Yoghurt and Sour Milk Products in France

PROSPECTS

Changing consumer habits hurt yoghurt consumption

Yoghurt and sour milk products continued to decline in 2018 as the category is very mature in France and there are many options for consumers. Moreover, the emergence of the snacking trend, which is reducing the number of desserts and breakfasts eaten, is hampering yoghurts.

Niche categories become more popular

Anti-dairy campaigns have significantly hindered sales of dairy-based yoghurt. Moreover, the flexitarian diet is becoming increasingly popular among consumers as they are concerned about animal wellbeing, environmental issues surrounding intensive farming but also about eating healthier and more digestive products.

Consumers trade up from flavoured yoghurt to plain yoghurt and drinking yoghurt

While flavoured yoghurt constitutes the largest share of overall yoghurt sales in France, plain yoghurt and drinking yoghurt continued to perform better than it in 2018, probably because of health concerns regarding sugar in yoghurt. The category’s lack of naturalness is another key consumer concern, with some players being suspected of misleading consumers through their packaging illustrations when their products do not in fact contain any fruits.

COMPETITIVE LANDSCAPE

Previously strong functional and high-protein brands suffer

Danone France and Yoplait collectively dominated yoghurt and sour milk products in 2018, with both owning strong brand portfolios that cover every yoghurt category. Danone’s brands include Activia, Danacol, Taillefine, Actimel and Velouté, while Yoplait’s sales are more concentrated around its main brand, Yoplait, although it is also positioned in fruited yoghurt through Panier de Yoplait.

Naturalness and authenticity trend in new product developments

To counteract the decline in yoghurt consumption, manufacturers opted for strategies ranging from brand renewal to investment in niche categories in order to trigger value growth in 2018. Danone launched its eponymous brand Danone in plain yoghurt and flavoured yoghurt, producing it with full fat milk collected in France and using natural ingredients.

Competition intensifies within free from dairy categories

Free from dairy yoghurt was at the heart of an intense innovation effort in 2018 as several manufacturers entered or developed this category with new releases, resulting in tighter competition. Eurial Poitouraine SA for example launched five versions of oat-, almond- and rice-based yoghurts under a new brand, A bicylette, in 2017.

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