Australia: Non-dairy sales remain relatively small

Published Jun 2, 2023

Tridge summary

Dairy Australia's annual situation and outlook report reveals a decrease of 2.2% in the volume of dairy milks sold from the previous year, but a significant 10.9% increase in their value due to inflation. Despite a slight drop in cheese and dairy spread purchases, their take-home value rose. Yoghurt sales also increased by 1.8%, reaching a value of $1.277 million, up by 10.4%. Non-dairy products accounted for less than 10% of sales in the milk, cheese, and yoghurt categories. The report highlights that dairy products are providing more affordability for consumers in the face of economic challenges, while plant-based beverages are experiencing a decline due to their higher price points. Inflation is affecting both dairy and non-dairy products, with high affluence households reducing their purchases of these products. The report also notes a shift towards private label products and in-home consumption among lower income households to reduce costs.

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

Original content

While cost-of-living pressures have bitten into the volume of dairy milks sold domestically, their value has jumped by more than 10 per cent. In its annual situation and outlook report, Dairy Australia found while the volume of milks sold in the year to late March had fallen 2.2 per cent, their value had jumped by 10.9pc. "Inflation is still there, it's still raging on and it's changing the way people spend their money and the way people shop," Dairy Australia analyst Eliza Redfern told the organisation's annual Situation and Outlook breakfast, in Melbourne. "Affordability is very much the key driver of consumer purchasing behaviour - in the current market it's having a significant effect on sales volumes," she said. While cheese purchases fell slightly, year-on-year, by 1.8pc to 161 kilotonnes, the take home value rose by $2.7million or 9.1pc. Dairy spread purchases dipped by 3.9pc, to 59kt, while their value rose 8.8pc and yoghurt sales rose 174kt, or 1.8pc, to a value of ...

Source: Farmweekly