Executive Summary

Sep 2019
Prospects
Popularity and availability of organic cheese increase due to health and wellness trend

Organic cheese recorded dynamic growth in 2019 and this is expected to continue over the forecast period, despite the higher unit price of these products. The health and wellness trend encouraged companies to launch a variety of organic cheese varieties.

Packaged hard cheese set to overtake unpackaged varieties by 2022

Unpackaged hard cheese recorded a mild retail volume decline in 2019 and this is expected to continue over the forecast period, with packaged hard cheese overtaking unpackaged in terms of consumption in 2022. Packaged cheese is increasingly regarded as providing greater hygiene levels than unpackaged, with consumers’ increasingly focused on health and hygiene issues.

Soft cheese continues to surge, benefiting from affordable prices and widening range

Soft cheese recorded strong retail volume growth in 2018 and this continued into 2019, albeit at a slightly lower rate than the previous year. Beyaz peynir (white cheese) is a traditional soft cheese commonly consumed for breakfast in Turkish households, in addition to being widely used as an ingredient in cooking and as a filling for pastry.

Competitive Landscape
Private label extends lead due to offering low prices in a time of high inflation

Private label increased its overall share in cheese in 2019, due to the lower prices it was able to offer during the period of unprecedented inflation. Indeed, BIM Birlesik Magazacilik, a hard discounter and a leading grocery retailer in the country, was the leader in cheese and again increased its share in 2019.

Sütas plays on its reputation for quality at affordable prices to increase its share

Sütas remained in second place in cheese in 2019. The company benefits from its wide distribution network, which covers both traditional and modern grocery retailers.

Ak Gida benefits from new launch of thicker spreadable processed cheese

Ak Gida recorded an increase in its retail value share of spreadable processed cheese with its Ülker Icim Ücgen Peynir brand. The company’s new launch, Icim Suzme spreadable processed cheese, was a successful introduction with an affordable price and wide distribution network which includes independent small grocers.

Prospects
Higher costs of raw milk to lead to ongoing price hikes

Raw milk prices recorded significant double-digit increases in 2019. This exerted further pressure on prices of milk in particular which is expected to continue over the forecast period.

Free from lactose milk set for strong growth as more Turks become aware of their lactose intolerance

Lactose intolerance and the awareness of the condition is increasing in many countries around the world, and Turkey is no exception. Free from lactose milk recorded dynamic growth in 2019 and this is predicted to continue over the forecast period.

Discounters extends its retail value share with outlet expansion

Discounters remained the leading distribution channel for drinking milk products, again increasing its value share in 2019 due to the success of BIM Birlesik Magazacilik, as well as other discounters such as SOK and A101 Yeni Magazacilik, the latter being the grocery retailer with the greatest number of outlets in Turkey. The rapidly expanding number of outlets owned by discounters, together with the competitive prices offered by these retail channels, stimulated growth.

Competitive Landscape
BIM Birlesik Magazacilik extends its lead thanks to ongoing network expansion

The discounter, BIM Birlesik Magazacilik, extended its lead in drinking milk products with its Bim line in 2019. The company is the leading grocery retailer in Turkey in terms of value sales and expanding its number of outlets in the country meant that its sales share remained stable over the review period, with growth expected over the forecast period.

Pinar Süt Mamülleri in second place despite growing competition from private label

Pinar Süt Mamülleri’s Pinar brand ranked second in drinking milk products in 2019. The company recorded a slight decline in its overall retail value share due to increasing demand for private label products and new launches from other companies eating into its shares for organic and fortified/functional milk.

Danone Tikvesli Gida ve Icecek introduces a major launch in fortified/functional milk

Danone Tikvesli Gida ve Icecek, which is only active in flavoured milk drinks, invested in a major launch in fortified/functional milk in 2019. Its Pro+ protein-fortified product is expected to challenge the category leader, Pinar, due to the strength and reputation of the Danone brand.

Prospects
Sour milk products benefits from kefir’s reputation for range of health benefits

Sour milk products continued to record the most dynamic retail volume growth in 2019 thanks to the favourable media coverage which highlighted the healthy properties of kefir products. Kefir began to become popular among consumers due to its probiotic content.

Drinking yoghurt set to remain popular as affordable national drink

Drinking yoghurt again recorded strong retail volume growth in 2019 and this is set to continue over the forecast period. Ayran is the local form of drinking yoghurt and has a long tradition in the country.

Plain yoghurt matures in retail but continues to grow in foodservice as a pairing to many Turkish dishes

Retail volume sales of plain yoghurt continued to mature in 2019 and this is set to remain the case over the forecast period as it is a staple accompaniment to many Turkish dishes. Foodservice volume sales of plain yoghurt, however, continued to record strong growth in 2019 due to dynamic inbound tourist flows and increasing demand for traditional Turkish cuisine.

Competitive Landscape
BIM Birlesik Magazacilik extends its lead thanks to network expansion and strong focus on value

Overall, private label marginally increased its share in yoghurt and sour milk products in 2019, largely driven by the strong performance of BIM Birlesik Magazacilik, which extended its lead over the year. Given the high rate of inflation, consumers are seeking value-for-money products and the hard discounter has a strong reputation for delivering this.

Danone Tikvesli Gida ve Icecek increases its share via Pro+

Danone Tikvesli Gida ve Icecek made great steps in increasing its retail value share in yoghurt and sour milk products in 2019 with a major launch under flavoured yoghurt fortified with Pro+ protein. It claims the product is good for digestion and muscle health, whilst it is practical to consume due to its innovative stand-up pouch packaging.

Organic yoghurt benefits from the health and wellness trend

Sales of organic yoghurt are benefiting from the health and wellness trend. Pinar organic yoghurt from Pinar Süt Mamülleri has in particular performed well, and benefits from careful targeting.

Prospects
Plain fromage frais and quark benefits from health and wellness trend

Plain fromage frais and quark recorded the strongest retail volume growth in 2019 and this is likely to continue over the forecast period, driven by the health and wellness trend. Plain fromage frais largely consists of labneh-type cheese, which has become popular in the country for breakfast or when making dairy desserts at home.

Chilled snacks increasingly popular, particularly among children

Chilled snacks recorded strong retail volume growth in 2019 and is anticipated to continue to do so over the forecast period due to the popularity of these products among children as a healthy snack. The health and wellness trend among parents is increasing their awareness of the importance of protein and calcium for children, and chilled snacks are often positioned as being rich in these nutrients.

Chilled dairy desserts to benefit from high-cocoa indulgence

Chilled dairy desserts recorded good retail volume growth in 2019. These products are set to continue to become more popular thanks to the latest launches which are following the health and wellness and indulgence trends at the same time by including a higher cocoa content, such as Danone Tikvesli Gida ve Icecek’s latest launch of its Danone Danette branch with Belgian chocolate.

Competitive Landscape
BIM Birlesik Magazacilik retains its lead with value for money private label range

BIM Birlesik Magazacilik overtook the international player, Danone Tikvesli Gida ve Icecek, to take the top position in other dairy in 2018 and maintained its narrow lead in 2019. The hard discounter’s strength stems from its leading position in the Turkish grocery retail market in value terms and its presence across the country with an expanding number of outlets, making its private label products highly accessible for consumers.

Sütas and BIM Birlesik Magazacilik compete in fortified/functional fromage frais and quark

Sütas leads functional/fortified fromage and quark, closely challenged by BIM Birlesik Magazacilik’s private label line. Both companies are enjoying positive sales growth and expanding the overall category as consumers seek additional health benefits from these products.

Nestlé continues to dominate coffee whiteners but faces economy challenge

Nestlé Gida Sanayii continued to dominate coffee whiteners in 2019, although the company lost some share to smaller companies present under others. The category continued to record a retail volume decline in 2019 due to competition with milk.

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Dairy in Turkey

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Overview

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

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

Butter and Spreads

HEADLINES

PROSPECTS

Fall in consumption due to price hikes, with butter hit by rising cost of raw milk
Butter benefits from natural and increasingly healthy image
Foodservice sales benefit from growing inbound tourism

COMPETITIVE LANDSCAPE

Private label collectively takes lead as consumers seek to economise
Unilever benefits from strength in margarine and spreads but loses some share to butter manufacturers
Share of others declines, with leaders wooing consumers via quality and marketing

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

Popularity and availability of organic cheese increase due to health and wellness trend
Packaged hard cheese set to overtake unpackaged varieties by 2022
Soft cheese continues to surge, benefiting from affordable prices and widening range

COMPETITIVE LANDSCAPE

Private label extends lead due to offering low prices in a time of high inflation
Sütas plays on its reputation for quality at affordable prices to increase its share
Ak Gida benefits from new launch of thicker spreadable processed cheese

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

Higher costs of raw milk to lead to ongoing price hikes
Free from lactose milk set for strong growth as more Turks become aware of their lactose intolerance
Discounters extends its retail value share with outlet expansion

COMPETITIVE LANDSCAPE

BIM Birlesik Magazacilik extends its lead thanks to ongoing network expansion
Pinar Süt Mamülleri in second place despite growing competition from private label
Danone Tikvesli Gida ve Icecek introduces a major launch in fortified/functional 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

Plain fromage frais and quark benefits from health and wellness trend
Chilled snacks increasingly popular, particularly among children
Chilled dairy desserts to benefit from high-cocoa indulgence

COMPETITIVE LANDSCAPE

BIM Birlesik Magazacilik retains its lead with value for money private label range
Sütas and BIM Birlesik Magazacilik compete in fortified/functional fromage frais and quark
Nestlé continues to dominate coffee whiteners but faces economy challenge

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

Sour milk products benefits from kefir’s reputation for range of health benefits
Drinking yoghurt set to remain popular as affordable national drink
Plain yoghurt matures in retail but continues to grow in foodservice as a pairing to many Turkish dishes

COMPETITIVE LANDSCAPE

BIM Birlesik Magazacilik extends its lead thanks to network expansion and strong focus on value
Danone Tikvesli Gida ve Icecek increases its share via Pro+
Organic yoghurt benefits from the health and wellness trend

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 Turkey - Industry Overview

EXECUTIVE SUMMARY

Despite rising prices due to inflation packaged food offers convenience to time-restricted consumers
Price-sensitive consumers increasingly appreciate discounts and private label
Increasing polarisation amongst consumers of brands, artisanal and private label
Discounters continues to gain share through expansion and private label offer
Notable improved demand for packaged food despite ongoing rising prices

FOODSERVICE

Sales to Foodservice
Boost to foodservice due to increasing tourism amidst ongoing devaluation of Turkish lira
Inflation forces foodservice operators to search for cheaper suppliers
Government’s long-term plan to support local agriculture could reduce dependence on expensive imports
Consumer Foodservice
Another year of strong growth for foodservice, supported by increasing tourism numbers
Increasing demand for non-Turkish cuisine as local consumers become more adventurous
Online ordering and delivery platforms allow foodservice operators to expand their consumer reach

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