Yoghurt and Sour Milk Products in France

2020 IMPACT

Marginal improvement for yoghurt during lockdown due to versatility in terms of snacking and cooking, while sour milk products benefits from immune-boosting properties

Retail volume sales of yoghurt and sour milk products experienced a marginal improvement in growth terms in Q2 2020, as lockdown measures resulted in a higher number of consumers purchasing these products due to their versatility in terms of snacking, treats, and cooking. Although there has been some demand within dairy in general for full fat and less processed options amongst health-conscious consumers, resulting in ongoing declines for flavoured yoghurt, drinking yoghurt, which has a more processed and sugar-laden perception in France, experienced one of the stronger performances during lockdown.

Danone retains overall leadership but experiences growing competition from smaller brands with premium health-positioned options

Danone France SA retained its overall leadership of yoghurt and sour milk products in Q2 2020, offering a wide range of brands within flavoured, drinking and plain yoghurt with its popular brands Activia, Actimel and Velouté, although Activia flavoured yoghurt continued to decline value sales terms due to its more processed image. Encouraged by more positive demand for plain yoghurt, Danone launched new skyr and Greek yoghurt brands towards the end of the review period in response to ongoing health trends.

Forecourt retailers loses further ground due to limited on-the-go snacking occasions while convenience stores and e-commerce are strongest performers during lockdown

While supermarkets and hypermarkets retained their dominance as distribution channels for yoghurt and sour milk products during lockdown, offering a wide range of products in addition to competitive prices in terms of their own private label ranges, both lost marginal value share in Q2 as some consumers avoided major grocery retailers due to concerns over spending long periods of time in public spaces with the virus in circulation. Forecourt retailers, on the other hand, a notable channel for this category as it offers products that address demand for on-the-go and snacking occasions, continued to lose its growth momentum as consumers were more restricted in their movements, including travelling, during the initial stages of lockdown.

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