Key findings

HW products in demand

HW remains important for German consumers when choosing dairy products, and there continues to be growing demand for products with reduced fat, sugar and artificial additives. Players are responding by developing healthier dairy options, including low-/no-fat alternatives or products enriched with probiotics or other functional ingredients.

Private label holds the biggest sales share

Although not as big a presence in plant-based dairy or baby food, private label accounts for a third of dairy retail value sales in Western Europe. In the UK, almost three quarters of fresh milk sales are accounted for by private label, while the retailers’ lines have 90%-plus shares in shelf stable dairy desserts in Germany and condensed and evaporated milk in Switzerland. And the high inflation in recent years has further boosted the popularity of private label.

Modern grocery retailers dominate sales

Modern grocery retailers dominate sales in Western Europe, with discounters, already the main distribution channel in Germany, making major gains in Turkey over 2018-2023. E-commerce, which received additional impetus during the pandemic, has continued to grow since then, albeit at slower rates.

Second tranche of HFSS regulations due in the UK in October 2025

The second set of HFSS regulations are set to be introduced in the UK in October 2025. These will include limitations on multibuy offers and a ban on advertising both online and on television. This will likely continue to push brand owners to reformulate any products high in fat, salt or sugar ahead of the upcoming legislation.