Delivering solutions, shaping the future. Yogurt Global Market Analysis March 23, 2012 North...

Delivering solutions, shaping the future.

Yogurt Global Market Analysis

March 23, 2012North America, Latin America,

Europe, Asia


Yogurt Market Scope

The yogurt market includes spoonable yogurt, drinkable yogurt, Greek, and probiotic varieties


Global Yogurt Continues to Grow

2011-16 absolute growth***4.1% and $16 Billion***

Global Retail Sales of Yogurt 2011-2016

4% 4.2% 4.4% 4.1% 4%

*Year on year growth


Top Yogurt Markets Largest Consuming Yogurt Countries

Fastest Growing 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

Rank Country 2011-16 CAGR % Value 2011-16 Absolute ($Millions)

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


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


Yogurt-NA Industry Background-NA

o $9.9+ billion industry• 2011-16 CAGR % Value growth: 9.9%

o Greek yogurt share has grown to 13.2%o Over 50% of the market is dominated

by Danone, Groupe and Sodiaal SA

Major Marketers (Brands)o Danone, Groupe (Danone, Activia)o Sodiaal SA (Yoplait)o Private Label(Private Label)o Agro Farma Inc (Chobani)

Company $ Share


Yogurt-NA

Packagingo Plastic cups sealed with an aluminum foil top is typical

o Set type packaging is when fruit is in the bottom of the cup and yogurt is on top

o Swiss type packaging is when fruit and yogurt are blended together

o FDA regulates the label• must indicate whether the yogurt has been ‘heat-treated’ or ‘active cultures’

o Drinkable styles are found in bottles


Yogurt-NA

Packaging-NA

Danone, Groupe Sodiaal SA

Agro Farma IncPrivate Label

Plastic BottleFoil Seal closure

Graham Packaging$4.68 (12x3 10 fl oz)

Plastic Tubmulti laminate seal closure

Spartech Packaging$7.41 (16x3. 53 oz)

TubeFlexible packaging

Unknown company$7.55 (32x2. 25 oz)

Plastic TubFoil seal closure

Unknown company$0.98 (6oz)


Unknown company(6oz)


Unknown packaging company

$0.45 (6oz)


Trends & Considerations-NA

Trends & Considerationso Yogurt and sour milk drinks increased by 9% in current value

terms to reach US$8.0 billion in 2011

o Americans are turning to yogurt as a nutritious breakfast or tasty snack

o 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.


Trends & Considerationso Pro/pre biotic spoonable yogurt is expected to see the fastest

growth in 2011• 25% current value increase

o Unit prices of yogurt expected to increase slightly in 2011 due to an increase in milk prices

o 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

Trends & Considerations-NA


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-LAo Danone (Danone, Activia)o Nestle SA (Nestle, Chamyto)o Yakult Honsha (Yakult)o Alpina Productos (Alpina)

Company $ Share


Yogurt- LA

Packagingo 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


Baby Formula-Brazil Packaging

13

Danone

Brf Brasil Foods Alpina Productos

Nestle


$1.60 (5.3 oz)

Plastic Tub$0.54 (5.12 oz)

Plastic TubFoil seal closure$0.58 (3.88oz)

Plastic BottleFoil seal closure$0.44 (8.65oz)

Plastic Tub$0.94 (6.18 oz)

Plastic BottlePlastic cap closure

$1.13 (9.47 oz)

Plastic BottlePlastic cap closure

$3.30 (30 oz)


Trends & Considerations-LA

Trends & Considerationso Vanilla yogurt is a natural accompaniment to fruit

dishes served in the morning

o 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

14


Yogurt – Europe Industry Background –

Europeo $28.6 billion industry

• CAGR % value growth for 2011-16

– EE: 9.8%– WE: 3.9%

o Largest markets: Germany, France, UK, Spain, and Italy

Major Marketers (Brands)o Danone (Danone, Activia,

Nutriday)o Private Label (Private Label)o Molkerei Alois Muller (Muller,

Froop)o Sodiaal SA (Yoplait)

Company $ Share


Yogurt – Europe

Packagingo Yogurt found in plastic cups and

sealed with an aluminum foil top

o Drinkable yogurt styles found in bottle

o Occasionally found in glass jars


Yogurt- Europe

Packaging – Europe

Danone Sodiaal

Molkerei Alois MullerPrivate Label


$1.65 (4x4 41 oz)

Plastic TubMulti laminate seal closure

$3.49 (4x4 24 oz)

Plastic TubPaper seal closure$2.48 (8X4 41 oz)


Optipack Packaging

$0.66 (5.3 oz)

Plastic BottleFoil seal closure

$2.40 (6x3 53 oz)


w/ plastic overcap

$0.52 (17.65 oz)


Trends & Considerations-Europe

Trends & Considerationso Recession and current economy has reduced consumer

purchasing power and confidence• consumers moving away from branded to private label products.

o Fruited spoonable yogurt saw the strongest performance in value and volume growth in 2011

o Drinkable yogurt saw record sales in 2011• The popularity varies by country (less popular in France)

Source: Euromonitor 2010


Trends & Considerations


oIncreased consumption of products designed for on-the-go

oDanone designed first bio-mass based plastic container for Activia in Germany


Yogurt – Asia Industry Background – Asia

o $17.7 billion industry• 2011-16 CAGR % value

growth: 9.6%o Private label only accounts for

0.7% of market

Major Marketers (Brands)o Yakult Honsha (Yakult)o Meiji Holdings (Bulgaria, LG21)o Morinaga & Co (Morinaga)o China Mengniu Dairy (Mengniu)

Company $ Share

52.1%


Yogurt- Asia

Packagingo More variety in drinkable yogurt

packages• Found in plastic bottles, pouches, and

cardboard cartons


Yogurt- Asia Packaging

Yakult Honsha

Morinaga & Co

Meiji Holdings

China Mengniu Dairy

Pouch$1.79 4.59 0z

Plastic Tub$1.22 (4.24

oz)

Plastic Bottle$0.58 (11.83 oz)

Plastic Lined Board Carton

$3.34 (3x3 38 oz)

Plastic Tub$1.93 (4x2 82 oz)


Trends & Considerations-Asia


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 • Rising incidence of life-style related health concerns such as diabetes and

obesity

o China represents the fastest growing regional market for yogurt, in terms of consumption (value and volume)


Overall Trends and Considerations Trends and Considerations

o Marketers differentiate by focusing on health benefits, branding, and incorporation of ingredients (namely fruit)

o Households with children constitute the segment with potential growth opportunities

o Market is shifting in some countries from traditional, spoonable yogurts to drinkable varieties

o Probiotics total sales expected to grow with consumer awareness of health benefits

o Popularity of private label yogurts varies by country

Source: Euromonitor 2010


Packaging Considerations and Opportunities Weaknesses of current packaging include:

o Must remember to pack a spoon when consuming traditional yogurt on-the-go

o The glass jars (sometimes found in Europe) are expensive, dangerous, and heavy

o 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


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 Emerging technologies such as high hydrostatic pressure (HHP) reduces fermentation time of yogurt milk

o Hinged lids for larger containers would add convenience


Opportunities to improve packaging include:

o Innovative design changes that include spoon with the container • Similar to individualized ice cream

containers

o Pouches offer excellent visual appeal, portability, and are sustainable

o BAP technology to ensure freshness of the product and create an easier opening experience

Packaging Considerations and Opportunities


Yogurt – Aptar Developments Aptar Developments

28

110mm Non-DispensingScoop n’ Lid

110mm DispensingScoop n’ Lid

o Features/Benefits• Convenient

• Attached spoon

• Hinged Closure• Prevents missing caps


Yogurt – Aptar Developments

Aptar Developments

Valve captured between fitment and snaptop

overcap

o Features/Benefits

• Differentiating design

• Dispensing convenience

• Accurate product placement and cutoff


Aptar Developments

Yogurt – Aptar Developments

Non-Choke

Elliptical spout

SimpliSqueeze

o Features/Benefits

• Differentiating design

• Dispensing convenience

• Accurate product placement and cutoff

• Child-safe

• Larger branding space


Yogurt- Aptar Dairy Developments

2035 Frost Snap Top

SimpliSqueeze

2234 Snap TopSimpliSqueeze



Custom Snap TopCustom Widemouth

Closure


Custom Snap Top

SimpliSqueeze

Custom Snap Top

SimpliSqueeze

2-1/8’’ Snap Top

38-400 SimpliSqueeze Custom Snap

TopSimpliSqueeze



54 mm Snap Top

33-400 SimpliSqueeze

Ribbed Pour Spout38-400

2-1/8’’ Snap Top33-400 Frost

Directional Pour Spout33-400



Custom 44 mm Snap Top

Delivering solutions, shaping the future. Yogurt Global Market Analysis March 23, 2012 North...

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