Snacking drives dairy market growth in Canada

The Canadian dairy market is expanding and is expected to be worth US$13.9 billion (€10bn) by 2018. According to market researchers Canadean, product development focusing on more healthy, varied and convenient products will support the dairy market growth in Canada.

Canadian consumers are seeking dairy products with added health benefits as health becomes a salient issue; obesity levels are rising, as is the risk of associated conditions like diabetes. This offers an opportunity for Dairy marketers. Following the trend, the Canadian Dairy Farmers association recently launched the ‘Get Enough’ campaign promoting the importance of dairy products as part of a balanced diet and stressing their nutritional content.

Meanwhile, meal times are becoming more fragmented with consumers skipping traditional meals in place of more frequent snacks. With an increase in snacking occasions and health focused consumers, dairy manufacturers are well placed to provide consumers with convenient nutrition. The growing demand for on-the-go products resulted in the development of healthy snacks such as individual portions of cheese, single serve bottles of flavoured milk, and yogurts.

Despite the need for healthy products, the desire to treat oneself is an important trend in snacking, meaning that consumers will continue to seek taste and escapism despite the focus on healthy lifestyles. Kirsty Nolan, Canadean analyst says “New products to the dairy market must combine healthy attributes like added protein and calcium with indulgent factors like a great taste and luxurious image.”

Because it offers varied and healthy options, yogurt is the fastest growing Canadian dairy market category with an expected compound annual growth rate of 5.8% from 2013 to 2018. Yogurts suit the trend for eating smaller quantities more often; they are an ideal snacking alternative to the traditional unhealthy options of chocolate bars and crisps. For instance, General Mills’ yogurt brand Yoplait developed various product such as its strawberry cheesecake Greek yogurt. The rich yogurt contains real fruit in a creamy texture but is low in calories and offers added benefits such as milk protein.

A fast growing market, space for competition and a rising purchasing power will encourage the introduction of new products. The yogurt category is set to increase its share of the dairy market by 2.3% by 2018.

For more information please visitwww.canadean.com