UK: Consumers trade down in dairy as costs continue to rise

Published 2023년 3월 21일

Tridge summary

The article highlights the impact of rising food prices on consumer behavior, with a focus on the dairy industry. It reveals that while 62% of consumers are concerned about food price increases, only 27% are reducing their dairy consumption due to cost. Instead, consumers are opting for cheaper dairy products. The shift towards private label products is particularly notable in the milk and yellow fats markets, with branded products experiencing declines. Cheese, especially cheddar and feta, is the dairy category that loses the least shoppers as prices rise. In cheddar, private label is growing while branded is declining, with a trend towards budget and premium private label. Yogurt sees a growth in private label over branded, with split pots and standard private label being the biggest winners.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

62% of consumers are concerned by the rising prices of food (Source: AHDB/Blue Marble Sept 2022) and price has grown in importance when choosing a dairy product, with 57% saying it has recently become more important (Source: AHDB/You Gov Nov 2023). While people are trying to save money, dairy is such a staple product that not many are choosing to reduce their dairy consumption for cost reasons (claimed by only 27% of dairy reducers compared to 54% of meat reducers). Rather they are choosing to save money by buying cheaper versions of the same products. Clearly brands may have a tougher time over the next year or two and processors will need to make investment decisions wisely, investing in parts of their portfolio that offer the biggest opportunities for growth or that are strategically important. Conversely, those supplying private label and retailers have a clear opportunity to capitalise on the trend towards trading down in replicating some of the more added value branded ...

Source: Ahdb