Wednesday, 22 February 2017

Doogh market contracts in 2016

Yoghurt is set to remain an essential part of Iranian cuisine and be consumed by people of all ages and all socioeconomic levels. The product will likely continue to be popular for breakfast and as a complement to Iranian dishes, says Euromonitor in a report on the dairy market in the country. In addition, growth will be driven by the use of sour milk drinks in place of carbonated drinks by Iranian adults, as well as an overall consumption of doogh*, a drink often served with an Iranian meal. 

In 2016 retail volume sales of sour milk products such as doogh declined by 1%, continuing the downward trend of the last three years of the review period (2011 to 2016) and demonstrating that the category has reached its maximum potential, says Euromonitor. 

Plain yoghurt, on the other hand, grew by 1% in retail volume terms, an improvement over the negative retail volume CAGR of 3% recorded over the review period. This is due to the introduction of more sophisticated products with health and wellness adding value, Euromonitor said. The consumer tendency to switch from unpackaged to packaged yoghurt was another important reason for volume growth in 2016, the research firm added.

Kalleh Dairy maintained its leadership in yoghurt and sour milk drinks in Iran in 2016 with a 21% retail value share in last year. The company boasts a wide product portfolio of yoghurt, including spoonable and fruited yoghurt, flavoured, full fat and low fat products. Its probiotic yoghurt has attracted consumers with health concerns. Kalleh Dairy products are widely available throughout the country and enjoy loyalty from Iranians. Attractive packaging and a reputation as a manufacturer of quality products have also added to its popularity.

Overall, yoghurt and sour milk drinks is expected to record a 2% value CAGR at constant 2016 prices over the forecast period (2016 to 2021), compared to the negative constant value CAGR of 5% witnessed over the review period.

Interested?

Buy the Euromonitor Dairy in Iran report

*A beverage made with yoghurt and salted water.