On this version of the FNA Deep Dive, we take a better have a look at these, and discover out simply what types of improvements regional yoghurt companies are concentrating on to reply to shopper tendencies and keep relevance.
In APAC, the worth of the yoghurt market worth is anticipated to hit US$9bn by 2023 with a CAGR of three.48%, significantly pushed by shopper calls for for more healthy meals merchandise.
Yoghurt dates again many millennia, with some analysis estimating its origins way back to the Neolithic interval, so the this sector’s resilience could be seen in its continued progress – however companies within the business imagine that steady innovation is extra vital than ever at this time as a way to stay related and proceed this progress pattern.
One in all these is Brownes Dairy, Australia’s oldest dairy firm which was established in 1886.
“[We are aware we need to] consistently innovate to remain related [despite] being the oldest dairy firm in Australia,” Brownes Meals Operations Senior Advertising Supervisor Nicole Ohm instructed FoodNavigator-Asia.
“One of many methods we’ve taken to make yoghurt extra attention-grabbing is to borrow tendencies from confectionery – so in addition to standard flavours like vanilla and strawberry, Brownes additionally has thrilling ones like tutti fruity, bubble gum, and marshmallow.
“[Keeping things exciting] is very vital on the subject of catering to children [to get them interested] in a wholesome product like yoghurt, so we’ve tailor-made our vary in order that thrilling flavours are discovered within the yoghurt pouches focusing on youngsters.”
Along with this, Brownes Dairy additionally has different attention-grabbing like its kombucha yoghurt vary launched final 12 months, which makes use of the tradition in kombucha and the fermented tea base and consists of flavours like ginger, lemon, hibiscus and mango.
Watch the video beneath to seek out out extra about how Brownes Dairy is innovating in its yoghurt line.
Codecs and consumption events
One in all APAC’s hottest yoghurt manufacturers Chobani believes that conventional fruit flavours are vital, but in addition customers are on the lookout for extra because the consumption event of yoghurt evolves.
“Conventional fruit flavours have all the time been adored by yoghurt lovers. Lots of the fruit flavours we ranged when Chobani Australia first launched are nonetheless a few of our most liked – similar to Mango, Passionfruit and Strawberry.” Chobani Australia Managing Director Lyn Radford instructed us.
“With the launch of our Chobani Flip vary, we additionally began focusing on fully totally different events for yogurt [and more flavours come in to play here. For instance, many consumers still eat yoghurt] for breakfast, however a lot additionally wish to take pleasure in a day or late-night deal with with flavours similar to Cookies and Cream.
“Whether it’s breakfast, a snack or a candy deal with, [yoghurt is versatile, and we bring this to consumers] not solely via our vary of flavours but in addition the varied codecs wherein it’s accessible – Our pouches supply a handy on-the-go selection, whereas our massive tubs present a multi-serve choice.”
COVID-19 has additionally had a notable influence on the recognition of yoghurt codecs – based on Radford, in Australia handy, on-the-go pouches had been ‘positively profitable’ previous to the onset of the pandemic, however after it hit and most customers began staying residence, there was a move towards multi-serve yoghurt tubs.
“[Beyond the conventional flavours, formats and experiences], at Chobani we push the boundaries of innovation [and] go the extra mile, such as with our limited batch products,” Radford added.
We launched our first limited batch for three weeks in October 2016 with a Halloween-themed Pumpkin Pie flavour and since then, we have also featured a Mandarin Chinese New Year pot, Spooky Vanilla pouch, Christmas Pavlova Flip, [Unicorn Flip], Easter Hot Cross Bun Flip and Santa’s Milk and Cookies Flip.”
India’s Epigamia believes that the principle distinction for various yoghurt codecs similar to these offered in pots and drinkable yoghurt may be very a lot the consumption event.
“Yoghurt offered in pots and drinkable yoghurt have a really totally different worth proposition – the previous is normally consumed as a snack, whereas the consumption level for drinkable yogurt is usually on-the-go,” Epigamia CEO Rohan Mirchandani instructed us.
“So each have their very own distinctive consumption event, however from what we’ve noticed, progress has been roughly the identical for each sectors.”
Yoghurt as a more healthy meals
One of many major drivers of APAC yoghurt demand is its well being advantages, which usually embody high-calcium, high-protein, intestine well being and a variety of others – and based on Ohm, it’s an vital automobile for this because it manages to style good whereas offering these advantages.
“There’s nothing like yoghurt, as a result of yoghurt combines two issues which might be fairly uncommon to seek out in meals, that’s well being and pleasure. Most meals you commerce off one for the opposite, particularly on the subject of snack meals,” she stated.
“However yoghurt is more healthy than ice cream, tastier than milk, and extra reasonably priced than a protein bar. [That’s why] it’s typically known as the ‘good face of dairy’, for its perceived useful advantages, similar to reside cultures and probiotics.
“Yoghurt can be much less linked to damaging associations in dairy – we did some shopper analysis on milk not too long ago [and] there have been quite a lot of feelings about farmers not getting paid sufficient for the animals being taken care of, not sustainable for the planet, giving an upset tummy, and so forth. – However after we did the identical analysis with yoghurt, none of these issues had been talked about.”
Epigamia believes that the well being advantages yoghurt can confer are significantly precious for these on a vegetarian eating regimen.
“[I’d say] yoghurt is a considerably good supply of protein and probiotics [for consumers] in India as an addition to the common eating regimen, particularly for vegetarians [which make up a lot of the population],” stated Mirchandani.
Chobani is concentrated on the high-protein side, having two ranges devoted to this: FiT and Match X. The FiT line boasts 15g of protein per serve and extra frequent flavours like vanilla and blueberry, whereas FitX has 13g of protein and is available in extra ‘decadent’ flavours like mint chocolate and rocky highway. Each don’t have any added sugar.
“We launched FiT in 2018 after which FiT X the next 12 months – the latter was very a lot focused at these 3pm candy cravings and likewise offers nice alternative for scrumptious flavour improvements – current additions together with FiT X Rocky Street Rumble and FiT X Salted Caramel Craze” stated Radford.
The Match X vary incorporates elements with extra texture, similar to soy crisps, chocolate bits, or cookies relying on the flavour.
Inside APAC, the evolution of yoghurt has been totally different for various international locations – in India for instance, till not too long ago yoghurt was largely thought-about a facet dish alongside major meals to assist in digestion, and home-made yoghurt was much more prominent in the market than packaged products.
Today, packaged branded yoghurt is becoming more mainstream, although the traditional consumption occasion as a side dish still persists.
“In India, homemade curd continues to be a popular side consumption dish and packaged yogurt is mostly consumed as a ‘mid-meal snack’,” said Mirchandani.
“[That said], now that one-third of the population is working from home, we’ve noticed that most of our consumers consume [our yoghurts] either as a snack or as a dessert.”
In Malaysia, one clear divide that has emerged is within the subject of drinkable yoghurt – based on native agency YourGutBB Co-Founder Wilson Ang, there’s a distinction between ‘consuming yoghurt’ and ‘yoghurt drinks’, the place the previous is 100% yoghurt in a drinkable format, however the latter solely incorporates 30% yoghurt.
“Nearly two-thirds of Malaysians have IBS or related intestine points, with or with out their consciousness, [and] I actually first created YourGutBB consuming yoghurts to take care of my very own Irritable Bowel Syndrome (IBS),” he instructed us.
“Individuals who eat yoghurt repeatedly in Malaysia are normally well being acutely aware. Some folks take it as a supply of calcium, [but] for most individuals, yoghurt remains to be a luxurious meals, taken for leisure, and after they do drink, its normally the fruity flavours.”
“[This is] not like developed markets like Japan the place folks eat yoghurt repeatedly as a useful meals, [but we hope to] be the primary to provoke this consuming sample in Malaysia.”
YourgutBB operates ‘manufacturing studios’ versus business mass manufacturing, and has 5 of those studios throughout Malaysia to cater to nationwide demand, promoting over 1,000 bottles per 30 days.
Plant-based on the rise
The rise of the plant-based pattern has to date been most outstanding within the meat and milk areas – however a gentle rise is being seen in yoghurt too, which is definitely being taken rather more positively by conventional yoghurt companies.
“Plant-based is rising however nonetheless stays a small a part of the market. So far as we’re involved although, any innovation inside yoghurt is nice for all of us,” stated Ohm.
“Within the final 10 years, we went from eating regimen and low-fat yoghurt, pot set yoghurt, Greek yoghurt to excessive protein. Then, we had a pattern round Skyr (Icelandic) yogurt, kefir, and now plant-based yoghurts.
“[That said], I feel one of many key challenges with plant primarily based remains to be across the style, as nothing tastes as creamy in mouthfeel as dairy.”
As for Epigamia, the agency has lengthy positioned itself as each a dairy and plant-based agency, with Mirchandani beforehand describing to us how this has led to challenges by being considered as ‘the enemy’ by each side.
“We’ve had conventional dairy communicate out towards us as we’re ‘the plant-based guys’, then we’ve additionally had the plant-based activists communicate out towards us as a result of they assume we’re nonetheless the dairy guys,” he stated.
“We aren’t an activist model – we imagine it’s our job to ship nutritious, wholesome choices and let customers resolve what they really feel is the correct method to go about it, however not compelled any types of merchandise down their throats both manner. “
Both manner, aside from its portfolio of standard dairy merchandise, Epigamia additionally has a variety of plant-based coconut yoghurt and not too long ago launched its first almond milk merchandise too, so it’s clear the agency will not be backing away from the problem.
Even yoghurt large Chobani has its eye on getting into the plant-based area, having already launched its first plant-based oat milk in Australian foodservice with plans to develop a plant-based vary of merchandise additional down the road.
“Oat-based merchandise are more and more standard with customers as a result of they tackle frequent boundaries to buying non-dairy alternate options, together with sustainability, style and texture,” stated Radford.
“There may be loads of alternative for future improvements [in] the non-dairy class, although we’ll by no means abandon our dairy roots – yogurt is and all the time might be an vital a part of the Chobani story, however it’s solely the primary chapter.”