Printer Friendly

US Yogurt Drinks Market Matures with Levels of Household Penetration that are Largely Disappointing to the Industry.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c57727) has announced the addition of Yogurt Drinks in the United States 2006 to their offering.

The U.S. market for yogurt drinks has begun to mature, with levels of household penetration that are largely disappointing to the industry.

These products have comprised one of the most exciting and fastest-growing parts of the dairy business for the past few years. Industry players took their initial success as confirmation of their suspicions that yogurt drinks could become a mainstream category.

Indeed, yogurt drinks make a lot of sense to today's consumers. They are portable, nutritious, easy to consume, and relatively low in calories. They also have considerable health benefits, and are beneficial to the digestive system. While they must be refrigerated, yogurt drinks may offer the perfect balance of taste, convenience, nutrition and, increasingly, specific functionality to demanding consumers. There are reasons for optimism about the possibility of renewed double-digit growth in yogurt drinks, including new flavors and packaging, rising interest in probiotic health benefits, and the extension of the category into new forms of hybrids, including combinations with energy drinks.

Yet, there are strong signs that the growth of the yogurt drink market is consolidating and that the industry is in for a breather. Sales growth has slowed considerably from the preceding few years. For the first time in our surveys, consumers expressed a dislike of the products rather than a lack of awareness. After years of new-product proliferation, some makers are beginning to drop out, including some well-known brands.

Drinkable yogurt is defined as a dairy-based yogurt that is drinkable and in a liquid form that may or may not include fruit or fruit flavoring. Some yogurt drinks are actually, or further, described as "smoothies," and they are included in this report. These products typically are about half juice and half fat-free yogurt, and they are included here because they are made and marketed by dairy companies and considered by the producers as yogurt drinks.

Not included are frozen yogurt or yogurt in a cup or tube.

Scope and Themes

What you need to know

Definition

Abbreviations and terms

Abbreviations

Executive Summary

A maturing market drops below 10% annual growth--what next?

New developments help category build on strong foundation

Products aimed at adults have come to dominate

Major players still dominate, but smaller companies contribute too

Supermarkets now display as many yogurt drinks as do natural foods stores

Consumer research shows that market is mature to the point where niche products can succeed, but a significant minority will never be buyers

Market Drivers

A solid start ensures a significant future

Better-for-you has gone mainstream

Hispanic consumption provides reliable growth

Figure 1: U.S. population, by age and race/ethnicity, 2006

Segment leaders create pull with marketing and product innovations

Market Size and Trends

Market size

Figure 2: Total U.S. retail sales of yogurt drinks, at current and constant prices, 2001-06

Wal-Mart estimate

Market trends

Pace of U.S. new-product introductions healthy enough

Figure 3: Total U.S. new introductions of yogurt drinks and yogurt, 2002-06

Targeting, specific advantages underlie most new products

Emerging fruit favorites head up a limited parade of fresh flavors

American consumers may finally be embracing "gut health"

Nutritional functionality increasingly comes to the fore

Figure 4: U.S. introductions of yogurt drinks and yogurt, by top 10 product claims, 2002-06

Some sub-categories and products struggle in lower-growth environment

Yogurt drinks tap into popularity of smoothies and energy drinks

Flat market turns up pressure on pricing and marketing tactics

Market Segmentation

Overview

Figure 5: Sales of yogurt drinks at FDM, segmented by adults and kids, 2004 and 2006

Yogurt drinks for adults

Figure 6: Sales of adult yogurt drinks, at current and constant prices, 2001-06

Yogurt drinks for kids

Figure 7: Sales of yogurt drinks for kids, at current and constant prices, 2001-06

Supply Structure

Companies and brands

Figure 8: Manufacturer sales of yogurt drinks in the U.S., 2004 and 52 weeks ended mid-year 2006

Figure 9: Manufacturer brand sales of yogurt drinks in the U.S., 2004 and 52 weeks ended mid-year 2006

Company profiles

Dannon Company Inc.

General Mills Inc. (Yoplait)

Stonyfield Farm

Lifeway Foods

Dean Foods Inc. (White Wave)

Wells Dairy Inc. (Blue Bunny and Weight Watchers)

Marquez Brothers

Advertising and Promotion

Introduction

Dannon

Figure 10: Dannon's DanActive, 25-44 age group

Figure 11: Dannon's DanActive, focus on the whole family

General Mills (Yoplait)

Figure 12: Yoplait Go-Gurt Smoothie

Lifeway Foods

Stonyfield

Retail Distribution

Introduction

Figure 13: U.S. retail sales of yogurt drinks, by channel, 2004 and 2006

Supermarkets

Figure 14: U.S. supermarket sales of yogurt drinks, at current and constant prices, 2001-06

Mass merchandisers

Figure 15: U.S. mass-merchandiser sales of yogurt drinks, excluding Wal-Mart, at current and constant prices, 2001-06

Drug stores

Figure 16: U.S. drug-store sales of yogurt drinks, at current and constant prices, 2001-06

Other outlets

The Consumer

Introduction

Summary

Consumption of yogurt and yogurt drinks

Figure 17: Consumption of various categories of yogurt products, 2001-05

Purchase of yogurt drinks

Figure 18: Purchase of yogurt drinks, by gender, September 2006

Figure 19: Purchase of yogurt drinks, by age, September 2006

Figure 20: Purchase of yogurt drinks, by household income, September 2006

Figure 21: Purchase of yogurt drinks, by race/ethnicity, September 2006

Figure 22: Purchase of yogurt drinks, by number of children in the household, September 2006

Purchase of yogurt drinks for kids and teens

Figure 23: Purchase of yogurt drinks by households with kids under 18, by age of kids, September 2006

Figure 24: Purchase of yogurt drinks by households with kids under 18, by household income, September 2006

Figure 25: Purchase of yogurt drinks by households with kids under 18, by race/ethnicity, September 2006

Frequency of yogurt drink consumption

Figure 26: Frequency of consumption by yogurt drink consumers, by gender, September 2006

Figure 27: Frequency of consumption by yogurt drink consumers, by age, September 2006

Figure 28: Frequency of consumption by yogurt drink consumers, by income, September 2006

Figure 29: Frequency of consumption by yogurt drink consumers, by race/ethnicity, September 2006

Figure 30: Frequency of consumption by yogurt drink consumers, by number of children in the household, September 2006

When people consume yogurt drinks

Figure 31: Occasions for drinking yogurt drinks, by daypart, September 2006

Yogurt drinks as breakfast replacements

Figure 32: Agreement with yogurt drinks as healthy breakfast replacements, September 2006

Attitudes and behavior towards yogurt drinks for kids

Figure 33: Agreement with yogurt drinks as healthy breakfast replacements, September 2006

Why people consume yogurt drinks

Figure 34: Main reason for drinking yogurt drinks (besides taste), by age, September 2006

Leading brands

Figure 35: Leading yogurt drink brands, September 2006

Why people do not drink yogurt drinks or smoothies

Figure 36: Reasons for not drinking smoothies/yogurt drinks at home in the past month, by gender, September 2006

Figure 37: Reasons for not drinking smoothies/yogurt drinks at home in the past month, by age, September 2006

Future and Forecast

Future Trends

Next steps depend on industry's assessment of the present

Functionality will be focus of innovations in adult marketplace

Kids' and teen market revival being attempted with new products

Producers will try to permeate the day with yogurt drinks

Market Forecast

Yogurt drinks

Figure 38: Forecast of total U.S. FDM sales of yogurt drinks, at current and constant prices, 2006-11

Adult yogurt drinks

Figure 39: Forecast of U.S. FDM sales of adult yogurt drinks, at current and constant prices, 2006-11

Yogurt drinks for kids

Figure 40: Forecast of U.S. FDM sales of yogurt drinks for kids, at current and constant prices, 2006-11

Forecast factors

Appendix: Trade Associations

Appendix: New Product Briefs

Companies Mentioned:

- Dannon Company Inc.

- Dean Foods Inc. (White Wave)

- General Mills Inc. (Yoplait)

- Lifeway Foods

- Marquez Brothers

- Stonyfield Farm

- Wells Dairy Inc. (Blue Bunny and Weight Watchers)

For more information visit http://www.researchandmarkets.com/reports/c57727
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:May 24, 2007
Words:1323
Previous Article:Gain Valuable Insight into Projected US Business Dial-up Internet Access Services Expenditures to 2011.
Next Article:Kentuckiana Engineering Company, Inc. Named "Official Small Business of NASCAR Courtesy of Office Depot".


Related Articles
Lactose: truth or intolerances.
YOGURT Diving for Cultured Pearls.
Vata diet modified for postpartum mothers. (Postpartum Care).
Sweet appeasement. (New Business).
New bars, old tricks.
Milking the data: does dairy burn more fat? Don't bet your bottom on it.
Who buys functional foods?
Steady growth for plastic bottles.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters