Yoghurt and Sour Milk Products in Brazil

PROSPECTS

Recovery in consumer spending, desire for healthier snacking favourable for yoghurt

Sales of yoghurt increased moderately for the second consecutive year in 2019 after three years of strongly negative growth earlier in the review period. The principle reason for this return to positive growth for the category is the ongoing recovery of the Brazilian economy from the deep recession which started in 2014, which has led to improvements in consumer sentiment, including among lower-income groups.

Category players respond to rising demand by launching healthy premium options

Throughout 2018 and 2019, rising demand as consumer spending continued to recover and the return to positive sales growth in yoghurt motivated the category’s leading players to invest in the development of new products.

Drinking yoghurt a strong performer as consumers look for greater convenience

Drinking yoghurt was among the best performing yoghurt categories in 2019 as sales were supported by rising demand for convenience among an affluent, mobile and time-pressed urban consumer base. With the schedules of aspirational young urban-dwellers under increasing pressure, many are turning to drinking yoghurt as the ideal on-the-go snacking option, principally because drinking yoghurt can be consumed very and quickly easily without the need for a spoon, making it the ideal convenient and healthy snack.

COMPETITIVE LANDSCAPE

Danone’s leadership in yoghurt underpinned by its focus on high-income consumers

Danone remains the leading player in yoghurt and this is principally due to the France-based multinational company’s wide range of products that meet the needs of consumers across several income levels. Danone offers well-known brands across all yoghurt categories, including Paulista and Activia, each of which is a household name in Brazil.

New product launches at the core of Vigor’s strategy

With sales of yoghurt again on the up, local player Vigor has sought to tap into expanding demand, with several new launches seen in 2019. The packaging for the new reference Mix Vigor Granola features a small separate container containing granola fitted to the lid, with consumers able to mix the cereal into the yoghurt after purchase for maximum crunchiness and freshness.

Itambé focuses on new launches as Moo continues to bet on skyr

After major local dairy producer Itambé was acquired by France-based multinational Groupe Lactalis during the review period, 2019 saw investment in the expansion of the player’s range of yoghurts. These new references included its Natural Milk line, which is plain spoonable yoghurt made from 100% natural ingredients.

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