Executive Summary

Nov 2018
Prospects
Growing consumer sophistication fuels innovation in cheese

The increasing sophistication of consumer palates was one of the main themes influencing innovation and new product development across packaged food categories in Australia over 2017-2018. In cheese, the premiumisation and foodie trends saw speciality varieties gain popularity at the expense of more traditional formats like block and shredded cheese.

Potential for development of new probiotic feta cheese products increases

The proliferation of probiotic food and beverage trends is increasingly encouraging experimentation and innovation in this area beyond traditional categories such as yoghurt and sour milk products. Cheese is a particularly interesting category in this regard.

Flavoured cheese remains an encouraging area for innovation

Australian consumers are increasingly seeking more novel and exotic flavours in many packaged food categories, particularly when it comes to savoury product types. This trend continued to drive demand for flavoured products in cheese over 2017-2018.

Competitive Landscape
Lion remains well positioned to respond to evolving speciality cheese trends

In-store promotions and the growing popularity of specialist cheese shops have played a key role in strengthening demand for speciality cheese products among Australian consumers in recent years. At the same time, these factors have led many consumers to take a greater interest in the narratives and production methods behind speciality products.

In-store product placement increasingly influential in attracting consumers

In addition to innovation and in-store promotions, product placement within retail outlets can be highly influential in generating consumer interest in individual cheese brands. According to trade interviews, cheese products positioned in the deli section of supermarkets or hypermarkets outlets are more likely to engage the curiosity of shoppers and be perceived as separate from what is considered “everyday cheese”.

Bulla Family Dairy introduces Bulla Spreadable Feta

In late 2018, Bulla Family Dairy introduced Bulla Spreadable Feta. This innovative new product was launched in response to the increased tendency for snacking and the growing demand for global flavours among Australian consumers.

Prospects
Milk alternatives stands to benefit from rising health awareness among consumers

In June 2017, Sanitarium Health Food Co introduced the So Good flavoured almond milk range in milk alternatives. This range comprises three different ready-to-drink products, which aside from almonds are also made with ingredients such as dates, coconut cream and cocoa.

Sustainability concerns fuel discussion about use of glass milk bottles

China’s announcement that it was to ban imports of many types of foreign waste from 2018 initiated a new conversation about glass milk bottles within the Australian dairy industry during the latter part of the review period. As Australians become more concerned about sustainability and the environmental impact of their consumption patterns, dairy producers are being forced to respond accordingly.

A2 Dairy launches new powder milk product made with Manuka honey

A2 Dairy Products Australia Pty Ltd introduced a new powder milk product made with manuka honey in 2018. This launch should help the company to strengthen its competitive position within drinking milk products over the forecast period, as the health benefits associated with manuka honey give the product a premium image and clearly differentiate it from competitors.

Competitive Landscape
Private label lines benefit from rising demand for full fat fresh milk

Full fat fresh milk continued to gain popularity in Australia in 2018 as consumers increasingly moved away from fat-free and semi skimmed varieties. This benefited private label products, which continued to account for a larger aggregate value share than any single branded manufacturer within fresh milk thanks to their competitive prices and growing monopolisation of retail shelf space.

Oak Plus taps into consumer demands for flavourful protein-rich products

Parmalat cemented its leading position in dairy only flavoured milk drinks towards the end of the review period with the launch of Oak Plus. The launch was well received thanks to the growing demand among Australian consumers for protein-rich products that offer both flavour and functionality.

The Complete Dairy introduces innovative cold filtration technique

The response of players in drinking milk products to rising health awareness among Australian consumers has become more pronounced in recent years, particularly in the areas of technology and marketing. Early 2018 saw The Complete Dairy launch Australia’s first all-natural, high protein and lower lactose milk product.

Prospects
Focus on product narratives helps to reignite interest in older yoghurt brands

One of the most notable global trends in yoghurt in recent years has been the increasingly important role played by product narratives and origin stories when it comes to marketing new launches and reigniting enthusiasm for older brands. In the US, for example, Yoplait successfully paid homage to its French roots towards the end of the review period with the launch of Oui by Yoplait, an artisanal-type product packaged in a glass jar.

Protein-rich yoghurt remains an encouraging area for new product development

New launches from Murray Goulburn and Chobani helped to strengthen consumer interest in protein-rich yoghurt products over 2017-2018. Murray Goulburn introduced YoPRO under the Danone brand.

Packaging innovations aim to provide greater convenience to consumers

As more Australians started consuming yoghurt throughout the day rather than solely as a breakfast food, packaging was also a key area for innovation in this category towards the end of the review period. For example, in 2018 Chobani and Brownes Dairy both introduced yoghurt products in squeezable bottles similar to those used for condiments.

Competitive Landscape
Portion control trend leads yogurt companies to embrace smaller pack sizes

Portion control has become a more influential factor in new product development within yoghurt in recent years. According to trade sources, manufacturers are increasingly offering smaller packs in response to trends such as rising health awareness, shrinking household sizes and the growing demand for fresher and more affordable products.

Successful brand messaging strategy supports value share gain for Jalna

Jalna Dairy Foods continued to strengthen its foothold in yoghurt in 2018, with a healthy value share gain moving it up one place in the overall company rankings. The company’s strong performance towards the end of the review period was partly due to its success in securing more retail shelf space for yoghurt products sold under its eponymous brand.

Prospects
Organic cream products continue to gain popularity

Rising health awareness continued to boost demand for organic cream products in Australia in 2018. One of the main beneficiaries of this trend was Barambah Organics, which as an organic-certified and Australian-owned company is ideally positioned to capitalise on the growing demand for natural and locally sourced dairy products among consumers.

Bulla extends its premium cream range with the launch of Pure Cream

Towards the end of the review period, Bulla expanded its premium cream range with the launch of Pure Cream, a new pouring-style product. As the name suggests, Pure Cream contains no additives or thickening agents.

Competitive Landscape
Lion remains the leading company in other dairy in 2018

Lion remained the overall leader in other dairy in Australia in value terms in 2018. The company continued to dominate flavoured fromage frais and quark, where it offers the Fruche brand.

Private label products maintain strong presence in other dairy categories

Thanks to the popularity of products offered by Wesfarmers Ltd, Aldi Stores Supermarkets and Woolworths Ltd, private label continued to account for a larger aggregate value share than any branded manufacturer in the other dairy category in 2018. Private label penetration was particularly high in cream and coffee whiteners.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Australia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Australia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Australia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Australia?
  • What are the major brands in Australia?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Dairy in Australia - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Premiumisation trend creates opportunities for brand differentiation in butter
Butter makes gains at the expense of margarine and spreads
Australians show growing interest in cultured butter

COMPETITIVE LANDSCAPE

Nuttelex is a leading innovator in margarine and spreads
Fonterra Brands remains the top branded player in butter and spreads
Private label penetration remains high in butter and spreads

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2013-2018
Table 2 Sales of Butter and Spreads by Category: Value 2013-2018
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2013-2018
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2013-2018
Table 5 NBO Company Shares of Butter and Spreads: % Value 2014-2018
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2015-2018
Table 7 Distribution of Butter and Spreads by Format: % Value 2013-2018
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2018-2023
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2018-2023
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2018-2023
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2018-2023

Cheese

HEADLINES

PROSPECTS

Growing consumer sophistication fuels innovation in cheese
Potential for development of new probiotic feta cheese products increases
Flavoured cheese remains an encouraging area for innovation

COMPETITIVE LANDSCAPE

Lion remains well positioned to respond to evolving speciality cheese trends
In-store product placement increasingly influential in attracting consumers
Bulla Family Dairy introduces Bulla Spreadable Feta

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2013-2018
Table 13 Sales of Cheese by Category: Value 2013-2018
Table 14 Sales of Cheese by Category: % Volume Growth 2013-2018
Table 15 Sales of Cheese by Category: % Value Growth 2013-2018
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2013-2018
Table 17 Sales of Unprocessed Cheese by Type: % Value 2013-2018
Table 18 NBO Company Shares of Cheese: % Value 2014-2018
Table 19 LBN Brand Shares of Cheese: % Value 2015-2018
Table 20 Distribution of Cheese by Format: % Value 2013-2018
Table 21 Forecast Sales of Cheese by Category: Volume 2018-2023
Table 22 Forecast Sales of Cheese by Category: Value 2018-2023
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2018-2023
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2018-2023

Drinking Milk Products

HEADLINES

PROSPECTS

Milk alternatives stands to benefit from rising health awareness among consumers
Sustainability concerns fuel discussion about use of glass milk bottles
A2 Dairy launches new powder milk product made with Manuka honey

COMPETITIVE LANDSCAPE

Private label lines benefit from rising demand for full fat fresh milk
Oak Plus taps into consumer demands for flavourful protein-rich products
The Complete Dairy introduces innovative cold filtration technique

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2013-2018
Table 26 Sales of Drinking Milk Products by Category: Value 2013-2018
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2013-2018
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2013-2018
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2014-2018
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2015-2018
Table 31 Distribution of Drinking Milk Products by Format: % Value 2013-2018
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2018-2023
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2018-2023
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2018-2023
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2018-2023

Other Dairy

HEADLINES

PROSPECTS

Organic cream products continue to gain popularity
Bulla extends its premium cream range with the launch of Pure Cream

COMPETITIVE LANDSCAPE

Lion remains the leading company in other dairy in 2018
Private label products maintain strong presence in other dairy categories

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2013-2018
Table 37 Sales of Other Dairy by Category: Value 2013-2018
Table 38 Sales of Other Dairy by Category: % Volume Growth 2013-2018
Table 39 Sales of Other Dairy by Category: % Value Growth 2013-2018
Table 40 Sales of Cream by Type: % Value 2013-2018
Table 41 NBO Company Shares of Other Dairy: % Value 2014-2018
Table 42 LBN Brand Shares of Other Dairy: % Value 2015-2018
Table 43 Distribution of Other Dairy by Format: % Value 2013-2018
Table 44 Forecast Sales of Other Dairy by Category: Volume 2018-2023
Table 45 Forecast Sales of Other Dairy by Category: Value 2018-2023
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2018-2023
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2018-2023

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Focus on product narratives helps to reignite interest in older yoghurt brands
Protein-rich yoghurt remains an encouraging area for new product development
Packaging innovations aim to provide greater convenience to consumers

COMPETITIVE LANDSCAPE

Portion control trend leads yogurt companies to embrace smaller pack sizes
Successful brand messaging strategy supports value share gain for Jalna

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2013-2018
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2013-2018
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2013-2018
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2013-2018
Table 52 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2014-2018
Table 53 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2015-2018
Table 54 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2013-2018
Table 55 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2018-2023
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2018-2023
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2018-2023
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2018-2023

Packaged Food in Australia - Industry Overview

EXECUTIVE SUMMARY

Adventurous consumer palates drive innovation across packaged food
Product narrative key in driving consumer engagement in 2018
Private label continues to capture sales from branded products
Supermarkets continue to lead food distribution
Portion control and on-the-go solutions to drive growth

FOODSERVICE

Sales to Foodservice
Health and wellness drives growth
Consumer Foodservice
Desire for new experiences and health and wellness boost the consumer foodservice performance

CATEGORY DATA

Table 59 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 60 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 61 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 62 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 63 Sales of Packaged Food by Category: Volume 2013-2018
Table 64 Sales of Packaged Food by Category: Value 2013-2018
Table 65 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 66 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 67 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 68 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 69 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 70 Penetration of Private Label by Category: % Value 2013-2018
Table 71 Distribution of Packaged Food by Format: % Value 2013-2018
Table 72 Distribution of Packaged Food by Format and Category: % Value 2018
Table 73 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 74 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 75 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 76 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources