Executive Summary

Aug 2018
Prospects
The presence of cooperatives helps small manufacturers

Italian dairy production is largely in the hands of small, family-owned companies with few animals and limited production capacity. Although this can limit growth, given the lack of critical mass, the increasing importance of large cooperatives acts as a guarantee of quality and offers direct access to raw materials.

Sales of hard cheese continue to decline, despite holiday peaks

Parmigiano Reggiano and Grana Padano remain at the top of consumer preferences as holiday gifts, with product ageing determining the price and importance of the gift. Despite this success, however, hard cheese showed declines in both current value and volume terms in 2017.

Pecorino grows within unpackaged hard cheese

Like all other types of cheese, unpackaged hard cheese continued to decline in 2018; nonetheless, there were some differences amongst product types. Whilst provola, Scamorza, Emmenthal/Maasdam, Asiago, Montasio, fontina and other types of cheeses declined, pecorino saw growth in both current value and volume terms.

Competitive Landscape
BiG makes strong investments to remain at the top

BiG from Groupe Lactalis operates in cheese with several products and brands, both in packaged and unpackaged cheese, as well as hard and soft cheese. In recent years, the company was able to maintain its leading position; achieved largely with strong promotional activity and large investment in new product developments.

Promotional activity affects Mondelez’s growth

The performance of Mondelez Italia Services was badly affected in recent years by the strong promotional activity implemented by all large grocery retailers. Consequently, whilst some brands, such as Philadelphia, increased their sales in volume terms, value growth remained negative.

Parmareggio’s success is due to offering novelties

The Italian cheese industry has always been strongly bound to traditional products, given its long heritage and the presence of small companies. To boost its growth, Parmareggio was the first to increase the competition by launching new snack references, aimed at expanding cheese consumption outside of proper meals.

Prospects
Dairy milk continues to suffer from the competition from milk alternatives

Italian adults have always been critical of the lack of digestibility of dairy milk, thus often limiting consumption to macchiato and cappuccino in the foodservice channel. The recent growth of non-dairy products led to a further decline in dairy milk consumption, especially in the case of shelf stable milk.

Premium and local products are preferred in fresh milk

Fresh milk continued to decline both in current value and volume terms in 2018. Together with traditional fresh milk, in recent years some new references of ESL (Extended Shelf Life) milk were added by many brands and retailers.

The rebirth of almond milk

Almond milk is not a new product in Italy, as it has always been manufactured in the southern part of the country, given the large production of almonds in the area. A fresh drink in the summertime, its distribution has always remained time-limited, but also regional, given that its presence is less prominent in the north.

Competitive Landscape
Parmalat faces a decline in profitability

In 2017 and 2018, Parmalat faced a decline in its profitability, mainly due to declining sales of value-added products that have higher margins. In spite of its declining share, the company still maintained its leading position.

Granarolo continues its expansion plans

Within Granarolo’s sales, the share of milk is 35%; however, this share is expected to decline in the coming years, considering the increasing importance of other products, both dairy and non-dairy. According to the company’s strategy, exports will soon account for 40%, and the recent acquisition of Midland in the UK has made this target more feasible.

Newlat changes its name, not its focus on growth

In 2017, Newlat changed its name to Newlat Food, stressing the increased company focus on becoming a key player in the food industry in Italy. The company’s new strategic plan entails the relaunch of brands such as Giglio, Polenghi and Matese.

Prospects
Strong promotional activity supports sales of traditional products

In recent years, Italian consumers embraced health and wellness products such as organic or lactose-free products, considering them the cure for all ills. In yoghurt, traditional products suffered from the growth of novelty items, and brands had to implement strong promotional activity to drive sales.

After Greece, Iceland

Greek yoghurt was the latest innovation within yoghurt and sour milk products. Plain and flavoured, Italians appreciate the fact that it is tasty, and creamier than regular yoghurt.

Sales of drinking yoghurt are supported by promotional activity

In Italy, a large number of drinking yoghurt brands target people who want to maintain healthy gut flora, and consume such products daily. Targeting these “heavy users”, some brands have been implementing strong promotional activity, ranging from price discounts to offering free bottles in regular multipacks.

Competitive Landscape
Danone invests in new products and promotional activity

For the first time in 15 years, Danone decided to extend the portfolio for its drinking yoghurt, with the launch in early 2017 of drinking Activia reference Activia Da Bere, a 195g bottle at EUR1.25.

Granarolo launches new products to due to falling sales of traditional yoghurt

Granarolo’s sales of traditional yoghurt continue to suffer, given that consumers increasingly appreciate health and wellness products. Sales of Greek yoghurt, by contrast, were instrumental in maintaining its sales in recent years, together with specific activities such as the co-marketing between Yomo and Melinda apples.

Latte Montagna Alto Adige launches Mila Skyr

In December 2017, Mila launched Mila Skyr, a new product made according to a special yoghurt recipe from Iceland. The company has always invested in new product developments; however, innovation in the past was limited to the introduction of new and unexpected flavours, more recently combinations of exotic fruits.

Prospects
Innovation is set to drive sales of chilled dairy desserts

Chilled dairy desserts do not fall within the health and wellness trend, which was strong amongst Italian consumers in recent years. Combined with the recession and lower disposable incomes, sales of such desserts suffered, with growth strongly affected by promotional activity.

Coffee whiteners increases, driven by German discounters

German discounters continue to grow their presence in terms of outlets and sales in Italy, and besides Lidl and Penny Market, which have a long and established presence, at the beginning of 2018 Aldi opened its first store in the country. Whilst coffee whiteners are not part of Italian food tradition, German discounters prominently display them on shelves, thus driving up product visibility and sales.

Cream increases thanks to niche products

Thanks to the ongoing new product development from all the major players in cream, this category was able to recover in 2018, at least in current value terms. In fact, thanks to the launch of new health and wellness products, such as lactose-free or organic references, cream was less exposed to strong promotional activity, at least for less traditional products.

Competitive Landscape
In 2018 Ferrero launches Kinder Fetta allo Yoghurt

In April 2018, at the beginning of the spring/summer season, Ferrero introduced an addition to its Kinder Fetta chilled snacks, namely Kinder Fetta allo Yoghurt. The product is made with yoghurt instead of milk, thus having a higher content of live active culture.

Cameo extends its Ciobar line into chilled dairy desserts

Ciobar is one of Cameo’s best-selling products – it is well-known amongst Italian consumers for its powder drinking chocolate. Towards the end of 2017, Cameo launched an extension of this product line, which included three chilled desserts under the brand, more specifically three spoonable creams: Classic and Crema Variegata (with whipped cream) in 2x100g containers, as well as Ciobar Choco Shot, which comes in a 4x50g multipack.

Growth in sales of cream for Trevalli Cooperlat

Like all other manufacturers in the dairy industry, Trevalli Cooperlat had to face the increasing cost of milk. Nonetheless, its sales of cream were positive, and in 2017 the company launched new free-from references, to complement the rest of its free-from line.

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Dairy in Italy

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Overview

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

The Dairy in Italy 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 Italy?
  • What are the major brands in Italy?
  • 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.

Butter and Spreads

Cheese

HEADLINES

PROSPECTS

The presence of cooperatives helps small manufacturers
Sales of hard cheese continue to decline, despite holiday peaks
Pecorino grows within unpackaged hard cheese

COMPETITIVE LANDSCAPE

BiG makes strong investments to remain at the top
Promotional activity affects Mondelez’s growth
Parmareggio’s success is due to offering novelties

CATEGORY DATA

Table 1 Sales of Cheese by Category: Volume 2013-2018
Table 2 Sales of Cheese by Category: Value 2013-2018
Table 3 Sales of Cheese by Category: % Volume Growth 2013-2018
Table 4 Sales of Cheese by Category: % Value Growth 2013-2018
Table 5 Sales of Spreadable Processed Cheese by Type: % Value 2013-2018
Table 6 Sales of Unprocessed Cheese by Type: % Value 2013-2018
Table 7 NBO Company Shares of Cheese: % Value 2014-2018
Table 8 LBN Brand Shares of Cheese: % Value 2015-2018
Table 9 Distribution of Cheese by Format: % Value 2013-2018
Table 10 Forecast Sales of Cheese by Category: Volume 2018-2023
Table 11 Forecast Sales of Cheese by Category: Value 2018-2023
Table 12 Forecast Sales of Cheese by Category: % Volume Growth 2018-2023
Table 13 Forecast Sales of Cheese by Category: % Value Growth 2018-2023

Drinking Milk Products

Other Dairy

Yoghurt and Sour Milk Products

Packaged Food in Italy - Industry Overview

EXECUTIVE SUMMARY

Italians eat more premium and organic products, but buy less
FICO Eataly World, promoting food culture, to drive sales of local products
Niche products to grow, although hyper-segmentation can pose a threat
Back to the future, Italians prefer neighbourhood stores
Ethical sourcing and certified supply chain

FOODSERVICE

Sales to Foodservice
New product selection at Autogrill aimed at vegetarian and vegan customers
Olive oil still has potential in foodservice
New menu indications required
Consumer Foodservice
Foodservice channel is improving
Retailing versus home delivery
Foodservice channel offers flexibility and choice to consumers
Category Data
Table 14 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 15 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 16 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 17 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023

MARKET DATA

Table 18 Sales of Packaged Food by Category: Volume 2013-2018
Table 19 Sales of Packaged Food by Category: Value 2013-2018
Table 20 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 21 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 22 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 23 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 24 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 25 Penetration of Private Label by Category: % Value 2013-2018
Table 26 Distribution of Packaged Food by Format: % Value 2013-2018
Table 27 Distribution of Packaged Food by Format and Category: % Value 2018
Table 28 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 29 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 30 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 1 Research Sources