Innova Market Insights: Greek Yogurt NPD Activity Accelerates on Health Qualities

The current trend probably started in North America and has almost certainly had the most effect on the overall yogurt sector there. Launches of Greek and Greek-style products incredibly made up 29% of US yogurt launches recorded in the 12 months to the end of June 2012.

15 Oct 2012 --- Greek yogurt continues to be a key area of activity in the fresh dairy market. Nearly 8% of the total yogurt launches recorded globally by Innova Market Insights (www.innovadatabase.com) in the 12 months to the end of June 2012, were positioned as Greek or Greek-style options. This was up from less than 2% five years previously, with actual launch numbers rising more than fivefold over that period.

The current trend probably started in North America and has almost certainly had the most effect on the overall yogurt sector there. Launches of Greek and Greek-style products incredibly made up 29% of US yogurt launches recorded in the 12 months to the end of June 2012. This compared with more modest but still significant levels of over 15% in Australasia and nearly 10% in Western Europe. Continuing growth for the product has been attributed to its inherent health qualities, combined with its thick and creamy taste.

As competition has increased, the market has seen an increasing range of formats and flavor options. Products tend to be probiotic and to come in a range of fat contents, commonly featuring wholemilk, 2% fat and 0% fat variants. Traditional plain and honey variants have also been joined by a whole range of fruit and other options, including lines giving an American spin with the use of US-style flavors, such as blueberry and key lime pie.

The market was pioneered by Fage with its Total range, available in many international markets as well as its Greek homeland. But there have been many market entrants, both branded and own-label, as well as rising levels of new product activity. In the US, for example, the market is now led by Chobani, but it faces strong competition from Greek brands from established yogurt market leaders, including Dannon’s Oikos and General Mill’s Yoplait Greek, as well as Greek options in many existing ranges. Most recently, Yoplait Greek has been extended with the introduction of a fat-free 100-calorie option under the Yoplait Greek 100 name.

The Chobani brand, having found such success in the US, arrived in the UK in the autumn of 2012, positioned as a fat-free Greek yogurt. This closely followed the launch of fat-free Greek Style yogurts under the WeightWatchers brand. Also due to follow later in 2012 is another range from the US, with Hain Daniels set to introduce its Greek Gods brand, positioned as an indulgent premium dessert. As might be expected in the UK, retailer brands are also highly active.

Inevitably, the success of Greek yogurts has led to interest moving to other sectors of the market, most notably to frozen yogurt. In the US, with its highly developed frozen yoghurt market, Greek-style launches have increased markedly over the past few months and have included some well known brands, including a frozen version of the Stonyfield Oikos organic brand from Dannon, Greek-style frozen yogurt products from premium ice cream specialist Ben & Jerry’s and, most recently, as part of Yoplait’s first US frozen yogurt range, which includes both Original and Greek-Style options.

Lu Ann Williams, Research Manager at Innova Market Insights believes that despite rapid growth and increasing maturity, there is still further capacity for development in Greek yoghurt internationally. “The healthy yet indulgent image of the products,” she contends, “offers consumers an affordable everyday treat option, with the additional bonus of a healthy, natural image.”