Over the Easter period, which tends to see growth for cream and cheese products, the UK dairy market slowed down – by 1% since the last period. This is according to a report published by Kantar Worldpanel.
In the last 12 weeks, growth eased from 3.1% down to 2.1%. Dairy remains ahead overall in total grocery sales, but the main decline came from milk, which saw a decline in growth of over £15 million overall. Despite this, it is still growing by £25 million compared with the same period in 2018.
Small year-on-year increases can be seen in cream and cheese, with cheese revenue up by 2.3% from 2018, and cream up by 5.4% – the best performing out of all dairy products in comparison to last year.
Ollie Blurring, client executive, Kantar Worldpanel commented: “Volume growth for all markets also eased with dairy at 1.7%, from 3.3% compared to grocery at 1.1% from 1.5% while fresh and chilled was at 1.0% from 2.2%.
“Volume growth saw less of a fall back than spend across all three markets as they began to annualise on the high levels of inflation seen last year, something that was particularly prominent in the dairy market.”
Blurring continued: “A large amount of milk is sold at full price and this is where the decline in growth [occurs].”
The decline in milk revenue is indicative of the industry’s response to milk-alternatives, such as soy- and almond-derived products.
© FoodBev Media Ltd 2024
