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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 />

3.1 Key trends in flavoured milk innovation<br />

Coffee<br />

flavours<br />

Broader<br />

consumer<br />

Broader<br />

consumer<br />

base<br />

base<br />

To view<br />

NPD<br />

please<br />

purchase Trends full report<br />

Functional<br />

drinks<br />

Targeted<br />

packaging<br />

Rapid<br />

growth<br />

Limited<br />

own label<br />

innovation<br />

Figure 3.2: NPD trends in the flavoured milk market<br />

• Brands broadening their target consumer base: Figure 3.1 illustrates the<br />

increasing number of flavoured milk brands, suggesting many companies<br />

are trying to deliver products to multiple customer segments. For example,<br />

Arla has a product in almost every sub-category of flavoured milk,<br />

including: traditional and functional flavoured milks, coffee, lactose-free<br />

and sugar-reduced variants.<br />

• Coffee flavours are on the rise: Coffee is an increasingly popular flavour.<br />

Starbucks by Arla, Caffé Latte by Emmi and even dairy-alternative milk<br />

producers like Blue Diamond, Alpro and VitaCoco, have developed coffee<br />

flavoured propositions.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: 2016<br />

to 2017<br />

22

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