Yoghurt and Sour Milk Products in Singapore

PROSPECTS

Health-conscious consumers appreciate drinking yoghurt and high protein Greek yoghurt

Yoghurt continued to record stable but undynamic retail volume growth in 2019, driven by the performance of the largest category of drinking yoghurt, with stagnation for flavoured and plain yoghurt. However, despite the health and wellness aspect of certain types of yoghurt, upcoming legislation on a sugar tax in Singapore could pose a problem for producers of drinking yoghurt, which requires a certain level of sugar to sustain the lactobacillus probiotics that the product is known for.

Plant-based yoghurt to remain niche despite growing vegetarian trend

As witnessed in other dairy-based categories, demand for plant-based yoghurt remains a niche in Singapore. Despite rising health awareness regarding lactose-laden dairy products, many local consumers were not ready to accept these premium yoghurts with much higher price points compared to dairy yoghurt and struggled to understand their additional value.

Internet retailing gains ground by offering convenience to consumers

Supermarkets remained the dominant distribution channel for yoghurt in Singapore in 2019, gaining further value share from hypermarkets. However, the much smaller channel of internet retailing continued to slowly gain ground and recorded impressive double-digit current value growth in 2019.

COMPETITIVE LANDSCAPE

Yakult retains dominance of drinking yoghurt despite strong competition from smaller brands

Yakult (S) Pte Ltd retained its dominance of drinking yoghurt in Singapore in 2019. Yakult is a well-established brand in Singapore, benefiting from high consumer awareness and loyalty.

Yoyi C records second year of impressive growth since entry to drinking yoghurt

Chinese brand Yoyi C, which entered drinking yoghurt in 2017, has rapidly gained a loyal following due to its lower price point. Supported by China Mengniu Dairy Co Ltd, it has rolled out a number of product lines to effectively compete with established brands such as Yakult, Nestlé Bliss and Magnolia.

Shelf stable brands must allay consumers’ concerns over unhealthy image

Other than Yoyi C’s Just Pure range of shelf stable yoghurt which tends to be placed next to its chilled yoghurt range, Dutch Mill was the most notable brand that only requires ambient shelving with the majority of yoghurt requiring refrigeration. Yoyi C’s strategy of placing both its fresh and shelf stable yoghurts next to each other in the chilled section is to counter negative consumer perceptions that shelf stable yoghurt is of inferior quality to the fresh format.

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