Functional dairy drinks grow by over 10% a year
The combined markets of West Europe, United States and Japan saw functional dairy drinks consumption rise 12% to 999 million litres in 2006, according to the 2007 Functional Dairy Drinks report from leading food and drink consultancy Zenith International. This equates to a retail value of 3,434 million euros – positive news for the dairy industry as it comes under increasing cost pressures.
"The early influence of Japan's Yakult, the daily dose probiotic yogurt shot, is undoubtedly one of the main reasons why the functional dairy drinks market has been able to develop so successfully," commented Zenith Market Analyst and functionaldrinks newsletter Editor Jenny Foulds. "Technology advances, scientific research and product innovation are now enabling manufacturers to introduce new health positionings based on a range of emerging ingredients."
Zenith's 2007 Functional Dairy Drinks report finds that:
- West Europe is by far the largest of the three markets, seeing strong double figure growth in 2006.
- The US is experiencing year on year growth of around 50%, albeit from a low base.
- Japan's volume share is slowly being eroded.
- Traditional probiotic yogurt shots are now declining in some markets.
- Consumer confusion over health claims and an overwhelming variety is also hampering growth.
- Difficulties are being offset by dairy-based opportunities in other functional beverage categories, such as sports drinks, energy drinks and cosmeceuticals.
- Challenges to overcome include: increasingly strict regulation of health claims; delivering clear messages to consumers; and satisfying consumer interest in new niches.
"As health conscious consumers seek more individual solutions and choices, the uppermost challenge for those entering the functional dairy drinks category is how to respond to this ever changing agenda. Product positioning will become increasingly important, as will appealing to principles such as convenience, provenance and health," added Jenny Foulds. "Further investment in new functional ingredients and flavours, supported by a growing body of evidence in favour of dairy's wide ranging benefits, will ensure continued potential for future growth."
Sales of functional dairy drinks across the markets of West Europe, United States and Japan are projected to reach 1,600 million litres and 6,250 million euros in value by 2011.
The 2007 Zenith Report on Functional Dairy Drinks contains 87 pages including tables and charts, brand and company profiles, and a full market commentary. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
For further information, please contact:
Gary Roethenbaugh or Jenny Foulds, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900, f +44 (0)1225 327901
zenithinternational.com