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U.S. Yogurt Drinks Up 62% in Five Years

By CSD Staff | October 11, 2016

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mintelThe yogurt category’s health and convenience as well as its wide array of flavors and formats are helping it grow.

Sales of yogurt drinks have skyrocketed, growing 62% from 2011 to 2016, according to the latest research from Mintel.

A relative newcomer to the yogurt sector, yogurt drinks* are a standout in the yogurts market. Indeed, between 2011 and 2016 dollar sales of this refrigerator favorite are estimated to have grown 62% to reach $893 million. Volume sales at MULO (multi-outlet) rose 73% to 407 million pints. Sales of drinkable yogurt are expected to grow 11% in 2016, making this the second straight year of double-digit gains.

Despite strong gains for yogurt drinks, the dominant spoonable yogurt segment continues to account for the majority of sector sales. Valued at $8.2 billion in 2016, spoonable yogurt represents an impressive 90% of all yogurt and yogurt drink sales and is expected to continue steady growth moving forward to reach $10 billion by 2021.

In terms of overall sales, the market for yogurt and yogurt drinks is forecast to grow three percent in 2016 to reach $9.1 billion, with total sales expected to reach $11.4 billion in 2021. Today some 66% of U.S. adults purchase spoonable yogurt, while three in 10 (30%) purchase yogurt drinks.

“While boom times ushered in by the novelty of Greek yogurt are fading, the yogurt category’s draw of convenient health, and the recent expansion of flavors and formats, helps retain interest and preserve participation in the market. Yogurt drinks are becoming increasingly popular among U.S. consumers, and as adoption of the yogurt drinks segment grows, so too does innovation. It’s one of the few food and drink spaces where launch activity sees brand-new products outpacing simple variations on form,” said Beth Bloom, Senior Analyst, US Food & Drink at Mintel.

A popular breakfast choice, yogurt is among America’s top five breakfast items with just under half (45%) of U.S. consumers purchasing yogurt at retail for breakfast; however, cereal (65%), fruit (55%), bread (55%) and breakfast meals (48%) take top billing.

When it comes to eating occasions, a phenomenal 93% of yogurt/yogurt drink consumers eat it for breakfast. But the market appears to be gaining ground in the snacking arena. More than nine in 10 (93%) yogurt/yogurt drink users say that they consume these products as a snack. Mintel research reveals that more consumers are choosing yogurt as a snack today than in previous years as 84% choose yogurt as a morning or afternoon snack (respectively), up from 37% who chose it as a morning snack and 41% who snacked in the afternoon in 2014.

“A growing acceptance of yogurt as a snack creates huge opportunity for the market considering the importance of snacking in U.S. diets. As a result, we’re seeing product innovation expand to include formats that fit non-breakfast occasions, including savory and satiating varieties,” continued Bloom.

Well-being is a major driver for many U.S. yogurt consumers, with more than two in five (43%) buying yogurt for digestive health. Meanwhile, almost one quarter (23%) of users buy yogurt for weight loss, and calcium ticks the box for 43% of female yogurt consumers compared to 37% of consumers overall. However, Mintel research indicates that full-fat options are popular among Millennials as they are the most likely (22%) demographic to purchased whole-fat yogurt/yogurt drinks (compared to 16% overall), in the three months ending May 2016.

“Full-fat varieties are seeing strong sales growth at natural channels, while non-fat options struggle, pointing to a growing acceptance of fat in food. As consumers appear increasingly interested in functional benefits from their food and drinks, communicating how yogurt and yogurt drinks can contribute to these health needs will be a means of standing apart from the crowd,” concluded Bloom.

*Yogurt drinks include refrigerated yogurt products in a liquid, drinkable form. These products may include fruit or fruit flavoring; including yogurt “smoothies,” kefir, lassi, etc.

 

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