Yoghurt and Sour Milk Products in Uzbekistan

PROSPECTS

Tradition of sour milk consumption

There is a strong tradition of consuming sour milk products in Uzbekistan in the form of the snack, qurt, dry sour milk seasoned with pepper and salt, as well as a range of drinks including ayran, sour milk diluted with spring water and flavoured with herbs, and kumys, which is made from mare’s milk. Consequently, on the one hand, there is a strong platform for the development of yoghurt and sour milk products in the market founded on consumer familiarity with such products, and, on the other, a potential constraint on the category’s expansion in the form of readily available traditional artisanal products.

Manufacturers target parents

Children, or rather their parents, represent a key target group for packaged yoghurt and sour milk products in Uzbekistan. Manufacturers aim advertising campaigns at parents, particularly younger ones who tend to be more health-conscious than their older counterparts.

Growth drivers

Factors such as rising concerns about the quality and safety of unpackaged products, the development of the supermarket channel, increasing involvement from foreign manufacturers and the modernisation of the local dairy industry will all contribute to the development of packaged yoghurt and sour milk products during the forecast period. The expanding availability of affordable locally produced packaged yoghurt and sour milk products will enable lower-income consumers to enter the category.

COMPETITIVE LANDSCAPE

Bio-Sut extends lead

Bio-Sut QK MChJ extended its lead in yoghurt and sour milk products in 2018. The domestic company consolidated its strong lead in sour milk products through the expansion of both the Bio Kefir and Bifidok brands, which have established high levels of consumer loyalty and trust.

Domestic players make inroads in yoghurt

While sour milk products is dominated by local companies, the yoghurt category is led by foreign multinationals, with French company, Danone, taking top spot, followed by Ehrmann and Campina, based in Germany and the Netherlands, respectively. However, domestic players are expanding their presence in yoghurt, with Bio-Sut pulling up nearly neck-and-neck with Ehrmann and Campina in 2018, while Kamilka Products overtook PepsiCo-owned Russian dairy producer, Wimm-Bill-Dann, to gain fifth spot in the yoghurt category during the year.

Potential for multinational expansion

While local players are gaining ground in yoghurt, the strong growth forecast for flavoured yoghurt over 2018-2023 and the increasingly favourable investment environment could encourage more foreign players to look to develop a presence in the category. Several major multinationals, including Nestlé and Lactalis, have already developed significant positions in other areas of dairy, providing a logistical platform and, to some extent, brand-awareness for expansion into yoghurt.

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