Dairy in Uruguay

Prospects

Unpaged hard cheese remains the preferred choice among consumers

Unpackaged hard cheese accounts for the majority of cheese sales in Uruguay and this is unlikely to change over the forecast period. Consumers are able to try products before buying, contrary to packaged cheese, which is an advantage when choosing products.

Cheese is firmly established in Uruguay

Cheese is well established in Uruguay. Although trends are changing in other categories, where consumers are seeking healthier choices, cheese does not seem to be affected by this trend.

Competitive Landscape

Domestic companies lead cheese

Domestic companies continued to lead cheese in 2018. The leading companies are local and small domestic players are also active.

Two domestic companies follow close behind

Naturalia ranks second, closely followed by Noliman, with both enjoying significant retail value shares. Local cheese is known as a high-quality product, especially the unpackaged options, and consumers remain loyal to their favourite brands.

International brands focus on packaged cheese

Domestic companies are firmly established in the Uruguayan market, and remain the preferred choice, particularly in unpackaged hard cheese. International companies therefore focus on packaged options, where they see major opportunities for sales and growth.

Prospects

Alternatives to milk products become more popular

Retail value sales of drinking milk products are pegged to the performance of cow’s milk sales, the largest category. Cow’s milk is the preferred choice for the majority of consumers and it remains a strong tradition in the country.

Prices of other milk alternatives set to decline

Together with greater consumer demand, an increasing number of producers are expected to produce other milk alternatives, which will likely lead to a decline in unit prices, which would make these products more affordable to mid- and low-income households. Although milk alternatives are likely to become increasingly popular, cow’s milk is set to remain the preferred choice for consumers given the significant gap price, which is expected to remain.

Flavoured milk drinks continue to target children

Flavoured milk drinks continue to be mainly consumed by the younger population, while adults traditionally favour cow’s milk or milk alternatives. Chocolate flavour milk is common in the country, as children are used to taking it with breakfast or as an afternoon snack.

Competitive Landscape

Cooperativa Nacional de Productores de Leche the undisputed leader of drinking milk products

Cooperativa Nacional de Productores de Leche has a strong hold on drinking milk products in Uruguay. The company’s products are recognised as being of good quality, and are the only option available in every store.

Small companies appearing in alternative milk products

Given the dominant position of Nacional de Productores de Leche in cow’s milk, it is difficult for small companies to compete there. However sales of milk alternatives are growing and this represents a new niche for companies, especially as the leading company has no presence in these products.

Prospects

Companies launch new yoghurt flavours

Consumers increasingly sought healthier options over the review period, with some switching their afternoon snack to a healthier option such as yoghurt. Producers took advantage of this development by advertising and launching new yoghurt flavours.

Opportunity for further innovation

Yoghurt will likely remain a snack option, especially in the afternoon, when many consumers like to have a snack, and are increasingly looking for healthier options. Launches of new yoghurt variations and innovation are therefore likely to continue.

Frozen yoghurt fails in Uruguay

Frozen yoghurt is a common option in many countries in the world as an option for consumers looking for a healthier option than ice cream, but with a similar taste. This has opened a window for yoghurt stores, where consumers can purchase yoghurt and add flavours and toppings.

Competitive Landscape

Cooperativa Nacional de Productores de Leche leads

Domestic companies, led by Cooperativa Nacional de Productores de Leche, led yogurt in 2018 in Uruguay. The leading company remains the undisputed leader, and in contrast to other dairy products, the company constantly advertises its traditional yoghurt flavours and new launches in a variety of media.

Fort-Masis in second place

Fort-Masis (GBO: Groupe Danone) held a significant share in second place in 2018, with differentiated products, such as the Ser and Activia brands, which are recognised by consumers as quality and healthy products. The competition focuses on more niche and health-orientated products, in contrast to Cooperativa Nacional de Productores de Leche, which offers more mass products.

Advertising plays a significant role in yogurt sales

Even though there is one clear leader in yoghurt, with few other companies competing, yoghurt is heavily advertised in Uruguay. With the increasing number of new flavour launches, and consumers seeking healthier and tasty options, producers advertise their products and focus on these characteristics.

Prospects

Dulce de leche boosts sales

Dulce de leche is a traditional flavoured condensed milk in the country, which is similar to caramel in other countries. The product remains one of the preferred options among consumers in many formats, such as in a variety of cooking preparations, including cake and alfajores, while some consumers choose to eat it on its own with a spoon.

Coffee whiteners remain the least popular product

Coffee whiteners are not at all common in the country. The product is only offered by a few companies, and has a limited presence in stores.

Competitive Landscape

Cooperativa Nacional de Productores de Leche leads other dairy

Cooperativa Nacional de Productores de Leche continued to lead other dairy in 2018. The company led condensed milk and cream and ranked second in chilled and shelf stable desserts.

Companies fight to lead in dulce de leche

Condensed milk products, especially dulce de leche, categorised as flavoured condensed milk, enjoy significant sales in the country. Consequently, many companies offer these products and constantly compete to gain share.

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