After seeing retail volume and current value declines in 2020, other dairy is set to return to growth in 2021. However, sales of such products remain low via the retail channel, as other dairy products are considered to have a limited set of uses, with foodservice accounting for more than three quarters of sales.
Coffee whiteners and condensed milk are the largest categories within other dairy. However, these categories saw strong declines in 2020, as consumers are developing increasingly sophisticated palates when it comes to coffee.
With foodservice accounting for the highest sales in other dairy, companies are involved in new product development in this channel; for instance, Anchor launched a number of new products for foodservice. Originally, tea shops had to blend cheese and cream to make a cheese milk topping.
Other dairy is projected to see steady growth over the forecast period, with sales benefiting from expansion into lower-tier cities and new product development. The continued popularity of tea shops and the creamy drinks they sell, and creamy baked products in foodservice, is expected to continue to raise consumers’ awareness of such products and drive growth in retail.
Nestlé is set to consolidate its dominant position in other dairy in retail value terms in 2021, thanks to significant brand awareness and strong distribution through both online and store-based channels. The company has been able to build on brand strength established in other product areas, and notably bundles coffee whiteners with its instant coffee products in order to boost recognition and sales.
Anchor and Xiaomi have jointly launched a digital innovation in the home baking space to attract young users, with Build a Home Baking Digital Living Space being based on Xiaomi's IOT platform. In this digital living space, the two partners jointly set up the Xiaomi OTT TV Anchor Baking Channel, and then launched the Anchor certified system and advanced baking and cooking courses, taught by five-star chefs.
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This is the aggregation of chilled and shelf stable desserts, chilled snacks, coffee whiteners, condensed/evaporated milk, cream, and fromage frais and quark.See All of Our Definitions
This report originates from Passport, our Other Dairy research and analysis database.
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