UK Market for Value-Added Milk, The

British dairies are increasingly targeting the value-added milk for growth opportunities as they re-align their businesses and move away from commodity products. New product launches and increased investment are factors behind sales to expand by about 30% a year.

This new report by Organic Monitor analyses the organic milk, functional milk, and flavoured milk segments. Although organic milk and flavoured milk comprise most revenues, the functional milk market is showing the highest percentage growth. Functional milk sales escalated in 2005 due to the successful launch of Saint Ivel Advance. Marketed as 'clever milk', the milk is fortified with omega acids from fish oil.

Organic milk comprises most revenues in the value-added milk market. Sales have been soaring since scientific research found organic milk to have superior nutrient content than non-organic milk. Some retailers have reported sales growth in excess of 50% in 2005 as consumers increasingly buy organic milk because of its health benefits.

Of all the product segments, flavoured milk has the highest retail penetration. Fresh flavoured milk sales are expanding as retailers launch new products under their private labels. Expanding sales channels is also a major driver as manufacturers target the catering & foodservice sector.

High growth rates are attracting new entrants into the value-added milk market. Apart from British dairies, large food companies like Nestl and Unilever are coming into the market because of the growth potential and low barriers to market entry. The organic milk market is receiving low interest however because of supply-demand imbalances. Supply shortages is causing organic milk to be imported once again after years of oversupply.

This report gives market & competitive information on the value-added milk market. Market sizes, revenue forecasts, and market trends are given for each product segment. Competitive information includes market shares and profiles of leading producers and retailers.