Yoghurt and Sour Milk Products in Australia

2021 DEVELOPMENTS

Stable demand for yoghurt in 2021 due to perception as versatile and convenient snack or cooking ingredient

Yoghurt is set to record another year of stable demand in 2021 as it is appreciated by Australians as a healthy and convenient snack. With health remaining at the forefront of consumers’ minds in line with wellness trends, plain yoghurt is predicted to continue on its dynamic growth trajectory offering a wide range of uses including as a breakfast with fruit or in cooking.

Pandemic supports demand for immune-boosting yoghurt variants

The pandemic has led to a growing number of Australians refocusing on consuming food as medicine to boost immunity and strengthen gut health. Nevertheless, this is a continuation of a trend already emerging in Australia with yoghurt producers generally noting the increasing demand for functional or health benefits as offered by sour milk products, which is set to record the second highest retail volume growth in 2021.

Yoghurt and sour milk products continues to experience intensifying competition in 2021

Yoplait, locally distributed by Lion Pty Ltd, is set to retain its overall leadership of yoghurt and sour milk products in 2021, although amidst intense competition from dynamic brands including Chobani and Danone (including the latter’s flavoured yoghurt brand YoPro Danone), it is likely to lose further value share. Indeed, Chobani is set to gain leadership of the dominant flavoured yoghurt from Yoplait Lite as it continues to innovate with flavours and run creative marketing campaigns.

PROSPECTS AND OPPORTUNITIES

Predicted strong performance over forecast period evidence that yoghurt and sour milk products offers potential for expansion

Yoghurt and sour milk products is predicted to record a strong performance over the forecast period through both retail and foodservice channels, with plain yoghurt set to record particularly strong growth through the latter as consumers gradually venture outside of the home environment once the threat of the pandemic wanes and restrictions are eased. The category offers plenty of potential for further development in terms of functionality and fortification, with digestive health and immune-boosting probiotics likely to be at the forefront of consumers’ and producers’ minds following the pandemic, with the wider health benefits of these products continuing to be highlighted.

Possible shift back towards convenient on-the-go packaging once consumers return to busy lifestyles

The pandemic created a shift in Australians’ behaviour which has changed how yoghurt is consumed. Spending longer periods of time at home, Australians have been moving towards larger pack formats with high protein content while there has been a decline in multipacks.

Players will continue to look at creative and innovative ways to gain consumers’ attention in increasingly fragmented environment

The competitive landscape of yoghurt and sour milk products was intensifying at the end of the review period, making it increasingly difficult to differentiate and attract consumers’ attention. Building on a consumer experience to set a brand apart from competitors has become a key point for leading flavoured yoghurt brand Chobani as it launched a limited edition of a unicorn-themed probiotic yoghurt called Unicorn Dream using its Flip packaging design.