Dairy - yoghurts 2023: Brands turn to functional yoghurt lines

Yoghurts enjoy a coveted position as a healthy, high-protein snack. They fit into different lifestyles and are “widely consumed in diet plans”, resulting in “high demand”. That’s according to Aastha Tripathi, senior analytics executive at NIQ.

So, why the 5.5% decline in volumes? That, she explains, is down to brands. “Brands are struggling with distribution losses in the growing category and lower average weight of purchase.” They’ve sold 27.6 million fewer kilos in total. Big names like Müller Corner and Yeo Valley have suffered double-digit declines in volume.

Private label has taken up some of the slack, growing volumes 4.6%. It’s no coincidence it is 35.3% cheaper on average than brands. “Own label has pushed lower price points to help accelerate the category growth,” confirms Tripathi.

Big supermarket yoghurt brands suffer declines 

To maintain that category growth, however, she says brands must also show they can offer value. “Brands have larger share and dominate the yoghurt space. If they are unable to offer consumers value for money, then the entire category will likely continue to struggle.”

Yoghurt’s big names are cognisant of the situation. Take Danone duo Activia and Actimel, which have suffered respective volume declines of 9.4% and 11.2%. To add value, they unveiled a number of health-focused lines this year – including Activia Fibre and Actimel Plus for immune support. In September, Danone also launched high-protein brand GetPro.

There remain “clear jobs to be done in both re-engaging consumers in existing functional health needs – such as gut health and immunity – as well as developing new emerging areas of functional health, such as high protein”, admits Danone UK&I head of category development George Bates.

Yoghurt gut health brand’s success

Arla – the only brand in the top 10 to see volume growth, at 7.7% – has also pushed functional health. It has partnered with retailers to launch branded protein-specific bays for easier navigation.

“Our products continue to align to key macro category drivers of health,” says Catriona Mantle, head of milk, organic & yoghurt at Arla Foods. “Our Arla Protein and Skyr ranges perfectly align to benefit-led health, as shoppers continue to seek healthy products that ‘give them something good’.”

It’s certainly onto something if the performance of health-led lines is anything to go by. Gut health brand Biotiful is up 15.7% in volume. Protein brands Lindahls and Nomadic have shifted an extra 1.3 million kilos.

Paul Wiseman, marketing director at Lactalis Nestlé, says the taste and health cues of Lindahls have helped it navigate “the increasingly competitive landscape”.