Yoghurt and Sour Milk Products in Poland

2021 DEVELOPMENTS

Extended periods of time spent at home in the first half of the year sustains demand for yoghurt and sour milk products in 2021

As the pandemic goes on and consumers in Poland continue to work remotely from home, demand for yoghurt and sour milk products remains high in 2021, with consumers dedicating more time to cooking, driving demand for plain yoghurt (which continues to benefit from its healthy perception as a natural product), and snacking. Stronger demand for sour milk products on the other hand (offered by the well-established kefir), is driven by the perception that they help boost gut health, and thereby the immune system, with products that offer higher levels of probiotics.

Players continue to expand portfolios to address different health trends

Zott Polska Sp zoo strengthens its overall lead of yoghurt and sour milk products in 2021, leading the larger areas of flavoured and drinking yoghurt, whilst gaining value share within the more dynamic sour milk products and plain yoghurt as it continues to closely follow current consumer trends, ensuring its plain yoghurt enjoys a strong position within discounters, the leading distribution channel within yoghurt and sour milk products. Former leader Danone offers a wide portfolio of products and well-known brands in yoghurt and sour milk products, such as Danone, Actimel, Activia, and Fantasia, but continues to lose ground in Poland due to a lack of innovative ideas to distinguish its products and apply them to contemporary consumers, although in line with the strong performance of sour milk products during the pandemic, its brand Kefir manages to gain marginal value share.

Strong growth for e-commerce during lockdown, offering wider range of organic products

While discounters and convenience stores strengthened their distribution of yoghurt and sour milk products during the pandemic, the nascent channel of e-commerce gained value share and continues to record impressive current value growth in 2021, albeit from a low base. Consumers who are searching for a wider offer of organic products are well served by this channel, with online store organic24.

PROSPECTS AND OPPORTUNITIES

Notable shift in channel demand in 2022 results in return to normalisation for retail but convenience trends likely to come to the fore

2022 is predicted to see a shift in channel demand for yoghurt and sour milk products as foodservice outlets resume activity at full capacity and COVID-19 related restrictions are further eased, while retail volume sales are set to return to normalisation in terms of purchasing behaviour, a trend set to continue for the remainder of the forecast period. Nevertheless, certain trends will remain relevant or come to the fore, with convenience likely to play a stronger role as consumers gradually return to their daily routines.

Plain yoghurt benefiting from natural image and versatility to continue to record strongest performance over the forecast period

While recording slower retail volume growth compared to 2021, plain yoghurt is still predicted to record the strongest performance overall, as it is regarded as a healthy choice and benefits from the health and wellness trend. Plain yoghurt will continue to be a major part of a balanced diet, and offers greater versatility in terms of meal preparation.

Plant-based niche offers further potential for expansion and growth within yoghurt

Plant-based yoghurt is likely to offer further potential for growth in line with various health and lifestyle trends in Poland, as witnessed in other dairy product areas including cheese, and drinking milk products (milk alternatives). Plant-based yoghurt is likely to continue to attract small local producers which will experiment with different novel plant sources, allowing the niche to expand, as seen by Planton from Jogurty Mada which secured distribution through major retailer Auchan towards the end of the review period.