Retail volume sales of yoghurt and sour milk products are predicted to experience a slight recovery in 2021 after the slowdown observed in 2020, driven by further demand for the smaller category of plain yoghurt, which is more affordable compared to other formats. This is a versatile format used both for cooking and snacking, and benefits from a more natural, and therefore healthier, perception compared to some drinking or flavoured variants.
The new labelling regulation, NOM-051, which entered into force in Mexico in October 2020 requires manufacturers to highlight the composition of their products including excessive quantities of certain ingredients such as fat, sugar, and sodium with highly visible black seals on the packaging, therefore creating greater awareness amongst consumers. This has encouraged manufacturers to reformulate existing products and to consider this requirement when developing new lines.
Yoghurt and sour milk products will remain highly concentrated in 2021, with the leading four players accounting for the lion’s share of total current value sales. Grupo Lala is set to retain its overall slim lead, closely followed by Danone de México and Yakult SA de CV.
Overall demand for yoghurt through retail is set to recover to pre-pandemic levels over the forecast period in line with the likelihood of a greater return to the workplace and education establishments as the threat of the pandemic wanes. This trend is therefore, likely to drive sales of both individual formats for on-the-go consumption occasions and convenient snacking, particularly of drinking yoghurt, and supporting impulse sales through forecourt retailers and convenience stores, in addition to multipacks to suit entire families for a range of consumption opportunities.
Changing consumer lifestyles also offer further opportunities for new product development. While demand for dairy-free and plant-based options remains a niche in Mexico, the trend is likely to increase within yoghurt, driven by health-conscious consumers, who either follow certain lifestyles including veganism or “flexitarianism” and want to reduce their intake of animal-sourced protein, or those who suffer from certain food intolerances.
The new labelling requirement which came into force in Mexico in October 2020 with further amendments made in April 2021 is forcing yoghurt players to review the fat and sugar content of their products. Major player Danone de México had already launched a range of yoghurts under its Vitalinea “Triple Cero %” at the end of the review period through its use of Stevia as a sweetener instead of sugar in addition to unsweetened options, a move which found favour with the Mexican Diabetes Federation.
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Understand the latest market trends and future growth opportunities for the Yoghurt and Sour Milk Drinks industry in Mexico with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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