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Dairy Market - Is Functional Still a Driving Force? - Ireland - November 2010
Dairy Market - Is Functional Still a Driving Force? - Ireland - November 2010

The Irish dairy market has proved more robust than other food categories in the recession, growing by 4% in value sales over the last five years to reach an estimated €1.4 billion in 2010, despite the impact of heavy promotional activity and trading down over 2009 into 2010.

Health is both the biggest asset and liability for the Irish dairy industry, with low-fat and functional dairy products gaining market share, but negative press on saturated fats deterring some consumers.

The Irish dairy market has proved more robust than other food categories in the recession, growing by 4% in value sales over the last five years to reach an estimated €1.4 billion in 2010, despite the impact of heavy promotional activity and trading down over 2009 into 2010.

Health is both the biggest asset and liability for the Irish dairy industry, with low-fat and functional dairy products gaining market share, but negative press on saturated fats deterring some consumers.

While fluctuating global milk prices are an ongoing concern, the outlook for the Irish dairy market is broadly positive, with major investment in both generic marketing and company infrastructure boosting prospects, while the cheese and yogurt sub-categories are ripe for expansion.


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Sales of yogurt and chilled desserts have been adversely affected by Europe’s economic uncertainty, with consumer spending habits increasingly dictated by price. Thanks to its larger population size and high take-up of yogurt, Germany is the leading market in terms of volume, but the UK takes the top position in the value sales of desserts.

Recent new product activity has concentrated on additive- ...