DAIRY PRODUCTS GOS-012
A GLOBAL OUTLOOK, SEPTEMBER 2008
Contents
1. Overview 1
Product Introductions and Trends 1
Yogurt and Cheese Rules the Roost with High Number of New
Product Introductions 1
Global Milk Production 2
Table 1: Global Milk Market (2006): Percentage Breakdown of
Production Volume for European Union, USA, China, Brazil, New
Zealand, Australia, Argentina and Others 2
2. Market Trends 2
Dairy Product Prices 2
Milk Powder Witness Steep Rise in the Prices 3
Rise in the Demand of Cheese, Butter Declines 3
Trends in the Prices of Global Dairy Products During 2006-2007 3
World Dairy Products Sales Concentrated in Major Markets 4
Asia Leading the Way in Dairy Products 4
Value Added Dairy Products: An International Perspective 4
Growing Demand for Natural/Organic and Fortified Milk 4
Store Ice Creams – An All-Time Favorite Among Consumers 4
Packaging Innovations and Promotional Strategies Paying Off 5
Increase in Segmentation of Consumption 5
Expanding Urbanization and Rising Incomes 5
Market Consolidation Sets In 5
Global Consumption 5
Table 2: Global Market for Dairy Products by Geographic
Region – USA, Canada, Japan, Europe, Asia-Pacific, Middle
East, and Latin American Markets Independently Analyzed
with Annual Sales Figures in US$ Million for Years 2003
through 2008 6
Multiple Product Introductions – Stimulates Dairy Market 6
Source of Growth for Dairy Products 7
Health Consciousness Fuels Introduction of New Flavors 7
Global Dairy Industry – Key Facts 7
Churning Out New Opportunities 7
Table 3: Leading Players in the Global Dairy Food Market
(2005): Sales in € Billion for Nestle, Dean Foods, Lactalis,
Danone, Dairy Farmers of America, Fonterra, Arla Foods,
Kraft Foods, Unilever, and Royal Friesland Foods 8
Table 4: Global Market for Dairy Products by Product Segment –
Fluid Milk, Yogurt and Related Products, and Cheese
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2003 through 2008 8
Trade Scenario 8
Global Dairy Products Exports Slowdown 8
3. The Segments 9
Milk 9
Milk Industry Outlook 9
Future Trends in Brand Development 9
Rising Demand for Milk Products in the Global Market 10
Table 5: Global Market for Fluid Milk by Geographic Region –
USA, Canada, Japan, Europe, Asia-Pacific, Middle East, and
Latin American Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2003 through 2008 10
Butter 10
Cheese 10
Table 6: Global Market for Cheese by Type – Hard Cheese, Soft
Cheese, and Processed Cheese Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2003 through
2008 11
Yogurt 11
Cream 11
Ice Creams 11
Other Dairy Products 12
Whey 12
Butter Milk 12
4. Mergers and Acquisitions 12
5. Strategic Corporate Developments 23
6. Product Launches 27
A REGIONAL PERSPECTIVE
1. North America 30
1a. United States 30
Overview 30
Table 7: Dairy Products Market in the US (2004 & 2005):
Production on ‘000 Pounds by Select Product Type – Total
Cheese (excluding Cottage Cheese), Cheddar Cheese, Butter,
Nonfat Dry Milk, and Total Dry Whey (excluding Modified Whey
Products) 31
Effect of Dairy Market on US Economy 31
US Dairy Policy 31
World Dairy Prices 31
Key Market Trends 31
Private Label – Growing in Significance 31
Organic Milk Market Booming 32
Natural Cheese Growing in Demand 32
Innovations Spark Up the Ice Cream Market 32
Trans Fat-Free Spreads Drives Up the Margarine/ Spreads/
Butter Sector 32
Commercial Dairy Demand Expected to Increase 32
Table 8: US Market for Dairy Products by Product Segment –
Fluid Milk, Milk Powder, Butter, Cheese, Ice Cream and
Related Products, Yogurt and Related Products, and Cream
Independently Analyzed with Annual Sales in US$ Million for
Years 2003 through 2008 33
Retail Sector 33
Imports and Exports 33
Table 9: Dairy Products Market in the US (2001-2005):
Imports in US$ Million by Category – Cheese, Butter Milk &
Cream, and Other Products 34
Table 10: Dairy Products Market in the US (2001-2005):
Exports in US$ Million by Category – Cheese, Whey,
Conditioned Milk & Butter, and Other Products 34
Milk 34
Table 11: Leading Players in the US Refrigerated Skim/Lowfat
Milk Market (2005): Percentage Breakdown of Value Sales for
McNeil Consumer Products, Dean Foods, Marigold Foods, Horizon
Organic, HP Hood, Prairie Farms Dairy, Garelick Farms,
Parmalat USA, Mayfield Dairy Farms, Private Label, and
Others 35
Table 12: Leading Skim and Low Fat Milk Brands in the US
(2006): Sales in US$ Million for Private Label, Lactaid 100,
Horizon Organic, Kemps, Dean's, Garelick Farms, Mayfield,
Prairie Farms, Organic Valley, Hood, and Others 35
Table 13: Leading Players in the US Refrigerated Whole Milk
Market (2005): Percentage Breakdown of Value Sales for Milk
Products, Oak Farms Dairy, Dean Foods, Horizon Organix,
Lehigh Valley Dairies, McNeil Consumer Products, Prairie
Farms Dairy, Garelick Farms, Parmalat USA, Private Label,
and Others 36
Table 14: Leading Whole Milk Brands/Vendors in the US
(2005): Percentage Breakdown of Sales through Food, Drug and
Mass Merchandise Stores for Dean Foods, Plains Creamery,
Quality Chekd Dairy Products Association, Tuscan Dairy Farms
(Suiza Foods), Ross Swiss Dairy (Suiza Foods), Garelick Farms
Inc. (Suiza Foods), Borden, Lehigh Valley Dairies (Suiza
Foods), Mayfield Dairy Farms (Dean Foods), Private Label, and
Others 36
Yogurt 37
Table 15: Leading Yogurt/Yogurt Drink Brands in the US
(2007): Sales in US$ Million for Private Label, Yoplait
Original, Yoplait Light, Dannon Light 'n Fit, Dannon Activia,
Stonyfield Farm, Yoplait Go-Gurt, Yoplait Trix, Dannon
Danimals, and Yoplait Whips 37
Table 16: Leading Yogurt/Yogurt Drinks Brands in the US
(2005): Sales in Million Units for Yoplait, Dannon, Private
Label, Kraft, Stonyfield Farm, Johanna Foods, Yofarm, Wells,
Colombo, and Meadow Gold 37
Flavored Milk 38
Table 17: Leading Players in the US Refrigerated Flavored
Milk Market (2005): Percentage Breakdown of Value Sales for
Nestle USA, Dean Foods, Marigold Foods, Morningstar Foods,
Milk Products, HP Hood, Mayfield Dairy Farms, Garelick Farms,
Prairie Farms Dairy, Private Label, and Others 38
Cheese 38
Table 18: Leading Brands in the US Natural Cheese Market
(2004): Percentage Breakdown of Value Sales for Kraft,
Sargento, Tillamook, Crystal Farms, Sorrento, Precious,
Frigo, Polly-O, Borden, Private Label, and Others 38
Table 19: Leading Brands in the US Natural Cheese Market
(2004): Percentage Breakdown of Volume Sales for Kraft,
Sargento, Crystal Farms, Tillamook, Borden, Precious,
Sorrento, Frigo, Polly-O, Private Label, and Others 39
Table 20: Cheese Market in the US (2006): Production in
Billion Pounds by Type – American, Italian, and Others 39
Table 21: Cheese Market in the US: Percentage Breakdown of
Volume Sales by Type – Mozzarella, Cheddar, Parmesan, Swiss,
American, Cheddar & Monterey Jack blend, Provolone, Monterey
Jack, Blue, Feta, and Others 39
Table 22: Leading Cottage Cheese Brands in the US (2005):
Sales in US$ Million through Drug, Food, and Mass Merchandise
(excluding Wal-Mart) for Private Label, Breakstone, Knudsen,
Breakstone Cottage Doubles, Deans, Friendship, Hood, Prairie
Farms, Light N Lively, Hiland, and Others 40
Table 23: Leading Cottage Cheese Brands in the US (2005):
Sales in Million Units through Drug, Food, and Mass
Merchandise (excluding Wal-Mart) for Private Label,
Breakstone, Breakstone Cottage Doubles, Knudsen, Friendship,
Deans, Hood, Prairie Farms, Hiland, Light N Lively, and
Others 40
Table 24: Leading Individual Natural Sliced Cheese Brands in
the US (2006): Sales in US$ Million through Drug Stores,
Supermarkets, and Mass Merchandisers (excluding Wal-Mart) for
Private Label, Sargento, Kraft, Tillamook, Alpine Lace, Kraft
Deli Deluxe, Kraft Cracker Cuts, Sargento Deli Style, Kraft
Cracker Barrel Cracker Cuts, Kraft Deli Thin, and Others 40
Table 25: Leading Individual Natural Sliced Cheese Brands in
the US (2006): Sales in Million Units through Drug Stores,
Supermarkets, and Mass Merchandisers (excluding Wal-Mart) for
Private Label, Sargento, Kraft, Kraft Cracker Cuts, Kraft
Deli Deluxe, Tillamook, Sargento Deli Style, Alpine Lace,
Kraft Cracker Barrel Cracker Cuts, Kraft Deli Thin, and
Others 41
Table 26: Leading Natural Shredded Cheese Brands in the US
(2006): Sales in US$ Million through Drugstores, Food, and
Mass Merchandise (excluding Wal-Mart) for Private Label,
Kraft, Sargento, Crystal Farms, Borden, Kraft Free, Kraft
Classic Melts, Di Giorno, Sargento Bistro, Stella, and Others 41
Table 27: Leading Natural Shredded Cheese Brands in the US
(2006): Sales in Million Units through Drugstores, Food, and
Mass Merchandise (excluding Wal-Mart) for Private Label,
Kraft, Sargento, Crystal Farms, Borden, Kraft Free, Kraft
Classic Melts, Sargento Bistro, Di Giorno, Stella, and
Others 41
Table 28: Leading Refrigerated Sliced Natural Cheese Brands
in the US (2006): Sales in US$ Million through Drugstores,
Supermarkets, and Mass Merchandise (excluding Wal-Mart) for
Private Label, Sargento, Kraft, Tillamook, Alpine Lace,
Kraft Deli Deluxe, Kraft Cracker Cuts, Sargento Deli Style,
Kraft Cracker Barrel Cracker Cuts, Kraft Deli Thin, and
Others 42
Table 29: Leading Refrigerated Sliced Natural Cheese Brands
in the US (2006): Sales in Million Units through Drugstores,
Supermarkets, and Mass Merchandise (excluding Wal-Mart) for
Private Label, Sargento, Kraft, Kraft Cracker Cuts, Kraft
Deli Deluxe, Tillamook, Sargento Deli Style, Alpine Lace,
Kraft Cracker Barrel Cracker Cuts, Kraft Deli Thin, and
Others 42
Fluid Milk 43
Table 30: Refrigerated Dairy Products Market in the US (2005 &
2006): Sales in Billion Units through Supermarkets by
Category – Milk, Natural Cheese, Yogurt / Yogurt Drinks,
Butter, Margarine / Spreads / Butter Blends, Cottage Cheese,
Cream Cheese / Spreads, Sour Cream, and Dips 43
Table 31: Leading Players in the US Dairy Products Market
(2005): Percentage Breakdown of Sales for Dean Foods, Kraft
Foods, Dairy Farmers of America, Nestlé USA, Private Label,
and Others 43
1b. Canada 44
Dairy Industry Outlook 44
Table 32: Dairy Products Market in Canada (2004): Production
in ‘000 Kilograms by Category – Specialty Cheeses, Yogurt,
Cheddar, Mozzarella, Skim Milk Powder, Butter, Evaporated
Whole Milk, Cottage Cheese, Whey Powder, Evaporated Skim
Milk, and Evaporated Partly Skimmed Milk 44
Exports 44
Table 33: Dairy Products Market in Canada (2004): Exports in
Volume (in Metric Tons) and Value (in US$ Million) by Select
Country – USA, South Korea, China, Kuwait, Mexico, UK,
Taiwan, Trinidad & Tobago, Japan, and Cuba 45
Imports 45
Table 34: Dairy Products Market in Canada (2004): Imports in
Volume (in Metric Tons) and Value (in US$ Million) by
Select Country – USA, New Zealand, Germany, France,
Netherlands, Italy, and Denmark 46
Distribution 46
The Regulations 46
The National Dairy Policy 46
Provincial Responsibilities 46
Technology and Innovation 47
2. Japan 47
Market Review 47
Table 35: Japanese Market for Dairy Products by Product
Segment – Fluid Milk, Milk Powder, Butter, Cheese, Ice Cream
and Related Products, Yogurt and Related Products, and Cream
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2003 through 2008 47
Consolidated Trends of Dairy Industry 48
Role of Private Labels 48
The Retail Sector 48
Table 36: Dairy Product Market in Japan (2004): Percentage
Breakdown of Sales through Outlet Type – Multiple Grocers,
Convenience Stores, Independent Food Stores, and Others 48
Regulatory Environment 48
Major Players 49
Table 37: Leading Players in the Japanese Butter Market
(2005): Percentage Breakdown of Value Shipments for Snow
Milk Products, Yotsuba Milk Products, Meiji Milk Products,
Morinaga Milk Industry, and Others 49
Table 38: Leading Players in the Japanese Cheese Market
(2005): Percentage Breakdown of Value Shipments for Snow
Brand Milk Products, Morinaga Milk Industry, Rokko Butter,
Meiji Milk Products, and Others 49
3. Europe 50
Overview 50
Dairy Products Market 50
Table 39: European Market for Dairy Products by Geographic
Region – France, Germany, UK, Italy, Spain, Russia, and Rest
of Europe Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2003 through 2008 50
Eastern Europe 51
Poland – A Major Central European Market for Dairy Products 51
Western European Companies Lead the Pack 51
Bio-Security – Need of the Hour 51
Table 40: European Union Market for Dairy Products by Product
Segment – Butter, Cheese, Condensed Milk, Low-Fat Milk
Powder, and Full-Cream Milk Powder Independently Analyzed
with Annual Consumption Figures in ‘000 Metric Tons for
Years 2003 through 2008 52
Regulatory Environment 52
Labeling Issues 52
CAP Reforms 52
3a. Czech Republic 53
Competition Intensifies in the Mature Market 53
Consumption 53
Table 41: Dairy Products Market in Czech Republic (2005): Per
Capita Consumption of Milk, Cheese, and Butter 53
3b. France 53
Overview 53
Dairy Products Consumption: Affected by Changing Food Habits 53
Table 42: French Market for Dairy Products by Product Segment –
Fluid Milk, Milk Powder, Butter, Cheese, Ice Cream and
Related Products, Yogurt and Related Products, and Cream
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2003 through 2008 54
Market Snapshots 54
Table 43: Dairy Products Market in France (2004): Percentage
Breakdown of Sales by Outlet Type – Supermarkets/
Hypermarkets, Discounters, Convenience Stores, Traditional
Grocers, and Others 55
French Dairy Goes the Organic Way 55
Milk Sales 55
Import and Export Scenario 55
Market Leaders 55
Table 44: Leading Players in the French Cheese Market (2005):
Percentage Breakdown of Value Sales for Groupe Lactalis,
Bongrain, Fromageries Bel, Private Label, and Others 56
Table 45: Leading Players in the French Yogurt Market
(2005): Percentage Breakdown of Value Sales for Groupe
Danone, Sodiaal, Nestle S.A., Private Label, and Others 56
3c. Germany 56
Overview 56
Market Analysis 56
Dairy Products – Potential German Market 56
Baby Milk 56
Cheese Products 57
Sales and Production 57
Table 46: German Market for Dairy Products by Product
Segment – Fluid Milk, Milk Powder, Butter, Cheese, Ice
Cream and Related Products, Yogurt and Related Products,
and Cream Independently Analyzed with Annual Sales Figures
in US$ Million for Years 2003 through 2008 57
Table 47: Dairy Products Market in Germany (2006):
Production in Million Metric Tons by Product Segment –
Drinking Milk, Yogurt, Cheese, and Butter 57
Consumption Rate of Dairy Products 58
Table 48: German Market for Dairy Products by Product
Segment – Butter, Cheese, Condensed Milk, Low-Fat Milk,
and Full-Cream Powdered Milk Independently Analyzed with
Annual Consumption Figures in Thousand Metric Tons for
Years 2003 through 2008 58
Table 49: Dairy Products Market in Germany (2005): Per
Capita Consumption in Kilograms/Head by Category –
Drinking Milk; Fresh Milk-Based Products (Yogurt and
Others); Cream, Cream Products; Butter; Cheese (Hard,
Soft, Sliced Cheese; Quark, Cream Cheese; Cheese Spread;
and Others); and Powdered Milk 58
Table 50: Dairy Products Market in Germany (2006):
Processing in Million Metric Tons by Category – Drinking
Milk, Cheese, Yogurt, and Condensed Milk 59
Leading Players 59
Table 51: Leading Players in the German Cheese Market
(2005): Percentage Breakdown of Value Sales for Kraft
Foods, Unilever, Bayerland, Hochland, Fromageries Bel, and
Others 59
Table 52: Leading Players in the German Yogurt Market
(2005): Percentage Breakdown of Value Sales for Ehrmann,
Campina Melkunie, Nestle S.A., Private Label, and Others 59
3d. Italy 60
Overview 60
Consumer Tendencies 60
Market Trends 60
3e. Russia 61
Overview 61
Multinationals Eye on Russian Dairy Market 61
Table 53: Dairy Products Market in Russia (2006): Production
in Kilo Tons by Product Segment – Butter, Margarine, Canned
Dairy, Cheese, Baby Food, and Milk Powder 61
3f. Spain 62
Overview 62
Market Highlights 62
Corporate Activity in the Dairy Market 62
Market Conditions 62
Market Leaders 63
Table 54: Leading Players in Spanish Milk Market (2005):
Percentage Breakdown of Value Sales for Grupo Leche Pascual
S.A., CAPSA, Puleva, Private Label, and Others 63
3g. Sweden 63
Flourishing Dairy Market 63
Table 55: Swedish Market for Drinking Milk Analyzed with
Annual Consumption Figures in Thousand Tons for Years 2003
through 2008 64
Table 56: Dairy Products Market in Sweden (2005): Consumption
of Drinking Milk Per Person in Kilograms 64
3h. Switzerland 64
Swiss Dairy Market Highlights 64
3i. The Netherlands 65
Overview 65
Fresh Dairy Product Consumption Decreases Marginally 65
Market Leaders 65
3j. The United Kingdom 65
Overview 65
Table 57: UK Market for Dairy Products by Product Segment –
Fluid Milk, Milk Powder, Butter, Cheese, Ice Cream and
Related Products, Yogurt and Related Products, and Cream
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2003 through 2008 66
Key Market Trends 66
Consolidation Enhances Manufacturers’ Bargaining Power 66
Functional Yogurt Gains Ground 66
Organic Trend Catches On 66
Probiotic Cheese Sparks Up the UK Cheese Market 67
Market Conditions 67
Table 58: Cheese Market in the UK (2006): Percentage
Breakdown of Value Sales by Product Category – Cheddar,
Continental (excluding Blue), Total Processed, Territorials
(excluding Blue), Total Soft White, Total Blue, and Mini
Portions 68
Leading Brands 68
Table 59: Leading Milk Drink Brands in the UK (2006): Sales
in £ ‘000 for Galaxy, Frijj, Yazoo, Mars, and Superlife 68
Table 60: Leading Cheese Brands in the UK (2006): Sales in £
‘000 for Dairylea, Cathedral City, Philadelphia, Cheestrings,
Seriously Strong, Pilgrims Choice, Baby Bel, Laughing Cow,
Wyke, and Anchor 68
Table 61: Leading Ice Cream (Tubs) Brands in the UK (2006):
Percentage Breakdown of Value Sales for Carte d'Of, Wall's,
Ben & Jerry's, Haagen-Dazs, Mackies, Whole Earth, Kelly's of
Bodmin, Richmond, Hill Station, Frederick's Dairies, and
Others 69
4. Asia-Pacific 69
4a. Australia 69
Overview 69
Table 62: Australia Dairy Products Market (2000-2005): Milk
Production in Million Liters 70
Table 63: Cheese Market in Australia (2004 & 2005):
Production in Tons by Product Type – Cheddar, Semi-Hard,
Fresh, Hard-Grating, and Mould 70
Australian Dairy Exports 70
Table 64: Dairy Market in Australia (2003-04, 2007-08, &
2011-12): Exports in A$Million by Select Product – Cheese,
Skim Milk Powder, Whole Milk Powder, and Butter 71
Table 65: Dairy Products Market in Australia (2005-2006):
Exports in Tons by Select Country – Japan, Singapore,
Malaysia, Philippines, Indonesia, Thailand, Saudi Arabia,
Taiwan, USA, and Hong Kong 71
Table 66: Dairy Products Market in Australia (2005-2006):
Exports in A$ Million by Select Country – Japan, Malaysia,
Indonesia, Singapore, Philippines, Saudi Arabia, USA,
Thailand, Taiwan, and Korea 72
Table 67: Dairy Products Market in Australia (2004 & 2005):
Per Capita Consumption by Product Category – Milk, Yogurt,
Butter/Blends, and Cheese 72
Table 68: Dairy Products Market in Australia (2004 & 2005):
Drinking Milk Sales in Million Liters by Type – Regular,
Reduced, Flavored, Low Fat, and UHT 73
Market Conditions 73
Water Scarcity Decreases Australia’s Milk Production 73
Outlook 73
4b. New Zealand 74
Overview 74
5. Asia 74
Overview 74
Children Remain Target Consumers in Most Countries 74
Dairy Products Consumption 74
Cheese Demand Soaring in South Korea 74
5a. China 75
Overview 75
Growth Factors 75
Market Conditions 75
Table 69: Dairy Market in China (2005): Percentage Breakdown
of Sales by Segment – Milk Powder Milk, Soy Milk, Yoghurt,
Chilled Desserts, and Others 76
Growth Projections 76
Outlook 76
5b. India 76
Overview 76
Market Size 77
Leading Players 77
5c. Indonesia 77
Overview 77
Table 70: Indonesian Market for Dairy Products Analyzed with
Annual Consumption Figures in Kilotons for Years 2003
through 2008 77
Market Trends 78
Table 71: Milk Market in Indonesia (2006): Production in
Kilotons by Category – Sweetened Milk, Powdered Milk, and
Liquid Milk 78
Fresh Milk 78
Table 72: Indonesian Milk Processing Industry’s Utilization
of Domestically Produced Fresh Milk: Annual Production
Figures in Kilotons for Years 2003 through 2008 78
6. Middle East 79
6a. Israel 79
Overview 79
6b. Saudi Arabia 80
Overview 80
6c. UAE 80
Overview 80
Table 73: UAE Market for Dairy Products (Liquid Milk
Equivalent) by Category – Milk, Fermented Products, Cream,
Concentrated Milks, Retail Milk Powder, Retail Butter Fats,
Cheese, and Ice Cream 81
7. Latin America 81
Overview 81
7a. Brazil 82
7b. Chile 82
GLOBAL DIRECTORY
