Greek yoghurt goes global as a healthy treat

This was up from less than two per cent five years previously, with actual launch numbers rising more than fivefold over that period. 

The current rapid growth trend started in North America and has certainly had the most effect on the overall yoghurt sector there. Launches of Greek and Greek-style products incredibly made up 29 per cent of US yoghurt launches recorded in the 12 months to the end of June 2012, compared with more modest but still significant levels of over 15 per cent in Australasia and nearly ten per cent in Western Europe.

Continuing growth for the product has been attributed to its inherent health qualities combined with its thick and creamy taste.

As competition has increased the market has seen an increasing range of formats and flavour options. Products tend to be probiotic and to come in a range of fat contents, commonly featuring whole milk, two per cent fat and zero per cent fat variants. 

Traditional plain and honey variants have also been joined by a whole range of fruit and other options, including lines giving an American spin with the use of US-style flavours such as blueberry and key lime pie.

The market was pioneered by Fage with its Total range, available in many international markets as well as its Greek homeland, but there have been many market entrants, both branded and own-label, as well as rising levels of new product activity.

 In the US, for example, the market is now led by Chobani, but it faces strong competition from Greek brands from established yoghurt market leaders, including Dannon's Oikos and General Mill's Yoplait Greek, as well as Greek options in many existing ranges.  Most recently, Yoplait Greek has been extended with the introduction of a fat-free 100-calorie option under the Yoplait Greek 100 name.

The Chobani brand, having found such success in the US, arrived in the UK in the autumn of 2012, positioned as a fat-free Greek yoghurt. This closely followed the launch of fat-free Greek Style yoghurts under the WeightWatchers brand. 

Also due to follow later in 2012 is another range from the US, with Hain Daniels set to introduce its Greek Gods brand, positioned as an indulgent premium dessert.  As might be expected in the UK, retailer own brands are also highly active,

Inevitably, the success of Greek yoghurts has led to interest moving to other sectors of the market, most notably to frozen yoghurt.

In the US, with its highly developed frozen yoghurt market, Greek-style launches have increased markedly over the past few months and have included some well known brands, including a frozen version of the Stonyfield Oikos organic brand from Dannon, frozen Greek yoghurt options from YoCrunch, Greek-style frozen yoghurt products from premium ice cream specialist Ben & Jerry's and, most recently, as part of Yoplait's first US frozen yoghurt range, which includes both Original and Greek-Style options.

The Innova Database has collected Greek Style yoghurt products in Australia and New Zealand over nearly a decade.  However the recent sharp increase has also been very much in evidence, to the point that a large supermarket may now have more than 10 per cent of its yoghurt shelf space occupied by Greek style yoghurt products. 

Brands such as Dairy Farmers, Jalna, Fresh'n Fruity (Fonterra), Farmers Union, Black Swan, Chris' and Danone provide natural Greek style yoghurt in family size packs, including low fat and no fat variants. 

Agro Farma, the US company behind yoghurt brand Chobani, acquired Australia's Bead Foods in mid-2011.  In November 2011, limited sales of imported Chobani fruit flavoured products commenced, marking the first international expansion for the brand. 

This led to an Australian-produced range available nationally by the end of September 2012.  Chobani joins fruit flavoured Greek style yoghurts under brands such as Tamar Valley and Danone.

Lu Ann Williams, research manager at Innova Market Insights, believes that despite rapid growth and increasing maturity, there is still further capacity for development in Greek yoghurt internationally.

The healthy yet indulgent image of the products, she contends, offers consumers an affordable everyday treat option, with the additional bonus of a healthy, natural image.

Source: Innova Market Insights