Milk & Dairy Products Market Report
Report description
The milk and dairy market showed its resistance to the tough economic conditions of 2008 and 2009, after growing in value by 12.2% and 6.5%, respectively. However, 2010 saw growth slow to 0.2%, principally because of the increasing number of milk and dairy products sold on promotional offers or at discounted prices in supermarkets. In 2010, the total milk and dairy market was worth £9.18bn, up 27% on 2006 figures.
The milk and dairy market is comprised of five sectors, including liquid milk, cheese, yoghurts, yellow fats (butters and spreads) and cream. Despite a 3.9% decline in value in 2010, liquid milk represented the largest sector of the market throughout the 5-year review period. The second-largest sector, cheese, grew by just 3.6% in 2010. This compares to a growth of 14.1% in 2008 and of 5.5% in 2009. The yoghurts and chilled desserts sector observed the greatest level of growth in 2010, increasing by 6.2% in terms of value.
Recently, high demand in Asia has pushed up the price of wholesale butter. This sector has witnessed a significant increase in the number of products sold via promotional offers or at discounted prices since the recession and, as a result, the increase in wholesale prices has served to squeeze margins. However, global demand for dairy is maintaining high feed prices and this is likely to eventually be passed down to the consumers at retail level. The continued high demand for oil is also pushing up prices, although competition among the multiple retailers is currently keeping prices in check.
Doorstep sales of liquid milk have fallen dramatically since 2006 by 47.9% to 250 million litres. This decline is primarily down to the large falls in prices that liquid milk has undergone in recent years. Despite volume sales of liquid milk increasing by 1.4%, value sales could not be maintained because of the price decreases, after the price of four pints fell by 15.9% in 2010. A similar trend occurred in the cheese sector in 2010, following significant falls in the average price of cheese products over the year. In contrast, aggressive promoting by retailers and an increased interest in healthy eating among consumers has helped to maintain growth in the yoghurt sector in 2010.
The essential nutrients provided by dairy products means that sales have remained comparatively strong throughout the recession. Retailers and brands have also facilitated this by selling products on offer and by keeping prices in check in order to appeal to cash-strapped consumers during the downturn. A return to economic growth should also boost sales of premium dairy products, sales of which faltered somewhat during the recession. However, many consumers have now become accustomed to buying products on offer and, as such, retailers are now facing the prospect of weaning consumers off of such promotions in order to maintain healthy market growth.
Table of contents
Market Definition
REPORT COVERAGE
MARKET SECTORS
MARKET TRENDS
[(c)Milk and Dairy Consumption
[(c)Decline in Organic Dairy Products
[(c)Increased Sales on Promotion
ECONOMIC TRENDS
Population
Gross Domestic Product
Inflation
Unemployment
Household Disposable Income
MARKET POSITION
The UK
[(c)Overseas
Market Size
[(c)THE TOTAL MARKET
BY MARKET SECTOR
Liquid Milk
Cheese
[(c)Yoghurts, Yoghurt Drinks and Chilled Desserts
[(c)Yellow Fats
Cream
[(c)OVERSEAS TRADE
Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Current Issues
NEW PRODUCTS AND BRANDS
Flora Launches Non-Spitting Oil
The Collective Dairy Group
Arla Launches Yoghurt Pouch
Tesco Launches 'Yoo' Yoghurts
CORPORATE ACTIVITY
First Milk Expands
Dairy Crest Creates New Jobs
Quenby Hall Dairy Enters Administration
Dr. Oetker Sells Onken
Milk Link Invests in New Facilities
First Milk Agree Export Deal
New Little Melton Gourmet Yoghurt Factory
Robert Wiseman Sells Clotted Cream Business
Milk Link to Invest in Soft Cheeses
Arla Offers Licence for Lacto-Free Production
TECHNOLOGY
Alternative to Pasteurisation
LEGISLATIVE CHANGES
Food Labelling
Nutrient Profiling Legislation Delayed
EU Commission's 'Milk Package' Proposal
Government Health Responsibility Deal
THE ENVIRONMENT
Dairy UK Sets New Industry Targets
DAIRY CONTRACTS CAMPAIGN
Forecasts
INTRODUCTION
General Economic Forecasts
FORECASTS TO
MARKET GROWTH
FUTURE TRENDS
Healthy Alternatives
Sports Drinks
Increased Prices
Reduced Promotions
Company Profiles
INTRODUCTION
DEFINITIONS
Turnover (Sales)
Pre-Tax Profit
Profit Margin
Average Remuneration
Sales per Employee
FURTHER INFORMATION
ARLA FOODS LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
DAIRY CREST GROUP PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
DANONE LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
THE FIRST MILK CHEESE COMPANY LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
LACTALIS MCLELLAND LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
MEDINA DAIRY LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
MILK LINK PROCESSING LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
MULLER DAIRY (UK) LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Code
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
ROBERT WISEMAN DAIRIES PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
UNILEVER PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
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