Yoghurt and Sour Milk Products in Portugal

PROSPECTS

Lack of innovation and expansive choice negatively impacts drinking yoghurt

Yoghurt continued to record negative growth in both current value and volume terms in 2019 due to saturation, although there was marginal improvement in its performance compared to 2018. The latter trend was linked to ongoing demand for premium products linked to health and wellness trends with organic, plant-based, lactose-free, or probiotic options attracting a small proportion of local consumers.

Consumers attracted to high protein and natural plain yoghurt

Despite the overall declining demand for yoghurt, plain yoghurt continued to record the strongest performance in 2019 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. Innovation related to protein was particularly notable within yoghurt with both skyr in plain yoghurt and kefir witnessing a higher number of launches to satisfy growing demand for high protein products, particularly from those practising sport, as protein consumption is believed to help build and maintain muscle, in addition to supporting energy levels.

Yoghurt produced from goat milk offers another alternative within the category

Yoghurt produced from goat milk is linked to healthier yoghurt alternatives, with the increasing demand for natural yoghurt and innovation, encouraging consumers to search for products that offer some level of differentiation. Goat milk offers an alternative to both cow’s milk and plant-based products, and therefore yoghurt produced from goat or sheep’s milk is creating a dynamic niche within the category.

COMPETITIVE LANDSCAPE

Danone retains leadership with stronger performance in plain yoghurt

Danone Portugal retained its leadership of yoghurt and sour milk products in Portugal in 2019, with a strong presence in the major categories 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 in an attempt to attract Portuguese consumers, the player continued to record sales losses in the line with the category’s overall performance.

Significant presence of private label as consumers look to national production

The significant presence of private label within yoghurt continues to offer strong competition to branded players as many Portuguese consumers have an increasing preference for products of local origin, with retailers able to offer yoghurt made with nationally-produced milk in addition to offering competitive prices. Continente from Sonae Modelo Continente Hipermercados SA continued to gain value share within yoghurt by strengthening its range of lactose-free products to capitalise on the growing demand for healthier products that can address the needs of consumers who suffer from intolerances; its 15 varieties of drinking yoghurt and two limited editions in Lime Lemon and Pineapple Mint are produced from 100% Portuguese milk.

Plant-based yoghurt continues to gain momentum

With increasing demand in Portugal for plant-based drinks under other milk alternatives due to the rising health and wellness trend in the country, alternative options within yoghurt are also being rapidly developed, with consumers now seeing a significant improvement in the offer of plant-based yoghurts in retailers. Alpro entered yoghurt towards the end of the review period with local player Ecotrading SA distributing on behalf of Groupe Danone, to record strong value sales and share gain in 2018 and 2019 with yoghurt based on coconut, oat, and almond milk.

Files are delivered directly into your account within a few minutes of purchase.