Yoghurt and Sour Milk Products in Portugal

2020 IMPACT

Yoghurt and sour milk products that offer functional benefits expected to perform best in 2020

Despite expecting relatively stagnant growth for yoghurt and sour milk products in both retail volume and current value terms in 2020, it is an improvement from generally declining growth rates in 2019. Because of lockdown restrictions, foodservice volume sales of yoghurt and sour milk products are expected to decline as hotels, restaurants, schools and other enterprises remain closed.

Danone expected to retain leadership in 2020 due to innovation with “super ingredients”

Danone Portugal is expected to retain its leadership of yoghurt and sour milk products in Portugal in 2020, with a strong presence by offering a wide variety of brands including Activia, Corpos, Oikos, Actimel, Danacol, and Danonino. Although the player relies on its wide variety in terms of flavours and types and continuously launches new varieties to attract Portuguese consumers, the player continued to record sales losses in the line with the category’s overall performance.

Consumers are attracted to natural plain yoghurt with high protein content leading to more launches in 2020

Despite the overall declining demand for yoghurt, plain yoghurt is expected to continue recording strong performance in 2020 in both current value and retail volume terms, with consumers increasingly drawn to this type for its natural image and healthy attributes such as sugar-free or with enriched protein, in addition to its versatility in consumption occasions in terms of cooking or being mixed with other ingredients to offer a nutritious breakfast when mixed with fruit, cereal or seeds.

RECOVERY AND OPPORTUNITIES

Consumers likely to be increasingly attracted to products with functional benefits and high protein contents over the forecast period

Overall, demand for yoghurt has been declining throughout the review period, both in retail volume and current value terms. However, there has been an increase in demand for functional products such as kefir that are perceived as beneficial for digestive health, and for naturally rich in protein products such as skyr in yoghurt.

Organic and lactose-free offerings likely to increase over the forecast period

Over the forecast period, it is likely that brands will continue focusing on exploring and increasing options that contribute to the health and overall well-being of the consumers. Throughout the review period, organic and lactose-free offerings have been gaining prominence over traditional concepts such as light and enriched with probiotics like Bifidus, which despite continuing to be part of the most purchased types of yoghurt is not growing.

Plain yoghurt likely to grow over the forecast period as it offers consumers the possibility to personalise consumption

Over the forecast period, despite going against the growing healthy trend with higher sugar and fact contents than other types of yoghurts, Greek yoghurt is expected to remain strong and growing both in retail volume and current value terms. Furthermore, plain yoghurt will likely have an advantage over flavoured yoghurt during the forecast period, as consumers perceive plain yoghurt to be more natural by not including colourings and artificial flavours.