Dairy retail sales slow, but category still grows

Published 21 March 18

Growth in dairy* retail sales is showing signs of slowing down, according to Kantar Worldpanel. In the twelve weeks to 25 February 2018 sales value was 5.3% higher compared to the same period the year before. This is down from a 6.2% increase in sales value in the previous 12 week period (ending 28 January 2018). In volume terms year-on-year growth was 1.7%, down from 2.3%.

Butter and cheese both contributed to the easing growth figure. Cheese is growing year-on-year in both volume and value terms, but gains were smaller than they had been previously. Meanwhile butter showed strong year-on-year growth in value terms thanks to rising prices over the last year, but these higher prices hurt sales volumes, somewhat limiting value gains.

2018.03.22 Kantar sales

Despite the slightly lower growth figures, dairy is still performing well compared to the grocery market as a whole. The overall grocery market increased 0.5% in the 12 weeks to 25 Feb compared to a year before, and the fresh and chilled category grew 0.7%; both well below dairy’s 5.3% growth.



*Kantar Worldpanel data for the ‘Total dairy’ category also includes some non-dairy products such as margarine and eggs, however these contributed to no more than 16% of the category value in the current period (12 weeks ending 25 Feb 2018)