Yoghurt and Sour Milk Products in Costa Rica

PROSPECTS

New line extensions continue to leverage on strong umbrella brands

As local consumers continue to adopt healthier snacking and breakfast habits, yoghurt sales keep developing at a dynamic pace, with child- and adult-orientated proposals continuing to emerge under recognised umbrella brands and through new category debutants. New value proposals keep adopting popular dietary trends, particularly meeting demand for high-protein, low-fat and low-sugar products, with Greek yoghurt continuing to gain shelf space and see new flavour options.

Packaging innovations and functional ingredients claims set the pace during 2018

New product formats, including those with crunchy cereals and granola toppings, keep gaining shelf space in line with Dos Pinos’ new value proposals targeting young adult middle- and high-income consumers, as well as in the case of recognised imported brands such as Dannon and Yo Crunch, which also target younger higher-income consumers. Other major packaging innovations are seen in Dos Pinos’ new line extension Lula Yoghurt, which, besides containing the anticipated natural ingredients and no preservatives (to suit children’s nutritional requirements and local parents’ expectations), also comes in easy-to-carry doy packs, increasing the consumption occasion potential for these products.

Added-value, functional proposals expected to continue gaining momentum

As already seen during the 2017-2018 period, added-value and functional products are expected to continue gaining momentum over the forecast period, as an expanding base of new imported and local products should increase in specialisation based on additional functional claims (particularly in the case of probiotic content and gut health benefits) and innovative formulations. In this scenario the quick development of non-dairy-based alternatives could be seen; coconut-based yoghurt and kefir proposals should begin to target well-off consumers interested in adopting vegan diets or in reducing their consumption of dairy products.

COMPETITIVE LANDSCAPE

Local dairy leader remains the main reference in yoghurt sales

The local player Cooperativa de Productos de Leche Dos Pinos maintained its dominant value share in yoghurt and sour milk drinks in 2018, leveraging on strong top-of-mind brand awareness throughout all dairy categories, which reflects its vast levels of penetration across all grocery channels throughout the country. This local manufacturer has the capacity to provide deep levels of segmentation and is capable of targeting adult and younger consumers with functional and indulgent proposals and constant innovation, which includes new flavours (and toppings), yoghurt types and packaging formats.

Sigma Alimentos maintains strength with Yoplait

Second-ranked Sigma Alimentos Costa Rica also continues to take advantage of the strong brand positioning of its licensed yoghurt brand Yoplait, which is capable of leveraging on this manufacturer’s economy-of-scale savings in terms of production and distribution on a regional scale. Yoplait brand was very proactive over the last three years of the review period, and 2018 was no exception as it launched a new yoghurt dessert line Placer as well as Greek yoghurt line extensions during the year.

New players and added-value proposals will continue to boost yoghurt sales

A combination of new added-value proposals should continue to emerge hand in hand with smaller niche-orientated players, particularly those with the capacity to target well-off local consumers interested in adopting the latest health and wellness trends. This scenario should also be reflected in the strategy of large-scale regional manufacturers such as Mexican player Lala, which made its dairy debut in Costa Rica during 2018 with its yoghurt offer.

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