August 19, 2024 – Milk is a staple beverage in Europe due to its reputation as rich source of vitamins and minerals, such as calcium and protein, which support overall health and wellness. Innova’s 360 research into milk trends reveals the latest product launches, top flavors, and claims, paving the way for brands to make strategic decisions in the category.
Milk Product Launch and Sales Trends
Europe is the second leading region for milk launches and sales over the past year, after Asia Pacific. Children friendly launches featuring movies and Disney cartoon characters in the pack labels, seasonal and Christmas editions captivate consumer attention in the European milk market.
There has been significant growth in milk launches over the past three years in Europe. This growth is driven by preparations with added milk protein and a clear declaration of protein content on the packaging, such as 10g, 25g, 28g, 35g, and 50g.
Leading Milk Markets in Europe
Unflavored milk is the top subcategory in milk launches, followed by flavored milk. The top five European markets for milk launches are Spain, United Kingdom, Italy, Germany, and France. Among these, Italy shows the fastest growth, with a 38% CAGR over the past four years. In Italy, UHT treated choices, highly digestible lactose free milk, microfiltered milk with removed biological impurities for improved shelf life, and flavored milk drinks drive product development.
The United Kingdom leads in milk sales within Europe, followed by Germany and Spain. Milk trends research shows that Spain is the fastest growing country in sales, with a 4% CAGR over the past three years. The country’s new product development focuses on protein dense ranges and better-for-you choices fortified with vitamins and minerals, such as vitamin D for bone health and vitamin B12 to reduce fatigue. Brown flavors and fruit flavored selections also appeal to consumers.
Flavored Milk Trends
In the past three years, the launch rates of flavored milk have fluctuated, with a slight increase in 2023. Variety in textures, indulgent and diverse flavor blends like hazelnut and milk chocolate, caramel and milk chocolate, red raspberry, and white chocolate, coffee, and cocoa support these launches.
Mueller Dairy leads in flavored milk launches in Europe, offering milk drinks in cross category flavors such as choco caramel cookie, cookies and cream, fudge brownie, black forest cherry cake, strawberry cheesecake, and cookie dough. This highlights the demand for innovative and indulgent flavor combinations in the milk market.
Unflavored Milk Trends
Over the past year, there has been a 1% rise in unflavored milk launches in Europe. Launches highlight the indigenous origins of milk, such as British, Italian, Irish, Gruyère, and Bulgarian. Fresh goat milk, skimmed milk powders, nutrient enriched selections, and options for coffee, cappuccino, tea, and breakfast cereals drive new product development.
Aldi is the top company for unflavored milk launches in Europe, driven by whole milk containing 3.5% to 3.8% fat, UHT/ESL homogenized milk, and fortified ranges with vitamins A, B, E, and D. This underscores the significance of quality and nutritional value in unflavored milk.
Claims and Positionings Trends in the Milk Market
Source of protein is the top claim, followed by lactose free, low/no/reduced fat, vegetarian, and organic.
Milk trends research displays different claim preferences across Europe. In the United Kingdom, bone health, vitamin/mineral fortified, indulgent and premium claims are on the rise. Spain consumers are inclined towards vitamin/mineral fortified, added calcium, and bone health claims. In Germany, limited edition, no added sugar, and GMO free claims are growing. Consumers in Italy prefer oral health, bone health, and no additives or preservatives claims. Meanwhile, in France, no additives or preservatives, children (5-12 years), vitamin/mineral fortified claims are gaining popularity.
Flavor Trends
Milk chocolate, cocoa, strawberry, vanilla, and banana are the top 5 flavors in the European milk market. Apart from these top 5 flavors, red raspberry, caramel, salted caramel, coconut, and white chocolate flavors are also growing in the space. This diversity in flavors indicates a consumer preference for both traditional and novel taste experiences, driving innovation and expanding the European milk market.
What’s Next in the Milk Trends?
The European milk market is evolving rapidly, with Italy witnessing the fastest growth in launches. This presents several opportunities for brands to innovate and expand their offerings. Milk trends research shows that 35% of consumers in Europe consider protein as an important ingredient, leading to a 7% rise in the source of protein claims in milk over the past four years. Brands can capitalize on this trend by launching products with added milk protein and highlighting protein content on packaging.
Consumer preferences for indulgent and fruit flavors are driving market growth and diversification in Europe. Brands can develop cross-category flavor innovations such as choco caramel cookie, cookies and cream, and fudge brownie options. Thus, future product innovations are likely to focus on combining health benefits with indulgent flavors, catering to both health-conscious and flavor-seeking consumers.
This article is based on our report, “Overview of Milk in Europe.” If you are interested in reading this report, feel free to request a demo.
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