Yogurt
Global Market Analysis
March 23, 2012
North America,
Latin America,
Europe, Asia
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Yogurt Market Scope

The yogurt market includes spoonable yogurt, drinkable yogurt,
Greek, and probiotic varieties
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Global Yogurt Continues to Grow
US$ Billion
Global Retail Sales of Yogurt 2011-2016
4%
4.2%
*Year on year growth
4.4%
4.1%
4%
2011-16 absolute growth
***4.1% and $16 Billion***
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Top Yogurt Markets

Largest Consuming Yogurt Countries
Rank
Country
2011-16 CAGR % Value
2011 Value ($Millions)
1
Japan
2.0%
$
7,890.4
2
USA
2.3%
$
7,605.7
3
China
10.2%
$
5,551.1
4
Brazil
10.5%
$
5,393.3
5
Germany
1.3%
$
3,517.0
 Fastest Growing Yogurt Countries
Rank
Country
2011-16 CAGR % Value
1
India
20.1%
$
781.6
2
Egypt
13.7%
$
248.6
3
Brazil
10.5%
$
3,505.0
4
China
10.2%
$
3,473.5
5
Colombia
8.7%
$
268.0
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2011-16 Absolute ($Millions)
Global Trends
 Eco-friendly packaging has become a standard in yogurt packaging.
o
16 % of launches featured the environmentally friendly claim
 Market witnessed a shift from traditional, spoonable products towards yogurt drinks
 On-the-go marketability claims were pushed, especially for school age children, as
a benefit of drinkable yogurt
 There is a heightened demand for:
o
low/no/reduced fat, low/no/reduced sugar, organic, no additives/preservatives, all natural, and GMO
free products
 U.S. consumers are willing to pay a premium price of ~$3.52 per 16 oz package on
average for Greek yogurt
o
It is a filling, high in protein, low fat and low carbohydrate food
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Yogurt-NA

Industry Background-NA
o
$9.9+ billion industry
• 2011-16 CAGR % Value growth: 9.9%
o
o

Greek yogurt share has grown to 13.2%
Over 50% of the market is dominated
by Danone, Groupe and Sodiaal SA
Major Marketers (Brands)
o
o
o
o
Danone, Groupe (Danone, Activia)
Sodiaal SA (Yoplait)
Private Label(Private Label)
Agro Farma Inc (Chobani)
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Company $ Share
Yogurt-NA

Packaging
o
Plastic cups sealed with an aluminum foil top is typical
o
o
o
Set type packaging is when fruit is in the bottom of the cup and
yogurt is on top
Swiss type packaging is when fruit
and yogurt are blended together
FDA regulates the label
• must indicate whether the yogurt has
been ‘heat-treated’ or ‘active cultures’
o
Drinkable styles are found in bottles
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Yogurt-NA

Packaging-NA
Danone, Groupe
Sodiaal SA
Tube
Flexible packaging
Unknown company
$7.55 (32x2. 25 oz)
Plastic Bottle
Foil Seal closure
Graham Packaging
$4.68 (12x3 10 fl oz)
Plastic Tub
Foil seal closure
Unknown company
$0.98 (6oz)
Plastic Tub
multi laminate seal closure
Spartech Packaging
$7.41 (16x3. 53 oz)
Private Label
Agro Farma Inc
Plastic Tub
Foil seal closure
Unknown packaging
company
$0.45 (6oz)
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Plastic Tub
Foil seal closure
Unknown company
(6oz)
Trends & Considerations-NA
 Trends & Considerations
o
o
o
Yogurt and sour milk drinks increased by 9% in current value
terms to reach US$8.0 billion in 2011
Americans are turning to yogurt as a nutritious breakfast or tasty
snack
Spoonable yogurt will continue to outperform drinking yogurt
• drinking yogurt sales are expected to decline by 15% in 2011
• Difficult to compete with fresh smoothies from places like Jamba Juice, etc.
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Trends & Considerations-NA
 Trends & Considerations
o
Pro/pre biotic spoonable yogurt is expected to see the fastest
growth in 2011
• 25% current value increase
o
o
Unit prices of yogurt expected to increase slightly in 2011 due to
an increase in milk prices
Greek yogurt is gaining numerous fans (it is especially popular
with health conscious women)
• Seen as the best yogurt for weight loss
• Appeals to consumers who enjoy thick, creamy texture
• Being used as a substitute for sour cream and mayonnaise in cooking
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Yogurt-LA

Industry Background-LA
o
$10.2US+ billion industry
• 2011-16 CAGR % Value growth: 15.8%
o

Danone #1 Market share at 32.3%
Major Marketers-LA
o
o
o
o
Danone (Danone, Activia)
Nestle SA (Nestle, Chamyto)
Yakult Honsha (Yakult)
Alpina Productos (Alpina)
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Company $ Share
Yogurt- LA

Packaging
o
Yogurt is typically found in plastic cups and sealed with an
aluminum foil top
o
Drinkable yogurt styles found in bottle
o
Also available in Flexible Packages
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Baby Formula-Brazil

Packaging
Danone
Nestle
Plastic Tub
Foil seal closure
$0.58 (3.88oz)
Plastic Bottle
Foil seal closure
$0.44 (8.65oz)
Brf Brasil Foods
Plastic Bottle
Plastic cap closure
$3.30 (30 oz)
Plastic Bottle
Plastic cap closure
$1.13 (9.47 oz)
Plastic Tub
Foil seal closure
$1.60 (5.3 oz)
Alpina Productos
Plastic Tub
$0.54 (5.12 oz)
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Plastic Tub
$0.94 (6.18 oz)
13
Trends & Considerations-LA
 Trends & Considerations
o
o
Vanilla yogurt is a natural accompaniment to fruit dishes
served in the morning
Drinking yogurt posted stronger retail volume than
spoonable in 2011
• accounts for 65% of total value sales
• consumers seem to prefer liquid versions
o
Functional drinking yogurt is seen as healthy and
convenient
• Consumers in developing urban areas have increasingly busier lifestyles
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14
Yogurt – Europe

Industry Background – Europe
o
$28.6 billion industry
• CAGR % value growth for 201116
– EE: 9.8%
– WE: 3.9%
o

Largest markets: Germany,
France, UK, Spain, and Italy
Major Marketers (Brands)
o
o
o
o
Danone (Danone, Activia,
Nutriday)
Private Label (Private Label)
Molkerei Alois Muller (Muller,
Froop)
Sodiaal SA (Yoplait)
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Company $ Share
Yogurt – Europe
 Packaging
o
o
o
Yogurt found in plastic cups and
sealed with an aluminum foil top
Drinkable yogurt styles found in
bottle
Occasionally found in glass jars
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Yogurt- Europe

Packaging – Europe
Danone
Plastic Tub
Foil seal closure
$1.65 (4x4 41 oz)
Sodiaal
Plastic Tub
Multi laminate seal closure
$3.49 (4x4 24 oz)
Plastic Tub
Paper seal closure
$2.48 (8X4 41 oz)
Private Label
Molkerei Alois Muller
Plastic Tub
Foil seal closure
w/ plastic
overcap
$0.52 (17.65 oz)
Plastic Tub
Foil seal closure
Optipack
Packaging
$0.66 (5.3 oz)
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Plastic Bottle
Foil seal closure
$2.40 (6x3 53 oz)
Trends & Considerations-Europe
 Trends & Considerations
o
Recession and current economy has reduced consumer
purchasing power and confidence
• consumers moving away from branded to private label products.
o
o
Fruited spoonable yogurt saw the strongest performance
in value and volume growth in 2011
Drinkable yogurt saw record sales in 2011
• The popularity varies by country (less popular in France)
Source: Euromonitor 2010
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Trends & Considerations
 Trends & Considerations
o
o
Increased consumption of products designed for on-thego
Danone designed first bio-mass based plastic container
for Activia in Germany
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Yogurt – Asia

Industry Background – Asia
o
o

$17.7 billion industry
• 2011-16 CAGR % value growth:
9.6%
Private label only accounts for
0.7% of market
Major Marketers (Brands)
o
o
o
o
Yakult Honsha (Yakult)
Meiji Holdings (Bulgaria, LG21)
Morinaga & Co (Morinaga)
China Mengniu Dairy (Mengniu)
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Company $ Share
52.1%
Yogurt- Asia

Packaging
o
More variety in drinkable yogurt
packages
•
Found in plastic bottles, pouches, and
cardboard cartons
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Yogurt- Asia

Packaging
Meiji Holdings
Yakult Honsha
Plastic Tub
$1.93 (4x2 82 oz)
Plastic Lined Board
Carton
$3.34 (3x3 38 oz)
China Mengniu Dairy
Morinaga & Co
Pouch
$1.79 4.59 0z
Plastic Tub
$1.22 (4.24
oz)
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Plastic Bottle
$0.58 (11.83 oz)
Trends & Considerations-Asia
 Trends & Considerations
o
Yogurt tends to be less sweet and have more of a ‘dairy’ taste
o
Tends to be more liquid than solid
o
Asia presents huge opportunity for marketing yogurt as a
healthy snack option
•
o
Rising incidence of life-style related health concerns such as diabetes and
obesity
China represents the fastest growing regional market for yogurt,
in terms of consumption (value and volume)
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Overall Trends and Considerations
 Trends and Considerations
o
o
o
o
o
Marketers differentiate by focusing on health benefits, branding, and
incorporation of ingredients (namely fruit)
Households with children constitute the segment with potential growth
opportunities
Market is shifting in some countries from traditional, spoonable yogurts
to drinkable varieties
Probiotics total sales expected to grow with consumer awareness of
health benefits
Popularity of private label yogurts varies by country
Source: Euromonitor 2010
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Packaging Considerations and Opportunities
 Weaknesses of current packaging include:
o
o
o
Must remember to pack a spoon when consuming traditional yogurt
on-the-go
The glass jars (sometimes found in Europe) are expensive, dangerous,
and heavy
Yogurts covered by foil only are a risk
• Possibility of tampering with the seal and damaging the product
o
Yogurt containers are labeled #5, but most curbside residential
recycling programs only accept #1 & #2
• Stoneyfield Farms will take containers back and recycle for customers
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Packaging Considerations and Opportunities
 Opportunities to improve packaging include:
o
Green packaging: Biopackaging materials (ie polylactate) are gaining
popularity over PP and thermoformed cups
• Polylactates offer advantages in preventing color changes, preventing formation of
hydroperoxides, and decrease in beta-carotene and riboflavin concentrations in the
final product
o
o
Emerging technologies such as high hydrostatic pressure (HHP)
reduces fermentation time of yogurt milk
Hinged lids for larger containers would add convenience
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Packaging Considerations and Opportunities
 Opportunities to improve packaging
include:
o
Innovative design changes that
include spoon with the container
• Similar to individualized ice cream
containers
o
o
Pouches offer excellent visual
appeal, portability, and are
sustainable
BAP technology to ensure freshness
of the product and create an easier
opening experience
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Yogurt – Aptar Developments

Aptar Developments
o Features/Benefits
•
Convenient
• Attached spoon
•
Hinged Closure
• Prevents missing caps
110mm Dispensing
Scoop n’ Lid
110mm Non-Dispensing
Scoop n’ Lid
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28
Yogurt – Aptar Developments
 Aptar Developments
o Features/Benefits
• Differentiating design
• Dispensing convenience
• Accurate product placement
and cutoff
Valve captured between
fitment and snaptop
overcap
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Yogurt – Aptar Developments
 Aptar Developments
o Features/Benefits
Non-Choke
Elliptical spout
SimpliSqueeze
• Differentiating
design
• Dispensing
convenience
• Accurate product
placement and
cutoff
• Child-safe
• Larger branding
space
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Yogurt- Aptar Dairy Developments
2035 Frost Snap Top
SimpliSqueeze
2234 Snap Top
SimpliSqueeze
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Yogurt- Aptar Dairy Developments
Custom Snap Top
Custom Widemouth
Closure
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2-1/8’’ Snap Top
38-400
SimpliSqueeze
Custom Snap
Top
SimpliSqueeze
Custom Snap Top
SimpliSqueeze
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Custom Snap
Top
SimpliSqueeze
Yogurt- Aptar Dairy Developments
54 mm Snap Top
33-400
SimpliSqueeze
Ribbed Pour
Spout
38-400
2-1/8’’ Snap Top
33-400 Frost
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Directional Pour
Spout
33-400
Yogurt- Aptar Dairy Developments
Custom 44 mm Snap Top
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