Innovation key to unlock new potential in Europe's dairy markets
Although the main dairy markets are mature, innovation and structural change are placing the European industry on a more secure footing, according to the latest report on the West Europe Dairy Market from leading food and drink consultancy Zenith International. Provisional figures for 2002 indicate that consumption of:
- butter edged up 0.1% to 1.75 million tonnes
- cheese advanced by 2.6% to 7.18 million tonnes
- drinking milk declined by 1.8% to 33.3 million tonnes.
"New hope is being fostered by new segments – such as organics and probiotics," commented Zenith Research Director Gary Roethenbaugh. “The key word for future growth is innovation. The challenge facing the European dairy industry is to continue investing in research, developing innovative products that meet consumer needs and backing them with sustained marketing activity."
Germany is Europe’s largest milk producer, with output of 28.3 million tonnes in 2001. France and the United Kingdom were the only two other countries producing more than 10% of the 127.8 million tonne West European total. The top company by dairy sales was Nestlé at over €15,000 million in 2001. Four other businesses had dairy sales above €5,000 million - Danone, Parmalat, Lactalis and Unilever. In terms of milk processed, Arla led the 2001 rankings, followed by three more groups processing in excess of 5 million tonnes - Lactalis, Campina and Friesland Coberco.
Zenith forecasts to 2006 anticipate that butter consumption will remain static, while cheese consumption rises by 1.5% a year and drinking milk consumption picks up again in 2003 before resuming its slow long term decline.
"The euro and EU enlargement will undoubtedly lead to further industry consolidation," added Gary Roethenbaugh. "Economies of scale are fundamentally important in such a price sensitive and highly competitive market. Companies must concentrate on value added products to improve profitability. Functional, ecologically friendly and consumption occasion products along with increased attention to product quality and safety seem the way forward," he concluded.
The 2002 Zenith West Europe Dairy Market Report contains 230 pages with 20 market overview tables and charts, 17 country profiles, top 50 company profiles and a full market analysis. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
Notes for Editors
For further information, please contact:
Gary Roethenbaugh or Nicky Casebow, Zenith International Ltd
7 Kingsmead Square - Bath BA1 2AB - United Kingdom
t +44 (0)1225 327900 - f +44 (0)1225 327901
zenithinternational.com
- butter edged up 0.1% to 1.75 million tonnes
- cheese advanced by 2.6% to 7.18 million tonnes
- drinking milk declined by 1.8% to 33.3 million tonnes.
"New hope is being fostered by new segments – such as organics and probiotics," commented Zenith Research Director Gary Roethenbaugh. “The key word for future growth is innovation. The challenge facing the European dairy industry is to continue investing in research, developing innovative products that meet consumer needs and backing them with sustained marketing activity."
Germany is Europe’s largest milk producer, with output of 28.3 million tonnes in 2001. France and the United Kingdom were the only two other countries producing more than 10% of the 127.8 million tonne West European total. The top company by dairy sales was Nestlé at over €15,000 million in 2001. Four other businesses had dairy sales above €5,000 million - Danone, Parmalat, Lactalis and Unilever. In terms of milk processed, Arla led the 2001 rankings, followed by three more groups processing in excess of 5 million tonnes - Lactalis, Campina and Friesland Coberco.
Zenith forecasts to 2006 anticipate that butter consumption will remain static, while cheese consumption rises by 1.5% a year and drinking milk consumption picks up again in 2003 before resuming its slow long term decline.
"The euro and EU enlargement will undoubtedly lead to further industry consolidation," added Gary Roethenbaugh. "Economies of scale are fundamentally important in such a price sensitive and highly competitive market. Companies must concentrate on value added products to improve profitability. Functional, ecologically friendly and consumption occasion products along with increased attention to product quality and safety seem the way forward," he concluded.
The 2002 Zenith West Europe Dairy Market Report contains 230 pages with 20 market overview tables and charts, 17 country profiles, top 50 company profiles and a full market analysis. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
Notes for Editors
For further information, please contact:
Gary Roethenbaugh or Nicky Casebow, Zenith International Ltd
7 Kingsmead Square - Bath BA1 2AB - United Kingdom
t +44 (0)1225 327900 - f +44 (0)1225 327901
zenithinternational.com