Flavoured_Milk_Free
The backdrop to the UK flavoured milk market is one of relentless change. The removal of the EU milk quotas, the transition by emerging economies to a Western-style diet, the upcoming introduction of the ‘sugar tax’ and the booming sports nutrition industry are all aspects of change that create both challenges and opportunities for the UK flavoured milk market. HRA Food and Drink has developed this report as a map to guide industry stakeholders. Although volume growth in 2014 was slightly lower than in previous years, the flavoured milk market still has plenty of room for product innovation in the future.
The backdrop to the UK flavoured milk market is one of relentless change. The removal of the EU milk quotas, the transition by emerging economies to a Western-style diet, the upcoming introduction of the ‘sugar tax’ and the booming sports nutrition industry are all aspects of change that create both challenges and opportunities for the UK flavoured milk market.
HRA Food and Drink has developed this report as a map to guide industry stakeholders. Although volume growth in 2014 was slightly lower than in previous years, the flavoured milk market still has plenty of room for product innovation in the future.
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UK FLAVOURED MILK MARKET 2017 & BEYOND<br />
8.9 Will the sugar-tax affect flavoured milk?<br />
In a nutshell, no. The upcoming sugar tax is designed to increase prices on soft drinks, but<br />
excludes fruit juices and milk-based products.<br />
Tam Fry of the National Health Obesity forum provides a helpful clarification. Speaking in<br />
January 2016 he said:<br />
“We are talking about a tax on sugary drinks which are without nutrition<br />
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and injurious. It would be wrong to tax sugar in foodstuffs as that would<br />
hit the poor hardest”.<br />
However, this is not to say that the tax will affect the flavoured milk market. On the one<br />
hand, it may be favourable for the industry, as consumers substitute sugar laden soft drinks<br />
with cheaper, milk-based alternative.<br />
The 2018 sugar tax could represent a larger market signal, with a general consumer trend<br />
towards healthy eating and weight consciousness. There could be opportunities for the<br />
flavoured milk industry to tap into this trend by developing lower sugar products.<br />
8.9.1 Alternative sweeteners<br />
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Figure 8.18: Comparison of non-sugar based sweeteners that could be utilised by the<br />
flavoured milk industry.<br />
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