Yoghurt and Sour Milk Products in Poland

PROSPECTS

Private label introduces new sour milk products

Kefir has a long history and well-established position within sour milk products in Poland and for many years there were few alternatives available other than buttermilk and plain sour milk. However, Turkish ayran yoghurt drink has recently been introduced nationally by Lidl Polska Sklepy Spozywcze under its Pilos private label line.

Drinking and plain yoghurt benefit from hectic lifestyles and the health and wellness trend

Plain yoghurt is regarded as a healthy choice and benefits from the health and wellness trend. It is a major part of a balanced diet, while drinking yoghurt additionally benefits from the snacking and on-the-go consumption trends.

Low prices can discourage players from investing in innovation

The low price levels of yoghurt and sour milk products can prevent players from developing new product formats. One interviewed company had considered launching fortified/functional yoghurt in the form of shots, but, in order to be profitable, its price would have to be well above the average price of fortified/functional products and the player felt that Polish customers would probably therefore not be interested.

COMPETITIVE LANDSCAPE

Zott Polska extends its lead thanks to trend-led innovation

Danone led yoghurt and sour milk products until 2018 when Zott Polska replaced it as the leading player. Although Danone controls a wide portfolio of products and well-known brands in yoghurt and sour milk products, such as Danone, Actimel, Activia, Fantasia and Kefir, it is losing its grip on sales in Poland due to a lack of innovative ideas to distinguish its products and apply them to contemporary consumers.

Growth supported by new products and formats

Retail volume growth of yoghurt and sour milk products has been supported by introducing new variants of existing products. Greek yoghurt was the first example of this, and towards the end of the review period skyr entered the country.

Private label loses share as brands compete on price

Although private label has a strong share in yoghurt and sour milk products, it does struggle to compete with the major players. Price competition is intense between the leaders, Zott Polska, Danone and Bakoma, and thus private label can lose its competitive advantage, especially as some consumers still regard private label products as being of lower quality.

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