Milk consumption decreased by 1 million liters per month due to its high price

The downward trend in milk consumption continues with increasing intensity in 2023. The phenomenon was first recorded in 2022.

A significant increase in prices forced consumers to cut their own spending even for one of the staple foods. Although companies did not make new price increases for various categories of milk in 2023, high prices persisted. Dairy companies currently only offer price cuts and promotions on some of their less popular products, but certainly not on fresh milk and highly pasteurized milk.

Milk under its own brand (with the label of supermarkets) began to be in special demand. The fact that its price remains 60 cents below regular milk (from Delta, Olympos, etc.) has attracted many consumers.

The “household basket” also played a decisive role in increasing sales of private label milk, as many supermarket chains chose to put it in their “basket”.

According to Circana (formerly IRI), total cow milk sales in the first quarter of 2023 amounted to 113.24 million euros, recording an increase of 13% compared to the corresponding period in 2022. In the same time sales fell by 5.3%, with households in Greece buying milk from the supermarket about 4 million liters less. Recall that in general, in 2022, the white milk market fell in sales by 4.8%.

On the other hand, private label milk sales increased by 6.6% over the same period, while sales in this category increased by 40.2%! The sharp increase in the turnover of private label milk is associated with an increase in sales volume, but is also associated with a significant increase in prices. Overall, private label cow’s milk increased in price by 31.3%, while the corresponding overall increase in brand value was 18.7%.

Total fresh milk sales fell 3.2% between January and April 2023 compared to the corresponding period in 2022. Some will say that this is a small decrease. In fact, this is not the case, but that is because during the same time, private label fresh milk sales increased by 36%, or about 1.67 million liters. The price of branded fresh milk this year increased by 17.3% compared to last year, to 1.57 euros / liter (average price). The average price of fresh milk under its own brand after the revaluation increased by almost 30% and amounted to 1.12 euros per liter.

Source link