Yoghurt and Sour Milk Products in Uzbekistan

2021 DEVELOPMENTS

Yoghurt remains the most profitable product area of dairy thanks to the nation’s sweet tooth

When it comes to their taste in yoghurt, consumers in Uzbekistan clearly prefer exotic and very sweet flavours, as yoghurt is generally perceived as a dessert rather than part of their everyday meals. Traditional sour milk products from Uzbekistan such as kefir, qatiq and ayran are more likely to be used as a plain, flavourless option in cooking or as a savoury snack.

Yoghurt and sour milk products will continue to be the most competitive product area in dairy as local production continues to grow

Yoghurt and sour milk products is expected to have the most competition of all product areas of dairy in Uzbekistan in 2021. This competition is fuelled by the expansion and development of local production as an increasing number of small local companies emerge in competition with imported products from multinational companies.

Bio-Sut QK continues to increase value share through low prices and good marketing

Bio-Sut is expected to, once again, increase its value share in yoghurt and sour milk products in 2021. Bio-Sut’s success can be linked to a series of successful promotions and attractive prices.

PROSPECTS AND OPPORTUNITIES

Improved distribution and longer shelf life suggests potential for growth in yoghurt

Traditionally in Uzbekistan each region has relied upon its own dairy producers due to the difficulty of logistics. This has meant that local artisanal products, especially where local production in a region may be limited to smaller companies, have largely remained particularly popular in yoghurt and sour milk products.

Parents and young people lead the way in health trend

Although healthy eating trends have thus far been relatively unpopular in Uzbekistan, as more young people gain access to the internet and travel, they are likely to develop a growing interest in global health trends. Parents, in particular, are expected to become increasingly aware of the nutritional quality of particular types of food, and this will likely influence their purchases in the future.

Improvements in distribution and the success of flavoured yoghurt could provide potential for multinational expansion

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 product area. 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.