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Milk, Dairy and Non-Dairy Beverage Innovation in Europe: Market Sizes, Trends and Development.

A new Leatherhead Food International report: Milk, Dairy and Non-Dairy Beverage Innovation in Europe--Market Sizes, Trends and Development, not only explores the established milk market, but also looks at the growing range of alternative dairy drinks available to European consumers.

Among them flavoured milks and milk drinks, yoghurt drinks, one-shot functional milk drinks and non-dairy milks and drinks, including the fast-growing soya milk sector. Overall sales of milk and dairy beverages in seven key countries in Europe were worth almost 16.8 bn Euros in 2004. By volume, sales were over 20 bn litres while, in per capita terms, consumption was 60.6 litres, with expenditure of 50.72 Euros per person.

Milk is by far the largest single sector of the market, accounting for 80.5% of value and 91.5% of volume. It is also the only sector not showing strong annual growth, because of its nature as a mature and staple food category. But while the market is in long-term volume decline, value sales are starting to show signs of growth as consumer demand for added-value and functional milks increases.

The dynamic growth of the one-shot functional milk drinks market is indicated by the fact that the sector was only pioneered in Europe in the mid-1990s and is already the second largest dairy beverage category by value. It takes 7.9% of total value, although its volume share is still only 1.6 p%. It also represents the fastest-growing sector of the milk and dairy beverages market, demonstrating growth of 38 per cent by value across Europe in 2004.

Many of Europe's major dairy firms are among the top companies in the world, so it is unsurprising that the region is at the forefront of milk and dairy beverages development. While some ideas have come from overseas (such as one-shot probiotic drinks, which originated in Japan), there are many significant dairy businesses in Europe that are leading global innovation and R&D. Levels of NPD in the milk and dairy drinks sectors are currently very high, and significant recent developments include anti-ageing milks (Parmalat's Jeunesse in Italy), blood pressure-lowering one-shots (Unilever's Flora pro.activ Blood Pressure and Iparlat's Kaiku Vita in the UK and Spain) and soya milk and fruit juice blended drinks (Alpro's Soya & amp; Fruit in the UK and Germany).

These and many other new product developments are discussed in more detail within LFI's new report.

Contact LFI on tel: 01372 822 372 or visit
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Title Annotation:INFORMALIA
Publication:Food Trade Review
Date:Dec 1, 2005
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