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 />
This desire to support UK dairy farmers is closely linked to the growing trend for buying<br />
locally produced products. The driving factors behind local sourcing are often<br />
environmental and ethical considerations. These include a desire for sustainable sourcing,<br />
reduced carbon emissions, supporting local communities, shorter supply chains with<br />
greater integrity and higher animal welfare standards.<br />
There is an opportunity for flavoured milk brands to capitalise on their<br />
British milk provenance. Daioni, with its Welsh organic milk, is a brand<br />
which does this effectively and is able to charge a premium for their<br />
provenance positioning. However, this opportunity is limited mainly to<br />
fresh products due to the lack of UK contract manufacturing capability<br />
for UHT milk bottled drinks.<br />
In November 2015, Ash Amirahmadi, vice president of milk and member services at Arla<br />
UK, claimed that the brand is set to return £5m back to farmers within its first year of sales.<br />
By February 2016, Morrisons claimed that the brand was surpassing its target sales. This<br />
demonstrates a clear willingness from consumers to voluntarily pay more for ethical<br />
reasons. There is little reason this could not also apply to flavoured milk. However, if milk<br />
prices start to rise again this model may prove redundant. Furthermore, it has faced<br />
criticism from some saying it is the retailers and processors responsibility to ensure their<br />
farmers are paid fairly.<br />
8.15 Social: ageing population<br />
With healthcare advances and consequent improvements in mortality rates, the UK<br />
population is ageing and is expected to continue to do so. Currently, one in every six adults<br />
in the UK is 65 or over, which is expected to rise one in four by 2050.<br />
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