Organic Dairy Sector Sees Recovery with Surge in Yogurt

United Kingdom (UK) 24.09.2024

Source: DairyNews.today

The premium organic red meat and dairy sectors are beginning to recover, with growing consumer interest in organic dairy products, particularly in yogurt and spreads, providing a glimmer of hope for the industry. Research from Two Ears One Mouth reveals that 71% of consumers remain concerned about the cost of living (COL) crisis, but this is a 15% drop compared to August 2023.

Organic Dairy Sector Sees Recovery with Surge in Yogurt

According to the Agriculture and Horticulture Development Board (AHDB), sales of organic cow’s milk grew by nearly 4% in the 12 weeks leading up to May 18, 2024, and further increased by 5% in the 12 weeks up to July 13, indicating a strong demand for organic milk as non-organic milk sales decline. Despite these gains, organic milk still represents only 3% of overall dairy volumes.

The yogurt category is leading the way, accounting for 8% of organic dairy product sales. Organic yogurt experienced a 2.0% volume growth without price reductions, unlike its non-organic counterpart. Meanwhile, the organic butter, spreads, and margarine (BSM) segment saw double-digit growth, with price reductions of 11.5% making it more accessible to consumers.

In contrast, organic cheese sales remain stable, rising 2.9% year-on-year, while organic cream has struggled, with volumes down by 7.0% over the same period.