• Client log in
  •   All Countries  
      All Countries  
    Everything in
      All Countries  
      UK  
      US  
      France  
      Germany  
      Italy  
      Ireland  
      Spain  
      China  
      Other  
    Unlocked in
      All Countries  
      UK  
      US  
      France  
      Germany  
      Italy  
      Ireland  
      Spain  
      China  
      Other  
  • | Contact Us   
Contents
Report homepage
Contents
Issues in the Market
Future Opportunities
Market in Brief
Internal Market Environment
Broader Market Environment
Competitive Context
Strengths and Weaknesses
Who’s Innovating?
Market Size and Forecast
Market Segmentation
Companies and Products
The Consumer – Consumption
The Consumer – Attitudes towards Dairy
Consumer Target Groups
Appendix – The Consumer – Attitudes
Appendix – The Consumer – Target Groups
download as rtf | download as zip | print
Dairy Market - Is Functional Still a Driving Force? - Ireland - November 2010
Table of Contents

Issues in the Market

Future Opportunities

Cheese as the snack of choice

Putting the fun back into children’s dairy products

Market in Brief

Recession dampens value returns in RoI

Yogurt market offers growth potential

Health is the key driver across dairy

Origin comes to the fore

Investment set to bolster Irish dairy prospects

Consumer opportunities

Internal Market Environment

Key points

Research continues to back up dairy’s health benefits

Figure 1: Nutritional benefits of milk*, 2010
Food agency urges consumers to opt for low-fat dairy products
Nutritional labelling highlights fat content
Recession and regulations hit functional dairy category
Figure 2: Summary of dairy claims eligible for approval under new EC health claims regulations, 2010
Dairy proves more resilient than other organic categories
Figure 3: Agreement with the statement ‘It’s worth paying more for organic food’, NI and RoI, 2004-09
Provenance plays a major role in Irish dairy market
Figure 4: Agreement with the statement ‘I buy goods produced by my own country whenever I can’, RoI and NI, 2004-09
Irish dairy industry tackles environmental concerns
Figure 5: Agreement with the statement ‘I would be prepared to pay more environmentally friendly products’, RoI and NI, 2004-09

Marketing support

National Dairy Council (NDC) of Ireland
Dairy Council of Northern Ireland
Milk in Action joint campaign

Broader Market Environment

Key points

Recession: A mixed bag for the dairy sector

Figure 6: Economic outlook, RoI and NI, 2008-10

Irish dairy sector confidence improves

Farmgate milk prices improve
Price crisis of 2009 highlights impact of CAP reform

Producers feel the squeeze as supermarkets move in

Boost for school milk programmes

Figure 7: Technical changes to the standards for school foods, UK, 2008

An ageing population presents challenges for dairy industry

Figure 8: Population demographics, by age, RoI, 2006-41
Figure 9: Population demographics, by age, NI, 2008-58
Elevating dairy products among teenagers
Growth in middle and third age consumers supports functional category

Competitive Context

Key points

Will marketing push reverse downward trend for milk?

Growth in allergies boosts sales of cows’ milk alternatives
Origin becomes a competitive battleground

Strengths and Weaknesses

Strengths

Weaknesses

Who’s Innovating?

Key points

Yogurt and hard cheese drive NPD

Figure 10: Number of new dairy launches, by sub-categories, IoI, 2010*
New products lead launch types
Figure 11: Number of new launches, by launch type, IoI, 2010*
Health-related claims dominate dairy NPD
Figure 12: Number of new launches, by top ten claims, IoI, 2007-09
Manufacturers invest in healthier lines
Organic activity holds strong
Cows’ milk alternatives address growing allergy problem
Functional straddles many health claim categories
Kids’ yogurts are stripped of additives
Flavoured milk sector targets older drinkers
Provenance drives premium dairy category
Convenience also a key claim

Market Size and Forecast

Key points

Irish dairy market survives a turbulent 2009

Figure 13: Estimated retail sales of dairy products*, IoI, RoI and NI, 2005-15
Retail value sales grow by 4% over 2005-10
Health, functionality and provenance offer market growth opportunities

Market Segmentation

Key points

Milk yields market share to yogurt

Figure 14: Segmentation of dairy market, RoI and NI, 2010
Figure 15: Market segmentation of dairy, RoI and NI, 2005-10

Milk

Milk market bottoms out in 2010
Figure 16: Estimated retail sales of milk, IoI, RoI and NI, 2005-15
Recession and cross-border shopping exert pressure
Low-fat and fortified milk driving growth
Downward trend continues in RoI as deflation counters volume sales
Growth slows – but continues – in the NI milk market

Cheese

Figure 17: Estimated retail sales of cheese, IoI, RoI and NI, 2005-15
Cheese market remains buoyant despite branded promotions
Competition and trading down hit RoI cheese market
NI cheese market continues to climb

Yogurt

Figure 18: Estimated retail sales of yogurt, IoI, RoI and NI, 2005-15
Yogurt market offers great scope for expansion
Functional claims sweep yogurt – and the dairy market
Functional brands lead RoI category
NI yogurt category welcomes NPD

Butter, spreads & margarine (BSM)

Butter

Figure 19: Estimated retail sales of butter, IoI, RoI and NI, 2005-15
Butter comforts credit crunch consumers

Spreads

Figure 20: Estimated retail sales of dairy spreads, IoI, RoI and NI, 2005-15
Discounting dampens sales of spreads

Margarine

Figure 21: Estimated retail sales of margarine, IoI, RoI and NI, 2005-15
Long-term decline continues for margarine

Companies and Products

Key points

Figure 22: Key companies and brands supplying the RoI and NI dairy markets, 2010

Arla Foods UK plc (Arla)

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Clandeboye Estate Yoghurt

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Dale Farm Ltd

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Dairygold Food Ingredients

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Danone UK Ltd

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Donegal Creameries plc

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Fivemiletown Creamery

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Glanbia plc

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Kerry Group plc

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Kraft Foods

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

St Helen’s Farm

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

Unilever

Corporate profile
Brands and products
Brand strategy
Brand NPD and marketing

The Consumer – Consumption

Key points

Cheese in blocks

Block cheese has lowest penetration in one-person households
Figure 23: Penetration of cheese in blocks, RoI and NI, 2004-09
Health-conscious consumers cut back on frequency of consumption
Figure 24: Frequency of consumption of cheese in blocks, RoI and NI, 2004-09
Cheddar dominates, with greater origin loyalty in RoI
Figure 25: Types of cheese consumed (cheese in blocks), RoI and NI, 2004-09
Favoured cheese types: More English cheddar for NI and Brie for RoI
Figure 26: Types of cheese eaten most often (cheese in blocks), RoI and NI, 2004-09

Packeted, spread and speciality cheeses

Mothers eat more non-block cheese
Figure 27: Penetration of packeted, spread and speciality cheeses, RoI and NI, 2004-09
RoI consumers trade down to light usage
Figure 28: Frequency of consumption of packeted, spread and speciality cheeses, RoI and NI, 2004-09
Greatest growth for grated cheese
Figure 29: Penetration of varieties of packeted, spread and speciality cheeses, RoI and NI, 2004-09

Butter

Solid growth for butter
Figure 30: Penetration of butter, RoI and NI, 2004-09
Lower frequency of butter usage for health-conscious professionals
Figure 31: Frequency of consumption of butter, RoI and NI, 2004-09

Soft margarine

Higher penetration in NI for soft margarine
Figure 32: Penetration of soft margarine, RoI and NI, 2004-09
Usage of soft margarine shifts towards ‘light’
Figure 33: Frequency of consumption of soft margarine, RoI and NI, 2004-09

Low-fat spreads and dairy spreads

Weight-conscious married women favour spreads
Figure 34: Penetration of low-fat spreads and dairy spreads, RoI and NI, 2004-09
Younger consumers are light users of spreads
Figure 35: Frequency of consumption of low-fat spreads and dairy spreads, RoI and NI, 2004-09

Yogurt and fromage frais

Female and affluent consumers lead yogurt consumption
Figure 36: Penetration of yogurt and fromage frais, RoI and NI, 2004-09
An opportunity to increase frequency of usage?
Figure 37: Frequency of consumption of yogurt and fromage frais, RoI and NI, 2004-08
Figure 38: Frequency of consumption of yogurt and fromage frais*, RoI and NI, 2009

The Consumer – Attitudes towards Dairy

Key points

Greater focus on health and cost apparent in RoI

Figure 39: Agreement with statements relating to dairy products, NI and RoI, August 2010
Older NI men and affluent RoI residents cut back on dairy
Affluent women favour probiotic yogurts
NI seeks promotions, RoI trades down
Branded and premium dairy lines appeal to men

Consumer Target Groups

Key points

RoI target groups

Figure 40: Consumer target groups, RoI, August 2010

Recession-affected Purchasers

Characteristics
Who are Recession-affected Purchasers?
Targeting Recession-affected Purchasers

Cut-back Kids

Characteristics
Who are Cut-back Kids?
Targeting Cut-back Kids

Dairy Queens

Characteristics
Who are Dairy Queens?
Targeting the Dairy Queens

NI target groups

Figure 41: Consumer target groups, NI, August 2010

Health-conscious

Characteristics
Who are the Health-conscious?
Targeting the Health-conscious

Dairy Deal-seekers

Characteristics
Who are the Dairy Deal-seekers?
Targeting the Dairy Deal-seekers

Brand-loyal

Characteristics
Who are the Brand-loyal?
Targeting the Brand-loyal

Appendix – The Consumer – Attitudes

Figure 42: Agreement with statements relating to dairy products, by demographic breakdown, NI, August 2010
Figure 43: Agreement with statements relating to dairy products, by demographic breakdown, NI, August 2010
Figure 44: Agreement with statements relating to dairy products, by demographic breakdown, RoI, August 2010
Figure 45: Agreement with statements relating to dairy products, by demographic breakdown, RoI, August 2010

Appendix – The Consumer – Target Groups

Figure 46: Agreement with statements relating to dairy products, by consumer target group, RoI, August 2010
Figure 47: Agreement with statements relating to dairy products, by consumer target group, NI, August 2010
Figure 48: Consumer target groups, by demographic breakdown, RoI, August 2010
Figure 49: Consumer target groups, by demographic breakdown, NI, August 2010