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Dairy market slows down as growth of butter eases



Dairy market slows down as growth of butter eases

Growth in the dairy market in the 12 weeks to 17 June slowed down to 3.8% from 4.5% in the previous period. Despite this slowdown the market is still growing faster than the overall grocery market and fresh and chilled, which decreased down to 2.2% and 2.6% respectively.

The sector driving the decline is butter, accounting for £10.5 million of the £18.25 million less spent on dairy year on year. Behind this was milk, with growth down by £4.4 million, and margarine at £2.1 million.

Commenting on the findings, Oliver Bluring, Client Executive, Kantar Worldpanel, said: “The retailer which has seen the steepest decline in butter is Tesco, having gone from £4.1 million growth in the previous 12 weeks to losses of £1.6million. The Co-Op saw the next biggest drop off, losing out on £1 million of spend. This is echoed when you look at the performance of these retailers in dairy overall, where Tesco sees a fall of nearly £15 million and the Co-Op £3.3 million. Additionally, Ocado saw an easing of £1 million, a proportionally greater amount to the smaller online retailer”.

This slowdown in dairy comes through all life stages, though retired shoppers drive a considerable amount of the losses. When we look at social demographic groups, shoppers in lower-middle class and non-working families especially drive decline.

The fall back in butter sales have come through a mixture of both non-promoted lines and those being sold through the Y for £X mechanism. As temporary price reduction sales remain in marginal growth. When you look at the overall dairy market, the decline comes through all promotional mechanisms, though Y for £X more so than the others. 

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Client Executive - Dairy

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