The French consume less and less yogurt. This product, although generally the favorite of our households, is suffering the brunt of inflation and can no longer attract new generations of consumers.
In 2022 the price of yogurts could rise by more than 15%
The yogurt market is in crisis. This may sound trivial, but it is actually very serious. When we talk about yogurt, it can make everyone laugh, but the ultra-fresh dairy department, as the specialists say, is not a small market. We are talking about a business of almost 5,000 million euros a year. In France, we are practically the world champions. Only the Dutch eat more pots than the French (about 185 a year vs. 165). Thus, we have industrialists who are world champions like danone, Yoplait and Lactalis, which has partnered with Nestlé. Today, all these players look a bit gray because in the first months of the year sales fell by almost 4%.
This drop can be explained in the first place because there is a global phenomenon that affects all food consumption. We consume much more at home during the 2 years of Covid. Today we stand out a little more and there is a less buoyant economic context. If we are not in a real economic crisis, there is the war in Ukraine that can be worrying. Then and above all there is inflation. However, the less a product is processed, the more its price rises when the cost of the raw material rises. This is what happens with milk. We believe that this year the price of yogurt could rise by more than 15%. Thus, the consumer arbitrates buying fewer yogurts or lowering the range and price.
The priority must be to attract young people who are the consumers of tomorrow
Therefore, the French industrialists mentioned have reason to be concerned. Obviously, it is always better to be in a buoyant market than a declining market. When consumption falls but production costs rise, we are sometimes forced to sacrifice our margins due to lower turnover. This can also favor famous store brands, the yoghurts sold under the big brand names. It is cheaper and already represents a third of the market. However, there is still hope. In fact, the yogurt market is supply driven. Innovation doesn’t necessarily work for long, but it does.
We can throw greek yogurts or skyr. We can promote gourmet recipes with fruit, chocolate and protein content. Yogurt is an affordable luxury, and that’s good news for manufacturers. You don’t have to be very rich to treat yourself to a little sweetness. If times are a little tougher, the smarter ones will surely be able to pull through. The real risk is actually generational. Young people eat less and less yogurt. The age group of 15 to 35 years has reduced its consumption by 15% in fifteen years. Therefore, the priority must be to attract young people who are the consumers of tomorrow. This may mean pushing all products made with almond milk, coconut milk, or rice juice and finding alternatives to plastic jars. So many adjustments that could contribute to shuffling the cards in the yogurt a bit.