Consumer Corner: Yogurt Market: Current Status and Consumption Trends

• higher number of yogurt products available at the retail level;
• greater advertising spending on yogurt;
• functional claims such as probiotics for some yogurts; and,
• the fact that yogurt may be perceived by consumers as a healthy food

Alberta Grocery Sales Data, Value of Yogurt Sales (Million Dollars)

Source: Nielsen Market Track, Alberta All Channels, 2009 to 2012

Other than the aggregate per capita consumption available through the Canadian Dairy Information Centre, there are very few publically available data sets that allow anyone to examine actual yogurt consumption/purchases in Canada. However, Package Facts has recently completed a some fairly thorough market research on the yogurt in U.S. The next section provides a brief overview of yogurt market and consumption trends in U.S.

Yogurt Market in U.S.
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• Package Facts estimate the U.S.  market for yogurt sold at retail to be $7.3 billion in 2012, up 6.6% from 2011. They also estimate that by 2017, sales will hit almost $9.3 billion.
• This growth is attributed to one sub category: Greek yogurt.  Packaged Facts estimates that Greek yogurt dollar sales increased more than 50% in 2012 food retail channels, excluding Walmart. At the same time, non-Greek yogurt has seen its sales decrease by 8%.
• Supermarkets are the largest channel for yogurt sales in 2012 (65% of the total yogurt sales). Other important channels include supercenters/mass markets, natural and specialty gourmet stores and wholesale clubs.
• A consumer survey also reveals that consumers usually buy yogurt from supermarkets or grocery stores (73%).
• Refrigerated yogurt is the eighth largest selling subcategory in food, drug and mass market (excluding Walmart).
• The top three marketers of yogurt account for almost three quarters of all yogurt sales in food, drug and mass market channels. The story is different in natural food stores and specialty gourmet channels, where the leading players are niche brands.
• Private label controls a large share of the market in refrigerated yogurt.
• Yogurt sales are growing in food services menus.
• The yogurt category introduces a number of innovative new products each year. Many of the new products are or contain Greek yogurt.

• According to the consumer survey (Simmons Survey, 2012), yogurt and smoothie consumption has held steady over the past several years. However, USDA has reported that annual production of yogurt products in US has increased from 3058 million pounds in 2005 to 4272 million pounds in 2011, a 40% increase.
• A recent report from The NPD Group, titled National Eating Trends found that population segments 18-34 year old and 45-64 year old are the biggest consumers of breakfast yogurt.
• Yogurt usage by gender (percent)

  Question	All	Women	Men
  Do you eat yogurt?	55%	67%	42%
  Do you personally buy yogurt?	67	74	58
  Of those who personally buy yogurt, do you buy yogurt at least once a month?	88	86	90

• About 45% of consumers picked breakfast as the time of day they usually consume yogurt products. Other times prove popular as well, with 32% of consumers eating yogurt at lunch, followed by 32% eating as an afternoon snack, 25% eating as a late morning snack, and 22% eating yogurt as a late night snack (22%).
• Consumers who have bought Greek yogurt in last 30 days (from the survey date) stated the following reasons for buying Greek yogurt over other kind of yogurt.

  Reason	Percent
  It's healthier	53%
  It's tastier	47
  It has higher protein content	46
  It has better texture	44
  It's more filling	34
  It has less sugar	19
  It has fewer calories	17
  It has less sodium	8

• Canadian consumers eat three times as much yogurt as American consumers.
• Greek yogurt has been revolutionary trend in the market and growing at about 10% each year.
• Growing Greek yogurt has heated up the competition between producers in Canada and had led to a recent federal court case.
• The top two marketers of yogurt in Canada and U.S. are Danone SA (Danone, Activia, Stonyfield Farm and Danimal brands), General Mills Inc. (Yoplait).

• Canadian consumers eat three times as much yogurt as American consumers.
• Greek yogurt has been on a growth trend. Sales are growing at about 10% each year.
• The top yogurt brands in Canada and U.S. are: Danone, Activia, Stonyfield Farm, Danimal, and Yoplait.

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