Greek yoghurt trend goes global

Greek yoghurt continues to be a key area of activity in the fresh dairy market, with nearly 8 per cent of the total yoghurt launches recorded globally by Innova Market Insights in the last year.  This was up from less than 2 per cent five years previously, with actual launch numbers rising more than fivefold over that period.

The current rapid growth trend started in North America, where launches of Greek and Greek-style products made up 29 per cent of US yoghurt launches recorded in the 12 months to the end of June 2012.  In Australasia, Greek and Greek-style yoghurts represented 15 per cent of all launches and nearly 10 per cent in Western Europe.

In Australia, there has been a sharp increase in launches recently, to the point that Greek and Greek-style yoghurts now represent more than 10 per cent of the yoghurt shelf space in large supermarkets.  US-based Agro-Farma's recent assault on the local market with Chobani  - the number one yoghurt in the US - has also been a source of growth. Having acquired local yoghurt manufacturer Bead Foods in mid-2011, the company began trialling Chobani in Woolworths stores in NSW last November, marking its first international expansion.  It has subsequently launched the brand nationwide and begun manufacturing the product locally.   Other key brands in this market include Dairy Farmers, Jalna, Fonterra-owned Fresh’n Fruity, Farmers Union, Black Swan, Chris’ and Danone provide natural Greek style yoghurt in family size packs, including low fat and no fat variants.

Continuing growth for the product has been attributed to its inherent health qualities combined with its thick and creamy taste. Lu Ann Williams, research manager at Innova Market Insights, believes that despite rapid growth and increasing maturity, there is still further capacity for development in Greek yoghurt internationally. The healthy yet indulgent image of the products, she says, offers consumers an affordable everyday treat option, with the additional bonus of a healthy, natural image.

As competition has increased the global market has seen an increasing range of formats and flavour options. Products tend to be probiotic and to come in a range of fat contents, commonly featuring wholemilk, two per cent fat and zero per cent fat variants.  Traditional plain and honey variants have also been joined by a whole range of fruit and other options, including lines giving an American spin with the use of US-style flavours such as blueberry and key lime pie.