Yoghurt and Sour Milk Products in Brazil

2021 DEVELOPMENTS

Extended isolation and reduced budgets continue to negatively impact demand for yoghurt

Following the first year under the effects of the pandemic in Brazil, home isolation routines continue to define consumption habits in many households across the country. Categories associated with convenience for on-the-go and out-of-home snacking have been negatively impacted as they are seen as non-essential items on grocery shopping lists.

Functional yoghurt in a leading space to drive consumers’ appetite

As sales of yoghurt suffered from changing consumer priorities during quarantine, a growing trend from previous years played a key role in influencing consumers’ purchasing decisions. Mainly found in drinking format, yoghurt with higher protein content was an outlier among categories, outperforming other types in the first year of the pandemic.

Competitive scenario defined by brand communication and marketing campaigns

Entering the second year of the pandemic, home isolation is now a standard routine for many families, with categories historically linked to convenience and out-of-home consumption continuing to be negatively impacted. Under this scenario, major yoghurt brands have had to find alternative strategies to stimulate sales and encourage experimentation in an attempt to drive demand for yoghurt within the new pandemic lifestyle.

PROSPECTS AND OPPORTUNITIES

Functionality for long-term immunity to place yoghurt amongst consumers’ priorities

Heightened consumer awareness linked to the health benefits of certain foods has been enhanced during the pandemic, as general concern focused on balanced diets to guarantee basic nutrition and provide stronger immunity. Shifting from a heavy focus on weight management from previous years, the new scenario for product claims in yoghurt relies on other functional properties such as fibre and protein content as well as free from lactose options.

Greek yoghurt sharing space with other claims linked to product quality and flavour

Remaining one of the most popular yoghurt types amongst Brazilian consumers, Greek yoghurt has increased its importance over the review period due to its “creamy” consistency and sour flavour. Initially introduced in the country by Vigor, the category saw other brands launch their own versions in addition to new flavour options, usually related to indulgence and as a dessert.

Diverse portfolio and continuous innovation as key competitive factors

Following a difficult period in terms of disposable incomes for many local consumers, a more positive post-pandemic scenario from 2022 onwards is expected. The advance of vaccination rates across the country will lead to a more sustainable return to outside activities while strengthening consumer confidence.