Drinking yoghurt isn’t as coagulated as yoghurt, but rather has a smoother and more liquid consistency. Locally, it’s growing in popularity.
According to the latest statistics from leading research companies BMi Research and Euromonitor International, the South African drinking yoghurt market continues to increase in both volume and value. Manufacturers have focused on driving their core brands, as cash-strapped consumers tend to seek value for money, often switching to brands that offer promotional deals.
The drinking yoghurt market is dominated by key larger players, with a plethora of smaller dairies producing their own products, too. In 2012, Danone Southern Africa led the category with a value share of 44 per cent, followed by Dairybelle (15 per cent) and Parmalat SA (seven per cent). Danone’s Nutriday was the biggest selling brand, with its Yogi Sip close behind, followed by Parmalat SA’s Parmalat brands.
Manufacturers are expected to continue to focus on innovation, particularly in terms of packaging, in order to increase the appeal of yoghurt. By meeting consumer demand for both convenience and health and wellness, they’ll ensure increased volume sales in the near future. Consumers will also need further education in terms of the benefits of consuming yoghurt – particularly fortified yoghurts, or yoghurts with specific health claims such as aiding digestion or lowering cholesterol.
It’s hypothesised that drinking yoghurt marketing campaigns have played an effective role in the year-on-year growth of this category. Players in the market feel that the rise in the popularity of drinking yoghurt is sourced primarily within brand activities and the health positioning of the category. Top-end retail demand for drinking yoghurt continues to be the dominant consumption channel. Bottom-end retail outlets have also shown growth by ensuring that the product is within reach in this sector.
Rigid plastic is the dominating pack type, with new additional pack sizes expected in this category. Sachets are predicted to grow in this market, too, as there are players planning to enter this pack type category.