Dairy Snacks Market Up 6%

BATH, United KingdomThe international market for dairy snacks grew by 7 percent in 2009 and is predicted to rise by 6 percent in 2010, according to new market research from food and drink consultancy Zenith International. The Dairy Snacks 2020 Report" estimates total volume at 217,000 tons in 2010 across 26 countries in North America, Latin America, West Europe, East Europe, Africa, the Middle East and Asia Pacific.

The United States accounted for almost two-thirds of the total dairy snack volume in 2009; the United Kingdom was the second largest market, with other key countries including France, Canada, Germany and Japan. The most developed regions are North America, West Europe and Australia, with Latin America and East Europe presenting the next opportunities for companies to be first to market.

According to the report, the most successful dairy snack products have come from leading international players in the overall dairy market, who command brand recognition and marketing power. Key players and brands include Bel with Mini Babybel, Kraft with Dairylea, and Yoplait yogurt tubes. In countries where dairy snacks have been available for longer and are more established, retailer private labels have been introduced, but these have yet to make a material impact.

Dairy snacks, although a relatively recent phenomenon, have firmly established themselves as an important segment within both the dairy market and the wider market for snacks," said Zenith Market Analyst Laura Knight. As modern on-the-go lifestyles have left consumers time poor, many people are increasingly looking for a convenient snack that delivers on health and nutrition, also one that tastes good and provides a pleasurable eating experience. Dairy snacks are well placed to meet these consumer demands and manufacturers have begun to capitalize on the opportunity this presents."

Although dairy snacks are undeveloped as a snack segment, compared to more traditional snacking foods such as crisps and bars, it is clear that there is considerable long-term potential for the market and Zenith expects the market to reach more than 260,000 tons by 2014.