Growth will temper primarily due to an expected rise in industry competition.
Los Angeles, CA (PRWEB) September 26, 2013
The Yogurt Production industry includes companies such as Fage and Chobani. Largely due to the rising popularity of Greek-style yogurt, the industry grew an average 3.0% annually in the five years to 2013.
Despite a strong annualized growth rate, the Yogurt Production industry experienced significant decline in 2009 due to the effects of the recession. Although per capita yogurt consumption increased 5.5% that year, consumers chose value-priced yogurt in place of high-priced yogurt products. Moreover, major players implemented promotional and discount activities during the year to remain viable. When the economy returned to growth in 2010, industry revenue recovered and posted growth of 13.0% for the year. The popularity of Greek yogurt was still heavy on the minds of industry incumbents General Mills and Dannon. As a result, these companies began developing their own Greek yogurt brands to win back consumers. This supported growth in industry revenue is estimated to continue its upward trend by 3.0% to reach $4.2 billion in 2013.
IBISWorld forecasts industry revenue will increase in the five years to 2018. Continued economic recovery, rising disposable incomes and increased per capita consumption of yogurt are expected to support overall industry growth. However, growth will temper primarily due to an expected rise in industry competition, which will lead to price competition. Establishment numbers are expected to increase in the five years to 2018. This indicates that the industry will begin to exhibit signs of consolidation during the latter half of the five years as larger players aim to secure a greater share of the market.
For more information on the industry, including profit figures and company market shares, visit IBISWorld’s Yogurt Production in the US report page.
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IBISWorld industry Report Key Topics
Operators in the Yogurt Production industry manufacture yogurt and yogurt drinks. The industry primarily makes three styles of yogurt. Greek-style yogurt is thick because the whey is removed from the product. Swiss-style yogurt is incubated and then blended, giving it a creamier and thinner consistency. Set-type yogurt is incubated and receives no further stirring. This report excludes production of frozen yogurt (IBISWorld report 31152).
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