Executive Summary

Sep 2019
Prospects
No cheese alternative – yet?

Cheese is the biggest dairy category in value terms and it continues to grow in both volume and value terms. There are various reasons for this.

Cheese benefits from offering a healthy yet convenient snacking option

Snacking cheese is becoming increasingly popular. Cheese is seen as a healthier snacking option than sugar-laden snacks.

Austrian consumers: “no” to GM and “yes” to good animal welfare and authenticity

Consumers are looking for naturally healthy products as well as locally produced cheese. This poses a challenge to international brands, in particular.

Competitive Landscape
Local players and private label lead the way in cheese

Domestic producers continued to lead cheese in 2019 in the shape of Berglandmilch and Gebr Woerle, with their well-known Schärdinger and Woerle brands, respectively. Consumers view these companies as high-quality domestic producers, with their products widely available through supermarkets, hypermarkets and discounters across the country.

Berglandmilch launches mini mozzarella as Die Käsemacher tempts consumers with goat milk cheese

In order to maintain its leadership in cheese, Berglandmilch naturally offers a wide variety of products, but is also quick to react to new trends. In recent years, the consumption of mozzarella has contributed to an overall increase in soft cheese consumption.

Kerrygold looking for new markets for cheddar but local player Rupp already offers an “Austrian cheddar”

With the possibility of Brexit looming large on the horizon for Irish dairy company Kerrygold, the player is looking for new markets for its products, including in the German-speaking world. With cheddar becoming more popular as it finds its way into the Austrian market, Kerrygold extended its product range in the country.

Prospects
The focus is falling increasingly on “green” oats in alternative milk products

Alternative dairy products have been on the rise for a number of years in Austria, still representing something of a niche, but enjoying consistently healthy growth rates. Overall milk consumption is declining in volume terms, but the plant-based alternatives continue to gain strength in volume terms, while cow’s milk declines.

Milk as the new energy drink?

Some recent milk drinks are being positioned as energy drinks. As consumers are aware that energy drinks contain a lot of sugar, the dairy energy drink tries to offer a healthier alternative for consumers looking for the same effect but with less sugar.

A2 milk, milk drinks or oat drinks – what will the future hold?

Consumers have a few options to choose from when it comes to milk without lactose or products that are not milk at all. A2 Milk is claimed to be a kind of milk that can be digested more easily and is enjoying increasing popularity.

Competitive Landscape
Oatly: animal welfare in one drink?

Various brands are offering milk alternatives, Alpro being the most widely known brand. More brands and private label lines are offering soy drinks as well as other drinks, based on coconut or rice, for example.

Austrian brands appeal, thanks to being both organic and regional

In Austria, domestic milk producers lead drinking milk products. They enjoy a high level of trust and offer regional products.

Private label expands in value-added organic milk and goat milk

Combined, private label continued to account for almost half of retail value sales of drinking milk products in 2019, making it a strong competitor for both domestic and international brand manufacturers. Thanks to a successful strategy of investing in premiumisation while still offering products at reasonable prices, private label players managed to attract and maintain a notable consumer base.

Prospects
War on sugar on focuses attention on healthy fats and harmful sugar

Consumers are paying more attention to the ingredients lists of the foods they purchase and consume. In addition, they are differentiating between various ingredients and their impact on their health.

Austrian consumers want organic, domestic and natural characteristics in their yoghurt

Organic yoghurt is affordable and widely distributed in all major supermarkets. Purchasing organic food, even if it costs a few cents more than non-organic products, gives consumers the feeling of contributing to more sustainable agriculture and is therefore protecting the environment.

Competitive Landscape
Domestic brands and private label lead the way in yoghurt

Austrian dairy producers and private label lines continue to lead in yoghurt and sour milk drinks. The Alpine region dominates Austria and determines its agriculture, meaning that, as in other dairy categories, Austria has a strong base for domestic producers.

Flavoured yoghurt and the sugar battle – Schärdinger’s solution

For years, flavoured yoghurt has suffered from an image of being unhealthy, containing lots of sugar and artificial flavourings. However, several traditional brands, such as Nöm’s frufru, manage to be successful, building on nostalgia and trust.

High-protein yoghurts enjoy an increasing presence in the marketplace

The German brand Ehrmann successfully launched its high-protein yoghurt in Austria. Other brands have also launched yoghurts that are high in protein, for example Nöm launched a whole range of such products.

Prospects
Health conscious consumers indulge less often but with products of a better quality

Consumers are still looking for opportunities to indulge. However, they are more likely to be indulging themselves less often, but with a better-quality product when they do, meaning that they are willing to spend more money on premium products.

Healthy indulgence means less sugar

While consumers are still looking for products as an indulgence, as they still want to enjoy a dessert, for example. At the same time, consumers are much more conscious of their sugar intake and are therefore looking for products with not too high a sugar content.

Chilled snacks – healthier than other desserts?

Chilled snacks have been successful recently, although the trend towards a healthier diet is impacting all categories, as consumers look for healthier snacks. Sweet products that are high in sugar or other additional sweeteners are particularly suffering at the hands of this trend.

Competitive Landscape
Leader Danone launches new All I Want all-natural cottage cheese product

Danone continues to lead other dairy with its brands Danone, Dany, Fruchtzwerge and Obstgarten. The company continued to focus on new product launches and major advertising activity in order to support its brands, with this helping it to register positive value sales growth.

The Chilled Snack Company – producing “Made in Austria” dairy chilled snacks

The Chilled Snack Company is an Austrian snack producer that focuses on dairy chilled snacks. It produces products both for private label players as well as branded products such as the Milka Schoko Snack.

Traditional Austrian brands to introduce plant-based alternatives?

Topfen or quark) is a traditional Austrian dairy product. It is also part of many dishes and a relatively stable product area in Austria.

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Dairy in Austria

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Austria 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 Austria, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Austria 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 Austria?
  • What are the major brands in Austria?
  • 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 Austria - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Heuwiesenmilchbutter organic butter highly valued by local consumers
Butter back in favour after earlier health fears, with healthy oils from avocados and other superfruits even being added to it
Although butter remains strong in Austria, there are niche opportunities for butter-like alternatives

COMPETITIVE LANDSCAPE

Unilever the leading butter and spreads player, but private label holds the biggest share
Savencia Fromage looking to appeal to health-conscious butter-lovers
With Brexit fast approaching, Kerrygold is looking for new markets, such as Austria

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

No cheese alternative – yet?
Cheese benefits from offering a healthy yet convenient snacking option
Austrian consumers: “no” to GM and “yes” to good animal welfare and authenticity

COMPETITIVE LANDSCAPE

Local players and private label lead the way in cheese
Berglandmilch launches mini mozzarella as Die Käsemacher tempts consumers with goat milk cheese
Kerrygold looking for new markets for cheddar but local player Rupp already offers an “Austrian cheddar”

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 Sales of Unprocessed Cheese by Type: % Value 2014-2019
Table 18 NBO Company Shares of Cheese: % Value 2015-2019
Table 19 LBN Brand Shares of Cheese: % Value 2016-2019
Table 20 Distribution of Cheese by Format: % Value 2014-2019
Table 21 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 22 Forecast Sales of Cheese by Category: Value 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

The focus is falling increasingly on “green” oats in alternative milk products
Milk as the new energy drink?
A2 milk, milk drinks or oat drinks – what will the future hold?

COMPETITIVE LANDSCAPE

Oatly: animal welfare in one drink?
Austrian brands appeal, thanks to being both organic and regional
Private label expands in value-added organic milk and goat milk

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 26 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 31 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Health conscious consumers indulge less often but with products of a better quality
Healthy indulgence means less sugar
Chilled snacks – healthier than other desserts?

COMPETITIVE LANDSCAPE

Leader Danone launches new All I Want all-natural cottage cheese product
The Chilled Snack Company – producing “Made in Austria” dairy chilled snacks
Traditional Austrian brands to introduce plant-based alternatives?

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2014-2019
Table 37 Sales of Other Dairy by Category: Value 2014-2019
Table 38 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 39 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 40 Sales of Cream by Type: % Value 2014-2019
Table 41 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 42 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 43 Distribution of Other Dairy by Format: % Value 2014-2019
Table 44 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

War on sugar on focuses attention on healthy fats and harmful sugar
Austrian consumers want organic, domestic and natural characteristics in their yoghurt

COMPETITIVE LANDSCAPE

Domestic brands and private label lead the way in yoghurt
Flavoured yoghurt and the sugar battle – Schärdinger’s solution
High-protein yoghurts enjoy an increasing presence in the marketplace

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2014-2019
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Austria - Industry Overview

EXECUTIVE SUMMARY

Convenience supports packaged food but consumers also demand healthier, local products
Health trends continue to support demand for organic and plant-based products
Intense competitive landscape led by artisanal and private label
Dominant modern grocery retailers offers convenience but consumers still partial to indulgence, benefiting artisanal bakeries
Higher current value growth supported by demand for perceived healthier products for which consumers are willing to pay

FOODSERVICE

Sales to Foodservice
Foodservice suppliers must increasingly be able to offer convenient, healthy and local meal solutions to outlets
Flexitarian lifestyles mean that suppliers must also be flexible in their foodservice options
Increasing popularity of takeaway and delivery services offer food service providers chance to capture wider audience
Consumer Foodservice
Food trucks address demand for on-the-go fresh innovative meal options
Foodservice providers must look to new opportunities to expand target audience
Time-restricted consumers increasingly turn to retailers’ on-the-go meal solutions offering competition to foodservice
Category Data
Table 60 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2014-2019
Table 65 Sales of Packaged Food by Category: Value 2014-2019
Table 66 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 67 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 68 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 69 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 70 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 71 Penetration of Private Label by Category: % Value 2014-2019
Table 72 Distribution of Packaged Food by Format: % Value 2014-2019
Table 73 Distribution of Packaged Food by Format and Category: % Value 2019
Table 74 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 75 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 76 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 77 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources