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Slowing butter growth puts the brakes on dairy market

08/05/2018

Growth of the dairy market eased once again in the latest 12 weeks, down to 4% from 4.4% the pervious period. That said, the market continues to perform strongly, outpacing the total grocery market and fresh and chilled -  which saw growth of 1.9% and 1.3% respectively. In volume terms, the total grocery and fresh and chilled markets were flat, growing at 0.1% each, while dairy saw improved growth of 1.3%.

Commenting on the findings, Kantar Worldpanel dairy expert Oliver Bluring said: “The sector seeing the biggest drop off in growth this period has without doubt been butter, with 12 week uplift down at £24million, while growth of the overall dairy market dropped from £109million to £100million.”

The slowing growth of butter can be seen across all retailers, though Co-op in particular saw its relatively strong uplift last period almost disappear in the last 12 weeks. This comes despite the retailer seeing a strong performance at a total dairy level, where once again the Discounters saw a drop off of almost £10 million between them.

The overall dairy market continues to grow almost exclusively through non-promoted sales with Y for £X deals dipping into decline. This pattern is echoed within the butter sector, where Y for £X deals account for  a decline of £9 million in the past 12 weeks, while Temporary Price Reduction (TPR) sales up lift has fallen back by £7 million.

The decline we see in butter cuts across all life stages, although is particularly evident in those shoppers in the lower socio-economic groups. This again is in contrast to the wider dairy market where these shoppers are driving slight uplift –with retired people being the key group driving decline.

The growth of the dairy market eased once again in the latest 12 weeks, down to 4% from 4.4% the pervious period.

The growth of the dairy market eased once again in the latest 12 weeks, down to 4% from 4.4% the pervious period.

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Oliver Bluring

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