The health and wellness trend is expected to continue shaping the consumption patterns of Swiss consumers over the forecast period, and will fuel the demand for healthier food options. Increasing health-consciousness, together with public campaigns sponsored by the Federal Office of Public Health (FOPH) and major consumer associations, will continue to lead Swiss consumers to migrate to healthier dietary alternatives.
Many categories within other dairy have reached maturity, and have few growth opportunities. These are likely to be further negatively affected by the health and wellness trend.
Other dairy products are expected to continue being purchased from grocery retailers such as supermarkets, discounters and hypermarkets. However, the distribution of other dairy products is expected to move further in the direction of discounters, as Aldi and Lidl are likely to gain more of a foothold in the Swiss packaged food retail market.
Migros is expected to continue leading other dairy in Switzerland over the forecast period. Its success will continue to be due to its well-recognised private label lines, which are all perceived as high quality, and because Swiss consumers favour domestic dairy products.
Considering the sustained weakness in other dairy, many players will seek growth opportunities through the continued development and diversification of other dairy products into as many segments as possible, including economy, premium, healthy and speciality, in order to reach the maximum number of consumers. In 2018, for example, by launching Oola Secrets, a chilled dairy dessert, Emmi chose the premium indulgent innovation path in order to differentiate itself from its competitors.
The share of private label in other dairy is expected to remain significant in value terms. However, private label manufacturers will still face strong competition from manufacturers of branded products, as multinational players have higher budgets for developing new innovative product lines, and will continue to invest in marketing campaigns.
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This industry report originates from Passport, our Packaged Food market research database.