Producers of desserts for consumption in the German market could be facing challenging times ahead as a significant segment of the population is reportedly seeking “healthy eating lifestyles.” Recent research from Mintel reveals that 48% of the nation’s adult population says it is actively reducing consumption of or avoiding sugary foods, while 44% say the same about fatty foods. With so many consumers looking for so-called “healthy options,” traditional dessert menu treats could become less popular in the years ahead.
While Germany continues to be Europe’s largest dessert market in retail market value, volume sales of sweet treats have stagnated and even shown slight slippage of -0.2% since 2012, to weigh in at an estimated 0.48 million tons in 2016. In value terms, however, it likely experienced modest 0.1% growth rate in 2016.
Chilled desserts, such as mousses and puddings, are by far the largest segment of the market, accounting for 74% of total sales in 2015, followed by frozen desserts including frozen cakes and pastries at 24%, and ambient desserts such as fruit compote at 2%.
While it seems many consumers may be skipping dessert, yogurt producers could reaping the rewards. According to Mintel research, sales volume in Germany is predicted to have grown by 1.5% in 2016, with 2.1% market growth forecast through 2020 to reach 1.35 million tons.
According to Julia Büch, food and drink analyst at Mintel, across Europe the retail desserts sector is at a crossroads.
“In Germany,” she said, “it is under pressure as many consumers are seeking to follow healthier diets. While benefiting from an association with freshness, the market for chilled desserts has seen tough times in recent years, owed to growing competition from yogurts and other types of snacks and treats which are positioned as products that deliver a combination of both indulgence and health. This creates opportunities for dessert brands to leverage their indulgent nature with a healthy twist. Healthier indulgence offerings such as gourmet yogurt are poised for growth.”
Yogurt is perceived by many people as a healthy option. Mintel research indicates that 72% of German consumers agree that it is naturally healthy, while 71% say that consuming it is a good way to get protein into one’s daily diet.
As well as a healthier image, it seems that yogurt products in Germany are increasingly receiving an indulgent-style makeover. According to the Mintel Global New Products Database (GNPD), yogurts with the “rich” descriptor grew by 500% between 2013 and 2016.
This follows Mintel consumer research, which reveals that while the number of Germans avoiding sugar and carbohydrates seems high, they are still the most likely in key European markets to give in to sweet tooth cravings. As many as three-quarters of Germans consumers say that they allow themselves an occasional treat, compared to 64% of consumers in Spain, 62% in Italy, and 60% in France and Poland.
More information about the market research is available by visiting the Mintel website at www.mintel.com.
