Greek Yogurt Product Launches Soar 29% in U.S.

DUIVEN, The NetherlandsNew product launches of Greek and Greek-style yogurts comprised nearly 8% of global yogurt introductions during the 12-month period between June 2011 and June 2012, according to new market data from Innova Market Insights. Launches were up from less than 2% five years prior, with actual numbers rising more than fivefold over the period.

According to Innova, the current trend most likely started in North America and has been a key area of activity in the fresh dairy market. Launches of Greek and Greek-style products made up 29% of U.S. yogurt launches, compared with more modest, but still significant levels, of over 15% in Australia and nearly 10% in Western Europe. Continuing growth for the product sector 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 flavor options. Products tend to be probiotic and to come in a range of fat contents, commonly featuring whole milk, 2% fat and 0% fat variants. Traditional plain and honey variants also have been joined by a range of fruit and other options led by U.S.-style flavors, 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; however, there have been many market entrants, both branded and private label, as well as rising levels of new product activity. Chobani is the U.S. market leader, but it faces strong competition from Greek brands from established yogurt market leaders, including Dannons Oikos and General Mills 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. U.S.-based Hain Daniels is slated to introduce its Greek Gods brand, positioned as an indulgent premium dessert.

The success of Greek yogurts has led to interest moving to other sectors of the market, most notably to frozen yogurt. In the United States, with its highly developed frozen yoghurt market, Greek-style launches have increased markedly over the past few months and included some well-known brands, including a frozen version of the Stonyfield Oikos organic brand from Dannon, frozen Greek yogurt options from YoCrunch, Greek-style frozen yogurt products from premium ice cream specialist Ben & Jerrys and, most recently, as part of Yoplaits first U.S. frozen yogurt range, which includes both Original and Greek-Style options.

Lu Ann Williams, research manager at Innova Market Insights, said despite rapid growth and increasing maturity, there is still further capacity for development in Greek yogurt internationally. The healthy yet indulgent image of the products offers consumers an affordable everyday treat," she said.