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.
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
UK FLAVOURED MILK MARKET 2017 & BEYOND<br />
In 2012, value added tax (VAT) was introduced to sports nutrition drinks,<br />
defined by HMRC as drinks that are:<br />
“Marketed as supplying energy to enhance performance,<br />
accelerating recovery after exercise, providing energy, or building<br />
bulk and often contain creatine.”<br />
There is a particular provision, however, made for “milk and preparations and<br />
extracts thereof” and “meal replacement drinks for slimmers or invalids”,<br />
both of which remain exempt.<br />
“<strong>Milk</strong> will remain zero-rated even if promoted as benefiting<br />
consumers taking part in sports activity. Although products such as<br />
meal replacements for dieters may be a similar product to a protein<br />
To view please<br />
purchase full report<br />
supplement used by athletes, they are aimed at different markets.”<br />
HMRC, 28 June 2012.<br />
Therefore, VAT does not apply to flavoured milk, and a market opportunity<br />
persists for products that are marketed as a slimming aid or as a meal<br />
replacement.<br />
6.2.4 Sports nutrition drinks: key facts<br />
Sports nutrition has seen many developments in the last few years. Several<br />
factors have contributed to this growth, which are described in figure 6.10.<br />
Despite these positive growth factors there is evidence that consumers are<br />
confused by the array of sports nutrition products on offer and the health<br />
claims they make. Consumers are often unclear what the products do for them<br />
and what the differences are between them.<br />
67<br />
© 2016 Teepee Limited. All Rights Reserved.
Change language