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Dairy Market - The Global Trends and Innovation



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In terms of innovation, the dairy sector represents one of the most active areas
of the food and drinks market. Not only are levels of NPD very high but there is
also significant diversity in the types of new products being introduced. In
fact, there is no one single theme that is particularly dominant in influencing
dairy innovation. For example, while the milk and dairy beverage categories are
largely focused on Health and Wellness issues, Convenience and Snacking is a
greater market driver in the cheese sector, while Premiumisation and Indulgence
is perhaps the single most important issue impacting on development of the ice
cream market.




1. INTRODUCTION



1.1 Research Objective

1.2 Definitions and Coverage

1.3 Research Method

1.4 Information Provided

1.5 Supplementary Information



2 TRENDS IN INNOVATION



2.1 Market Drivers by Theme

2.1.1 Health and Wellness

2.1.2 Premiumisation and Indulgence

2.1.3 Convenience and Snacking

2.1.4 Lifestyle and Ethics

2.2 Market Drivers by Sector

2.2.1 Milk

2.2.2 Dairy Beverages

2.2.3 Yoghurt and Desserts

2.2.4 Cheese

2.2.5 Ice Cream



3 SECTOR ANALYSIS - MILK



3.1 Health and Wellness

3.1.1 Functional Milks: Instrumental in milk market growth and NPD

3.1.2 Omega-3 Enriched Milks: Star performers in functional activity

3.1.3 Cholesterol-Lowering Milks: Limited coverage but still of major interest

3.1.4 Vitamin- and Mineral-Enriched Milks: Greater focus on specific health
benefits

3.1.5 Milks for Digestive Health: Still underdeveloped but interest increasing

3.1.6 Highly Digestible/Lactose-Free Milks: Large target audience; growing niche

3.1.7 Weight Control Milks: Reduced-fat joined by specific weight loss products

3.2 Premiumisation and Indulgence

3.2.1 Regional Milks: Limited availability

3.2.2 Quality-Controlled Milks: Extremely niche market

3.3 Convenience and Snacking

3.3.1 Extended Shelf-Life Milks: A recent growth sector in parts of Europe

3.3.2 Pouch-Packed Milks: Dairies test the waters

3.4 Lifestyle and Ethics

3.4.1 Organic Milks: Global growth market

3.5 Future Prospects and Directions

3.5.1 Health and Wellness

3.5.2 Premiumisation and Indulgence

3.5.3 Convenience and Snacking

3.5.4 Lifestyle and Ethics



4 SECTOR ANALYSIS - DAIRY BEVERAGES



4.1 Health and Wellness

4.1.1 Functional Milk Drinks: One of the first stops for functional NPD

4.1.2 Probiotic Milk Drinks: One of the most established functional food markets

4.1.3 Cholesterol-Lowering Milk Drinks: Niche market but several strong brands

4.1.4 Beauty/Anti-Ageing Milk Drinks: The start for cosmetic foods?

4.1.5 Prebiotic Milk Drinks: Underdeveloped but prebiotics have great potential

4.1.6 Other Functional Milk Drinks: New niches developing all the time

4.1.7 Enriched Yoghurt Drinks: Healthy ingredients used to rejuvenate mature
market

4.1.8 Enriched Flavoured Milks: Fortification taking many forms

4.2 Premiumisation and Indulgence

4.2.1 Premium Yoghurt Drinks: Kefir and lassi lead stronger adult focus

4.2.2 Premium Flavoured Milks: Adults are a new target in a traditional kids'
category

4.3 Future Prospects and Directions

4.3.1 Health and Wellness

4.3.2 Premiumisation and Indulgence

4.3.3 Convenience and Snacking



5 YOGHURT AND DESSERTS



5.1 Health and Wellness

5.1.1 Probiotic Yoghurt: Brightest prospects in North America

5.1.2 Fibre-Enriched Yoghurt: Prebiotics and cereals used for added fibre
benefits

5.1.3 Cholesterol-Lowering Yoghurt: Yoghurts less popular than milk drinks

5.1.4 Omega-3-Enriched Yoghurt: Many health issues targeted by the same
ingredient

5.1.5 Bone Health Yoghurt: Ageing population increases interest in
calcium-enriched yoghurt

5.1.6 Beauty/Anti-Ageing Yoghurt: Can ingredient innovation popularise 'beauty
from within'?

5.1.7 Superfoods in Yoghurt: Superfruits already in favour; future potential for
nuts and seeds?

5.1.8 Five-a-Day Yoghurt: Experiments in Five-a-Day yoghurts but is there a
future?

5.1.9 Weight Control Yoghurt: Fat/calorie reduction continues but health focus
has shifted

5.2 Premiumisation and Indulgence

5.2.1 Premium Yoghurt: Premiumisation through both packaging and ingredients

5.2.2 Natural/Greek-Style Yoghurt: Renewed interest thanks to premium image

5.2.3 Super-Premium Desserts: Heights of indulgence offer growth prospects

5.2.4 Co-Branded Desserts: Indulgent feel achieved through links to
confectionery sector

5.3 Convenience and Snacking

5.3.1 Spoon-Free Products: Tubes joined by pouches

5.3.2 Single-Serve Desserts: Sharing desserts no longer just for sharing

5.4 Lifestyle and Ethics

5.4.1 Organic Yoghurt: Sales boom continues; established markets diversify

5.5 Future Prospects and Directions

5.5.1 Health and Wellness

5.5.2 Premiumisation and Indulgence

5.5.3 Convenience and Snacking

5.5.4 Lifestyle and Ethics



6 SECTOR ANALYSIS - CHEESE



6.1 Health and Wellness

6.1.1 Fat-Reduced Cheese: Increasingly combined with other beneficial
ingredients

6.1.2 Vitamin- and Mineral-Enriched Cheese: Calcium and vitamin D lead the way

6.1.3 Omega-3-Enriched Cheese: Children's products dominate as usage spreads

6.1.4 Probiotic Cheese: Kraft boosts the profile and opens door to future
development?

6.1.5 Cholesterol-Lowering Cheese: A limited market

6.2 Premiumisation and Indulgence

6.2.1 Flavoured/Value-Added Cheese: Cheese ripe for flavour additions

6.2.2 Regional/Authentic Cheese: Regional focus narrows to more specific areas

6.2.3 Hot-Eating Cheese: Greater variety in cheese types and formats

6.3 Convenience and Snacking

6.3.1 Children's Cheese Snacks: Focus turning to ingredients rather than formats

6.3.2 Adult Cheese Snacks: Limited penetration to date but interesting NPD

6.3.3 Convenience Cheese: Strong growth and new formats still being explored

6.4 Lifestyle and Ethics

6.4.1 Organic Cheese: Strong growth but some way to go to catch milk penetration

6.5 Future Prospects and Directions

6.5.1 Health and Wellness

6.5.2 Premiumisation and Indulgence

6.5.3 Convenience and Snacking

6.5.4 Lifestyle and Ethics



7 SECTOR ANALYSIS - ICE CREAM



7.1 Health and Wellness

7.1.1 Weight Control Ice Cream: Innovation driven by US market

7.1.2 Frozen Yoghurt: Already healthy image opens doors for wellness innovation

7.1.3 Probiotic Ice Cream: Ice cream suppliers start to test the waters

7.1.4 High-Fruit/Superfruit Ice Cream: Used to add value to already healthy
lines

7.2 Premiumisation and Indulgence

7.2.1 Dark Chocolate Ingredients: Premium ice creams are turning darker

7.2.2 Origin-Specific Ingredients: Premiumisation through specific ingredients

7.2.3 Superfood Ingredients: Adding more value to super-premium products

7.2.4 Super-Super-Premium Ice Cream: A new generation of ultra-premium products?

7.2.5 Co-Branded Ice Cream: Popular strategy to add value and appeal

7.3 Convenience and Snacking

7.3.1 Hand-Held Ice Cream: Strong market, ongoing innovation in formats

7.3.2 Sharing Ice Cream Snacks: Bite-size and mini portions offer new approach

7.4 Lifestyle and Ethics

7.4.1 Organic Ice Cream: Niche market but good prospects

7.4.2 Fairtrade Ice Cream: Of particular interest in the UK

7.5 Future Prospects and Directions

7.5.1 Health and Wellness

7.5.2 Premiumisation and Indulgence

7.5.3 Convenience and Snacking

7.5.4 Lifestyle and Ethics



8 MARKET SIZES AND SEGMENTATION



8.1 Milk

8.2 Yoghurt and Desserts

8.3 Cheese

8.4 Ice Cream



9 NEW PRODUCT DEVELOPMENT



9.1 Milk

9.2 Dairy Beverages

9.3 Yoghurts and Desserts

9.4 Cheese

9.5 Ice Cream



LIST OF TABLES



Table 1 - Currency Conversions

Table 2 - Key Sub-Sectors in Health and Wellness

Table 3 - Key Sub-Sectors in Premiumisation and Indulgence

Table 4 - Key Sub-Sectors in Convenience and Snacking

Table 5 - Key Sub-Sectors in Lifestyle and Ethics

Table 6 - Selected Market Data: Functional Milks

Table 7 - Selected Market Data: Omega-3 Enriched Milks

Table 8 - Selection of Key Brands: Omega-3 Enriched Milks

Table 9 - Selection of Key Brands: Cholesterol-Lowering Milks

Table 10 - Selected Market Data: Vitamin- and Mineral-Enriched Milks

Table 11 - Selection of Key Brands: Vitamin- and Mineral-Enriched Milks

Table 12 - Selected Market Data: Milks for Digestive Health

Table 13 - Selection of Key Brands: Milks for Digestive Health

Table 14 - Selected Market Data: Highly Digestible/Lactose-Free Milks

Table 15 - Selection of Key Brands: Highly Digestible/Lactose-Free Milks

Table 16 - Selected Market Data: Extended Shelf-Life Milks

Table 17 - Selected Market Data: Organic Milks

Table 18 - Selected Market Data: Functional Milk Drinks

Table 19 - Selected Market Data: Probiotic Milk Drinks

Table 20 - Selection of Key Brands: Probiotic Milk Drinks

Table 21 - Selected Market Data: Cholesterol-Lowering Milk Drinks

Table 22 - Selection of Key Brands: Cholesterol-Lowering Milk Drinks

Table 23 - Selected Market Data: Probiotic Yoghurt

Table 24 - Selection of Key Brands: Probiotic Yoghurt

Table 25 - Selected Market Data: Organic Yoghurt

Table 26 Selection of Key Brands: Organic Yoghurt

Table 27 - Selected Market Data: Organic Cheese

Table 28 - Milk1: International Market

Table 29 - Yoghurts and Chilled Desserts1: International Market

Table 30 - Cheese1: International Market

Table 31 - Ice Cream1: International Market

Table 32 - Milk - Selected NPD, 2007-2008

Table 33 - Dairy Beverages - Selected NPD, 2007-2008

Table 34 - Yoghurts and Desserts - Selected NPD, 2007-2008

Table 35 - Cheese - Selected NPD, 2007-2008

Table 36 - Ice Cream - Selected NPD, 2007-2008



LIST OF FIGURES



Fig. 1 - Milk: International Market by Preservation Type

Fig. 2 - Milk: International Market by Type

Fig 3 - Milk: Market Size

Fig. 4 - Yoghurt and Chilled Desserts: International Market by Type

Fig 5 - Yoghurt and Chilled Desserts: Market Size

Fig 6 - Cheese: International Market by Type

Fig 7 - Cheese: Market Size

Fig 8 - Ice Cream: International Market by Type

Fig 9 - Ice Cream: Market Size




To order this report:

Dairy Market - The Global Trends and Innovation



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