Significant Growth Anticipated For UK Dairy Market
UK - According to Dairy Markets, the UK dairy market is forecast to grow by 43 per cent to €14.6 billion by 2014 from the results of a recent report compiled by Datamonitor. The categories such as cheese, spreadable fats and the chilled desserts are expected to enjoy the strongest growth.
4 July 2011
1 minute read
The largest segment of the dairy market, liquid milk, is expected to grow by 31 per cent to €5.3 billion. However, the strongest growth is forecast for categories that are perceived as healthier and convenient. This is evident in the forecast for the cheese category from 2009 to 2014. Datamonitor estimate compound annual growth rate (CAGR) of 11.2 per cent for cheese sales to reach almost €4.3 billion or an increase of 73 per cent in the value of the market, reflecting a 45 per cent increase in cheese consumption to 530,000 tonnes during this period.
Within the dairy market, the spreadable fats category should continue to benefit from consumers switching from butter, which reflects the changing mindset of consumers. This market is expected to grow by 50 per cent to €1.7 billion. Another category expected to show strong growth is the chilled desserts category, at 8.3 per cent CAGR to €932 million. Elsewhere, the value of the yoghurt market is expected to increase by 28 per cent to €1.64 billion.
Considering that UK output is relatively constrained by quotas, the growth in the UK dairy market represents an opportunity for the Irish dairy industry to increase exports. In 2010, Irish exports to the UK were in the region to €777 million. Cheese sales accounted for 41 per cent of total exports to the UK.
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