Yoghurt and Sour Milk Products in Uzbekistan

PROSPECTS

Traditional sour milk consumption offers both growth prospects and limitations

There is a strong tradition of consuming sour milk products in Uzbekistan in the form of the snack, qurt, a 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.

Rising demand among health conscious parents boosting sales

Children and their parents represent key target groups 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.

Expansion of distribution key to boosting sales

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

Local players continue to benefit from wide distribution and accessible prices

Domestic companies such as Bio-Sut, Kamilka Products and Siyob Shavkat orzu are clear leaders in yoghurt and sour milk products in Uzbekistan. The products of these companies are available throughout the country, as well as in most dairy categories, thus helping to raise consumer brand awareness.

Local producers gaining sales share from multinationals within yoghurt

While sour milk products is dominated by local companies, multinationals are more strongly positioned in yoghurt, with German-based Ehrmann leading sales, followed by French company Danone and Dutch producer Campina. However, domestic players are expanding their presence in yoghurt, with Bio-Sut and Kamilka Products gaining sales share throughout the review period and PepsiCo-owned Russian dairy producer Wimm-Bill-Dann falling to seventh position.

Potential for multinational expansion, although import controls may pose challenge

While local players are gaining ground in yoghurt, the strong growth forecast for flavoured yoghurt over the forecast period 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 dairy areas, 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.