
- Market Segmentation
- Liquid milk by fat content
- Figure 15: UK retail sales of liquid milk,by fat content, 2001-05
- Biggest growth in others
- Liquid milk by process
- Figure 16: UK retail sales of white liquidmilk, by process type, 2001-05
- New processes emerge
- Liquid milk by packaging
- Figure 17: UK volume retail sales of whiteliquid milk, by packaging type and size, 2001-05
- Bigger pack sizes
- Cartons less appealing
- UHT shifts to multipack
- White liquid milk by sector
- Figure 18: UK retail value sales of whiteliquid milk, by sector, 2002-05
- New consumer needs exist
- Soya sales
- Figure 19: UK volume retail sales of soyamilk, by segment, 2001-05
- Ready-to-drink flavoured milk
- Figure 20: UK retail sales ofready-to-drink flavoured milk, by lifespan, flavour and pack type,2002-05
- Figure 21: UK sales of flavoured milk andmodifiers, by sector, 2005
- Milk modifiers
- Non-dairy modifiers do well
- Cream indulgence
- Figure 22: UK retail sales of cream, bysegment, 2001-05
- Figure 23: UK volume retail sales ofcream, by segment, 2002-05
- Value in versatility
- Figure 24: UK value retail sales of cream,by segment, 2002-05
- The organic other
- Market stability -- at what price?
- Figure 25: UK average price of cream, bysegment, 2002-05
- Milk support in pockets
- Figure 26: Advertising support level,2000-05
- Dairy-free storms ahead
- The Supply Structure
- Farmers
- CAP reforms
- An exodus in domestic productio
- Milk processors
- Retailers
- Improvements have been made
- Price instability is the issue
- Brand shares
- Arla dominates
- Figure 27: Manufacturer volume shares forliquid white milk, 2001-05
- Wiseman leaps ahead through acquisition
- Flavoured milk shows a different story
- Figure 28: Manufacturer value shares forflavoured milk, 2003-05
- Figure 29: Manufacturer value shares forshort-life flavoured milk, 2005
- FRijj dominates
- Ambient brands enter the chiller
- Figure 30: Manufacturer value shares forlong-life flavoured milk, 2003-05
- Kids lead long-life
- Confectionery competes
- Brands drive support on white milk
- Figure 31: Main monitored mediaadvertising on milk and milk products, 2000-05
- Major companies and brands
- Arla Foods UK Plc
- Strong support
- Staying ahead
- Dairy Crest
- A big hit with the men
- Advance support
- Youth culture
- Moving with the times
- Dairy Farmers of Britain
- Dairy UK
- First Milk
- Grahams Dairies
- Lactalis (UK) Ltd
- Longslow Food Group
- Milk Link Holdings Ltd
- Rachels Organic
- Robert Wiseman Dairies plc
- Unilever plc
- Flavoured milk & milk modifiers
- British Sugar
- Exploring new media
- British Sugar takes out the sugar
- Britvic Beverages Limited
- Campina UK Limited
- Brand support
- Masterfoods
- My Goodness Limited
- Nestle
- Dairy alternatives
- Alpro
- The big brand feel
- Maximising the health stance
- So Good International
- Other suppliers
- A E Rodda & Son
- St Helens Farm
- WT Foods Limited
- Industry bodies
- Figure 32: Main monitored media spend onmilk and cream by industry bodies, 2000-05
- Milk Development Council (MDC) and UK National Dairy Council
- Farmers for Action (FFA)
- National Farmers Union (NFU)
- New Product Trends
- Relaxing milk
- New usage occasions
- New types of milk
- Products associated with milk
- Own-label moves closer to brands
- NPD by product claims
- Figure 33: UK New product development byclaims, October 2004-05
- UK flavour analysis
- Figure 34: UK New product development byprimary flavour, October 2004-05
- Global launches see health leaning
- Figure 35: Global new product developmentby claim, October 2004-05
- Distribution
- Convenience channel flexes its muscles
- Figure 36: Sales of white milk, by outlettype, 2002-05
- Doorsteps diminish
- Multiples move to single-sourcing
- Pack size discrepancy
- Flavoured milk taps into snacking
- Figure 37: Sales of liquid flavoured milk,by outlet type, 2003-04
- Trading considerations
- Awareness issues
- Proliferating confusion
- Cream is a planned indulgence
- Figure 38: Sales of cream, by outlet type,2003-04
- The Consumer
- Figure 39: Type of milk drunk/used,November 2005
- Looking at the alternatives
- Figure 40: Netted categories for milkdrunk/used, November 2005
- Ambient -- the old favourite
- Figure 41: Consumer profile for users ofambient milk, November 2005
- Not quite convenient enough?The alternative market
- Figure 42: Consumer profile for users ofdairy alternatives, November 2005
- Understanding buying behaviour
- Figure 43: Repertoire of types of milkpurchased/used, by demographic breakdown, November 2005
- Alternatives not the one and only
- Figure 44: Repertoire of types of milk,November 2005
- Figure 45: Consumer profile of consumersbuying three or more types of milk, November 2005
- The Consumer -- Detailed Demographics
- Figure 46: Type of milk drunk/used, bygender, age, socio-economic group, region, marital status, workingstatus, lifestage, Mintels Special Groups, media use, tenure, householdsize, ACORN group, commercial TV viewing and supermarket usage, November200
- Figure 47: Type of milk drunk/used, nettedcategories, by gender, age, socio-economic group, region, maritalstatus, working status, lifestage, Mintels Special Groups, media use,tenure, household size, ACORN group, commercial TV viewing andsupermarket
- Figure 48: Repertoire of types of milkpurchased/used, by gender, age, socio-economic group, region, maritalstatus, working status, lifestage, Mintels Special Groups, media use,tenure, household size, ACORN group, commercial TV viewing andsupermarket
- The Future and Forecast
- Doorstep potential
- Shortage in supply?
- Cream of convenience
- Creme fraiche possibilities
- Future for flavour
- The threat from yogurt
- New health benefits
- Vending opens up new opportunities
- New investment for the future?
- Milk remaining static
- Figure 55: Forecast of the UK retail whitemilk market, 2005-2010
- Flavoured milk, the fastest growing sector
- Figure 56: Forecast of the UK retailflavoured milk market, 2005-2010
- Cream still remains a treat
- Figure 57: Forecast of the UK retail creammarket, 2005-2010
- Factors used in the forecast
