Dairy Product Spending in Great Britain Rises Despite Volume Decline

Analysis from the Agricultural and Horticultural Development Board (AHDB) reveals that spending on cow dairy products in Great Britain has risen by 6% year-on-year, driven primarily by a 7.3% increase in average prices. The data, sourced from NielsenIQ Homescan, indicates that in the year leading up to October 4, 2023, the overall volume of dairy products declined by 1.2%.

Milk volume specifically saw a 2.7% decrease year-on-year, although spending on milk increased by 1.1%, attributed to a 3.9% rise in average prices. Elisya Zain, a retail and consumer insight analyst with AHDB, noted that while semi-skimmed and skimmed milk volumes decreased, other cow's milk types and whole milk experienced a 2.3% growth in volume, reaching 26.5 million litres.

Cheese remained in volume growth, registering a 1.6% increase, with spending up 5.3%. Cheddar, which constitutes 45.2% of all cow cheese volumes, saw a slight volume increase of 0.1%. Other cheese categories, including snacking, specialty, and continental varieties, also posted growth, with cottage cheese leading within the other cow's cheese sector.

In contrast, butter volumes decreased by 2.3%, but spending surged by 9.5% due to a 12.1% rise in average prices. Yoghurt, yoghurt drinks, and fromage frais continued to experience volume growth, increasing by 6.3%, driven by more shoppers and higher purchase volumes per buyer.