Yoghurt and Sour Milk Products in Iran - New Report Available

Retail volume sales of sour milk products—known as doogh in Iran—increased by 6% over the course of 2014, a considerably lower rate of growth than the current value CAGR of 12% which was recorded in the category over the course of the entire review period. This slowdown can be attributed mainly to the maturity of the trend of Iranian consumers switching from unpackaged sour milk products to packaged sour milk products. Spoonable yoghurt, meanwhile, increased by 7% in retail volume during 2014, a rate of growth which was commensurate with the current value CAGR of 7% recorded in the category over the entire review period. This situation shows that the shift away from unpackaged yoghurt towards packaged yoghurt is still well underway. In each of these categories, the shift of consumers away from unpackaged towards packaged products remained among the most important reasons for the strong volume growth recorded during 2014.

Competitive Landscape

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Domestic company Kalleh Dairy Co maintained its leading position in yoghurt and sour milk drinks in Iran during 2014 with a 29% value share. The company boasts a very wide yoghurt product portfolio across fruited spoonable yoghurt and flavoured spoonable yoghurt, including full fat and low-fat products. The company also recently introduced pre/pro-biotic yoghurt, which has attracted the attention of high numbers of Iranian consumers who harbour concerns about the healthiness of dairy products. Kalleh yoghurt is widely available throughout the country and the brand has a very well-established reputation for offering very high-quality products and enjoys strong loyalty among a significant proportion of the Iranian population. Furthermore, the Kalleh brand continues to appeal to high numbers of consumers due to its attractive packaging. Kalleh Dairy Co introduced a new range of yoghurt under the Seven brand name 3-4 years ago. Seven is a stirred yoghurt which became very popular due its interesting flavours and attractive red packaging. As a result of this launch and its popularity many people when they ask for yoghurt in shops they simply ask for a ‘Seven’.

Industry Prospects

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