Yoghurt and Sour Milk Products in Chile

2021 DEVELOPMENTS

Higher at-home consumption drives growth, especially for family packs

As there are no sales of sour milk products recorded in Chile, all sales in the category are related to yoghurt – drinking, flavoured and plain varieties. Yoghurt saw a very favourable performance in 2020, returning to solid retail volume growth after two years of decline, along with even stronger current value growth as prices increased.

Health concerns lead to demand for low-fat, high-protein and plant-based variants

Anxiety around health has unsurprisingly spiked in Chile due to the COVID-19 pandemic. Consumers are therefore increasingly seeking to optimise their diet as a way of improving their overall health.

The competitive environment demands regular new product launches

Soprole is forecast to maintain its comfortable lead in yoghurt in value terms in 2021, with Nestlé Chile, Cooperativa Agrícola & Lechera de la Union and Watt’s also holding double-digit value shares. These four companies are together expected to account for more than three-quarters of overall value sales of yoghurt in the Chilean market, in a fairly consolidated category.

PROSPECTS AND OPPORTUNITIES

Continued although slower growth as consumer habits are maintained

After two years of exceptional growth due to COVID-19, the retail volume and current value growth rates in yoghurt and sour milk products are expected to slow down moving into the forecast period, as vaccination starts to have an impact and less time is spent at home. Nevertheless, slow and solid retail volume growth rates are set to continue, along with stronger current value growth due to price rises.

More launches of plant-based products expected

In a category that is so mature in the Chilean market, products that demonstrate innovation and sustainability will have great opportunities, as consumers are becoming increasingly informed and eager to hear about new references. One area for growth is likely to be plant-based yoghurt, as not only are non-dairy products believed to be good for the health, they are also considered better for the environment, in addition to catering to those with dairy allergies or intolerances.

Companies operating in traditional distribution channels likely to perform well

E-commerce saw a dynamic increase in its share of distribution in yoghurt and sour milk products in 2020, and this is set to continue, although to a lesser extent, in 2021. However, the forecast period is expected to see a halt to the move to online shopping, as the greater opening up of store-based activities post-COVID-19 is likely to allow sales in traditional distribution channels such as supermarkets, hypermarkets and traditional grocery retailers to rebound.