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The Agriculture and Horticulture Development Board (AHDB) – in partnership with Linney and milk processors such as Müller UK & Ireland – has released new research aimed at understanding how aisle design and packaging can significantly influence consumer purchasing behaviour in the milk category.

This research comes at a critical juncture for the dairy industry, which faces declining milk consumption and shifting consumer attitudes towards dairy products.

The dairy landscape: Challenges and opportunities

The dairy category stands as one of the most valuable segments within the grocery market, accounting for a staggering £16.4 billion in total spend in the UK alone.

Despite its prominence, milk volumes have experienced a concerning decline of 2.6% over the past year, equating to a loss of approximately 102 million litres.

The AHDB/YouGov Consumer Tracker reveals that nearly 20% of consumers are considering reducing their dairy intake, primarily driven by health concerns and animal welfare issues. This decline poses significant challenges for retailers and dairy processors, necessitating innovative strategies to engage consumers effectively.

Insights from the AHDB’s 'Optimising Milk In-Store' research

To address these pressing challenges, the AHDB's 'Optimising milk in-store' research seeks to provide retailers and processors with actionable insights into shopper preferences and behaviours.

The study employed a multifaceted approach, including a quantitative survey and a consumer immersion phase that tested over 4,000 unique combinations of packaging designs and aisle layouts.

Key findings:

Health messaging drives purchase intent: One of the standout findings from the research is the powerful impact of health-related communication within the milk aisle. When health messages were incorporated into the shopping environment, 25% of consumers indicated they would be more likely to purchase milk. The most effective health message identified was: “Milk naturally contains seven vitamins and minerals – vitamins B2, B5 and B12, calcium, iodine, potassium and phosphorus”.

This messaging not only enhanced the perceived quality of the milk aisle but also transformed it into a more inspirational and engaging space, encouraging shoppers to view milk as a vital component of a healthy diet.

The importance of packaging: On the packaging front, the research revealed that visuals and messaging centred around farming practices resonate strongly with consumers. Cow-centric imagery – depicting cows grazing in lush fields – coupled with messaging emphasising high food and farming standards, proved particularly effective in capturing shopper attention.

Becs Goodwin, category development controller at Müller, commented: “AHDB’s fixture and packaging strategy is built on deep consumer insight, and Müller is proud to be part of the work to shape the fixture of the future. This collaboration reflects our shared ambition to reinvigorate the dairy aisle and inspire consumers with the benefits of milk, and we’re looking forward to engaging with our retail partners to help them deliver a more impactful and engaging experience in-store.”

Consistency is key: The study also underscored the importance of maintaining consistent messaging across both aisle communication and packaging. Shoppers responded most positively to clear and cohesive themes that highlighted nutritional benefits and responsible farming practices. This consistency not only aids in reinforcing brand identity but also helps consumers make informed purchasing decisions, ultimately influencing their loyalty to specific products.

Consumer immersion techniques: A noteworthy aspect of the research was the use of themed 3D virtual aisles, allowing researchers to simulate shopping experiences and gauge consumer reactions to various aisle designs and packaging strategies. This innovative approach provided valuable insights into how different elements of the shopping environment can impact consumer behaviour, revealing preferences for certain layouts and messaging styles that resonate with modern shoppers.

Strategic implications for retailers

For retailers, the insights gleaned from this research offer a strategic framework for enhancing shopper engagement within the milk category.

By prioritising clear communication about the nutritional benefits of milk and showcasing responsible farming practices, retailers can effectively address consumer concerns and potentially reverse the downward trend in milk sales.

Redesigning the milk aisle: Retailers are encouraged to consider redesigning milk aisles to incorporate health messaging prominently. This could involve new signage that highlights the nutritional advantages of milk, creating a visually appealing and informative shopping experience. Additionally, integrating interactive elements, such as QR codes linking to further information on sourcing and health benefits, could enhance consumer engagement.

Leveraging packaging innovations: Highlighting packaging that features authentic visuals of dairy farming and clear messaging about quality standards can help differentiate products in a crowded market. Retailers should collaborate with processors to ensure that packaging not only meets regulatory standards but also resonates with consumer values around sustainability and animal welfare.

Training staff and educating consumers: To maximise the impact of these changes, retailers should invest in staff training to ensure that employees are knowledgeable about the benefits of milk and can effectively communicate these to shoppers. Educational campaigns, both in-store and online, can further engage consumers and foster a deeper understanding of the health benefits and quality standards associated with dairy products.