Customized report – Free from lactose and free from dairy cheese in Germany and the United Kingdom

October 2018

In general, retail value sales of free from products, which include packaged food products that are free from lactose and free from dairy, among others, have seen considerable growth in 2017 in Germany and the United Kingdom (U.K.).

It is becoming more common to avoid dairy without having a specific food intolerance. Thus, growth will come from both those needing to avoid and wanting to avoid.

Retail sales and prices

The tables below show the historic numbers for free from lactose cheese sold on the German and British markets

Free from lactose dairy products, by type, in Germany
Historic retail sales (US$ millions) and growth (%)
Type 2013 2014 2015 2016 2017[e] CAGR* 2013-2017[e]
Free from lactose cheese 16.1 16.8 17.7 18.4 19.3 5%
Free from lactose milk 149.8 158.2 168.6 178.1 187.7 6%
Free from lactose other dairy 43.1 47.9 53.5 58.4 61.8 9%
Free from lactose yoghurt 120.2 127.1 134.9 142.8 150.9 6%
Total free from lactose dairy 329.2 350.0 374.6 397.7 419.7 6%

Source: Euromonitor International, 2017

e: Estimate

*CAGR: Compound annual growth rate

Free from lactose dairy products, by type, in the United Kingdom
Historic retail sales (US$ millions) and growth (%)
Type 2013 2014 2015 2016 2017[e] CAGR* 2013-2017[e]
Free from lactose cheese 14.6 17.4 19.5 22.1 26.1 16%
Free from lactose milk 26.3 29.7 30.6 36.8 41.1 12%
Free from lactose other dairy 1.1 1.6 1.2 1.0 1.0 −2%
Free from lactose yoghurt 20.9 21.2 21.4 26.9 30.9 10%
Total free from lactose dairy 62.8 69.9 72.6 86.8 99.2 12%

Source: Euromonitor International, 2017

e: Estimate

*CAGR: Compound annual growth rate

According to Euromonitor International (2017), there has been an overall decline in dairy retail sales in Western Europe, led by the U.K. and Italy. Even though retail sales for non-dairy cheese alternatives are not currently available, a general look at the growth of retail sales of the non-dairy product category show an increasing preference of consumers towards dairy-free products.

A growing number of consumers in Germany and the U.K. avoid dairy, believing themselves not only to be sensitive to milk sugar, but to dairy proteins as well. Some are simply seeking to reduce the animal-derived food component of their diets, be it for health, ethical or sustainability reasons.

In Germany, free from dairy saw a 4% growth from 2013 to 2017, probably as a reflection of the greater movement towards plant-based food. However, this trend was mainly seen in health food stores and was not yet in the mainstream.

In the U.K., the free from dairy category recorded an estimated growth of 13% from 2013 to 2017, with free from dairy other milk alternatives even more dynamic with an increase of 49% (including plant-based alternatives, such as nut and cereal milks).

Dairy-free products, by type, in Germany
Historic retail sales (US$ millions) and growth (%)
Type 2013 2014 2015 2016 2017[e] CAGR* 2013-2017[e]
Free from dairy ice cream alternatives 0.2 0.2 0.3 0.3 0.4 19%
Free from dairy milk alternatives 139.9 149.7 154.1 158.2 161.4 4%
Free from dairy soy milk 123.7 130.6 132.3 133.9 134.4 2%
Free from dairy other milk alternatives 16.2 19.1 21.7 24.3 26.9 14%
Free from dairy soy chilled and shelf stable desserts 22.0 23.2 24.0 24.5 25.0 3%
Free from dairy soy yoghurt 56.6 59.9 62.8 66.0 68.5 5%
Total dairy-free 218.6 233.0 241.2 249.0 255.3 4%

Source: Euromonitor International, 2017

e: Estimate

*CAGR: Compound annual growth rate

Note: Data for cheese is not currently available

Dairy-free products, by type, in the United Kingdom
Historic retail sales (US$ millions) and growth (%)
Type 2013 2014 2015 2016 2017[e] CAGR* 2013-2017[e]
Free from dairy ice cream alternatives 8.2 8.5 9.1 9.5 10.2 6%
Free from dairy milk alternatives 178.3 197.6 223.9 261.6 295.5 13%
Free from dairy soy milk 151.4 156.4 158.7 161.6 163.9 2%
Free from dairy other milk alternatives 26.9 41.2 65.2 100.0 131.6 49%
Free from dairy soy chilled and shelf stable desserts 2.8 2.9 3.1 3.2 3.3 4%
Free from dairy soy yoghurt 31.4 32.4 37.0 38.6 44.8 9%
Total dairy-free 220.6 241.4 273.1 312.9 353.7 13%

Source: Euromonitor International, 2017

e: Estimate

*CAGR: Compound annual growth rate

Note: Data for cheese is not currently available

Example of products

According to Mintel, between January and December 2017, a total of eighteen products were launched with a dairy-free claim – nine in Germany and nine in the U.K. All dairy-free products belong to the "processed cheese" sub-category and were also labelled with the claim low/no/reduced allergen. In many cases, products had also the claim no animal ingredients, vegan, gluten free or low/no/reduced lactose. Six of these eighteen products had an import status, and two out of the eighteen had a "spreadable" texture. Their price ranged between US$2.97 and US$4.27.

Note: The dairy-free claim is used when on-pack terms highlight that the product is dairy-free. Products that state to be free from milk or non-dairy may contain milk proteins or other milk derived ingredients. The dairy-Free claim would only be captured for 'free from milk' and 'non-dairy' products when they are actually free from dairy and dairy derivatives.

Below is a snapshot of the eighteen cheese alternatives launched in Germany and the U.K. in 2017 (data available until the beginning of December).

All in Foods

Germany
October 2017

Original Cheese

Arivia

UK
October 2017

Mozzarella Flavour Block for Pizza

Arivia

Germany
September 2017

Organic Vegan Slices

Arivia

Germany
September 2017

Organic Vegan Alternative for Pizza

Bute Island Foods

Germany
September 2017

Dairy Free Spread with Chives

Bute Island Foods

Germany
September 2017

Dairy Free Spread with Spring Onion & Cracked Black Pepper

Tesco

UK
July 2017

Coconut Oil Alternative to Mature Cheddar Cheese

Tesco

UK
July 2017

Coconut Oil Alternative to Wensleydale Cheese with Cranberries

Tofutown

Germany
July 2017

Herr Berta Organic Veggie Processed Cheese Melt Shreds

Tofutown

Germany
July 2017

Organic Pizza Shreds

Sainsbury's

UK
June 2017

Original Coconut-Based Alternative to Soft Cheese

Sainsbury's

UK
June 2017

Grated Cheddar-Style Coconut-Based Alternative to Cheese

Good Carma Foods

UK
May 2017

Original Dairy-Free Cheese Alternative to Parmesan

Earth Island

UK
April 2017

Dairy Free Pepper Jack Style Cheese Alternative Slices

Euro Company

Germany
March 2017

Fermented Nut Cheese

Tofutown

Germany
February 2017

Herr Berta Organic Veggie Melt Singles

Arivia

UK
February 2017

Prosociano Cheese

VBites Foods

UK
January 2017

Edam Style Cheese Alternative

Resources

Prepared by Josique Lorenzo, Market Analyst, Global Analysis

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2017).

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