Executive SummaryCheeseTRENDS At fi

Executive Summary

Cheese
TRENDS

At first glance, cheese per capita consumption would allow for faster growth rates than those being posted by the different cheese categories. However, consumers are moderating the volume of their purchases and the very slow growth of the population conspires against total volume growth. Furthermore, companies are continuing to favour exports over domestic sales where, despite difficulties in closing a sale, volumes are more important and risks are fewer.

COMPETITIVE LANDSCAPE

Cooperativa Nacional de Productores de Leche (Conaprole) continued to lead cheese retail value sales in 2013 with a value share of 16% and this is expected to be the same in 2014. The company bases its sustained success on the weight of its Conaprole brand (a synonym for dairy products in Uruguay) with decades-long presence in the country and very high levels of consumer loyalty. There are five other top-ranking companies with double-digit value shares of cheese: Naturalia Srl (second), Noliman SA (third), Quesería Helvetica SA (fourth), Selgar SA (fifth) and Granja Brasetti SRL (sixth). With the exception of Noliman SA which has strong presence in processed cheese, the other four companies have very similar portfolios and compete to improve their respective value shares with pricing, promotions and on-site tastings.

PROSPECTS

Consumption of cheese is firmly established among Uruguayan consumers who will maintain a steady flow of purchases taking advantage of a good economic environment and the main options in brands and cheese types, both from local and international manufacturers.

Drinking Milk Products
TRENDS

The Uruguayan government, in setting the price of fresh/pasteurised milk, has not followed a set pattern since 2009, when it previously made minor adjustments twice per year. The unit price was kept unchanged in 2009 and 2010, but in 2011 it increased by 50 cents as the 50 cent coins were phased out in Uruguay. The price was adjusted in April 2012 and stayed fixed until late 2013 when 7% was applied. The fluctuating pricing policy has an impact on the production of long-life/UHT milk as companies resort to alter production volumes of these more expensive, deregulated types according to the evolution of the price of fresh/pasteurised milk in order to maintain profit levels.

COMPETITIVE LANDSCAPE

Cooperativa Nacional de Productores de Leche (Conaprole), the largest dairy company in Uruguay, remained the undisputed leader in value sales of drinking milk products in 2013 with a 75% value share. This is expected to be the case also in 2014 with the value share increasing to 76%. Unilever del Uruguay SA is expected to maintain second position with sales of its Ades soy drinks achieving 6% value share for the company in 2014, without competing directly with Conaprole. Ecolat Uruguay SA is expected to rank third with a 5% value share and Nestlé del Uruguay SA, unchallenged in value sales of flavoured powder milk drinks, is expected to stay fourth overall with 4% of total retail value sales of drinking milk products in 2014.

PROSPECTS

The 1% CAGR in value sales at constant 2014 prices expected to be posted by drinking milk products during the forecast period is two percentage points better than the CAGR posted between 2009 and 2014. With little volume growth expected for the forecast period due to the very high per capita milk consumption and a slow evolution of the average unit price foreseen as the government continues to set the price of fresh/pasteurised milk, more significant value sales growth at constant 2014 prices is not foreseen.

Yoghurt and Sour Milk Drinks
TRENDS

The fierce competition in functional drinking yoghurt where three companies maintain secure positions, Cooperativa Nacional de Productores de Leche (Conaprole), Fort-Masis SA (Groupe Danone) and Yakult Uruguay SA, has exhausted drinking yoghurt’s rapid volume growth possibilities. After peaking in 2011, retail volume sales have since seen a 9% decline. Companies have been unable to entice more consumers to purchase these products despite frequent advertising from Conaprole and Fort-Masis and have not launched any new products.

COMPETITIVE LANDSCAPE

Cooperativa Nacional de Productores de Leche (Conaprole) remained the overall leader of yoghurt retail value sales in 2013 with a value share of 60%, and this is expected to be the case also in 2014. Conaprole maintains permanent presence in the media which reinforces consumers’ recognition and brand loyalty. The company also markets the widest portfolio in yoghurt with competitive prices to sustain excellent results. Fort-Masis SA (Groupe Danone) is expected to continue in second place with a 14% retail value share in 2014, maintaining strong presence in functional and fortified yoghurt with its Activia, Actimel and Danone Vidacol brands.

PROSPECTS

Uruguayans, in general and whether they consume yoghurt or not, acknowledge it to be a healthy product and therefore it could be expected that more consumers will incorporate one type of yoghurt into their diets during the forecast period. However, the number of new consumers is not foreseen to be significant and will cause only very moderate volume growth.

Other Dairy
TRENDS

Very high per capita consumption in the two larger categories (flavoured, functional condensed milk (100% dulce de leche and among the highest in the world) and chilled dairy-based desserts) is adversely affecting not only their own volume growth possibilities, but also the overall performance of other dairy volume and value sales.

COMPETITIVE LANDSCAPE

Cooperativa Nacional de Productores de Leche (Conaprole) is continued to lead other dairy value sales with an overall 44% retail value share in 2013 (expected to be 45% in 2014). In 2014, Conaprole will remain the clear leader in cream (86% value share) and in condensed/evaporated milk (40%) with its sales of dulce de leche, and will rank second in chilled and shelf stable desserts (33%). Fort-Masis SA, selling exclusively chilled and shelf stable desserts within other dairy, is expected to lead sales with a 40% value share and rank second overall in other dairy with 16%. Ranking third overall in other dairy will be Los Nietitos SA with an 11% value share in 2014, entirely derived from sales of dulce de leche, so that it will rank second behind Conaprole in condensed/evaporated milk.

PROSPECTS

The forecast period volume growth of flavoured, functional condensed milk, with one of the highest per capita consumption rates in the world, is expected to be quite small and therefore the overall volume growth of other dairy sales will largely depend on the performance of dairy-based desserts.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Uruguay with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Uruguay, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Uruguay market research report includes:

Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic volumes and values, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

What is the market size of Dairy in Uruguay?
What are the major brands in Uruguay?
How has the economic downturn impacted sales performance given its staple food status?
Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
How are volatile farmgate prices for milk impacting retail prices and sales performance?

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Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Table of Contents

Dairy in Uruguay - Category Analysis
DRINKING MILK PRODUCTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data

Table 1 Sales of Drinking Milk Products by Category: Volume 2009-2014

Table 2 Sales of Drinking Milk Products by Category: Value 2009-2014

Table 3 Sales of Drinking Milk Products by Category: % Volume Growth 2009-2014

Table 4 Sales of Drinking Milk Products by Category: % Value Growth 2009-2014

Table 5 NBO Company Shares of Drinking Milk Products: % Value 2010-2014

Table 6 LBN Brand Shares of Drinking Milk Products: % Value 2011-2014

Table 7 Distribution of Drinking Milk Products by Format: % Value 2009-2014

Table 8 Forecast Sales of Drinking Milk Products Products by Category: Volume 2014-2019

Table 9 Forecast Sales of Drinking Milk Products Products by Category: Value 2014-2019

Table 10 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2014-2019

Table 11 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2014-2019

YOGHURT AND SOUR MILK PRODUCTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data

Table 12 Sales of Yoghurt and Sour Milk Products by Category: Volume 2009-2014

Table 13 Sales of Yoghurt and Sour Milk Products by Categor