MARCH 2022
dairy foods
industry
STATE OF THE
Photo courtesy of Getty Images / Kiwis
For several years, reports of a decline in consumption of dairy milk has led some to erroneously believe the dairy industry is slowing down, or even moribund. Huge growth in plant-based dairy analogs, and flat liquid milk sales certainly cannot be denied, but according to research by multiple organizations, dairy foods are enjoying a steady growth. A new report from Innova Market Insights revealed global sales for yogurt (both dairy and alternative) is on target to pass the $100 billion mark this year.
Cheese, too, while always popular, saw Allied Market research reporting growth of the US cheese market coming in at a CAGR of 5.25% through to 2027, expected to hit $45.5 billion by 2027. With Statista predicting the global cheese market to hit near $110 billion in the same period, that indicates Americans will be enjoying nearly half of the cheese on the planet.
Dairy products are enjoying a boom thanks to health- and comfort-conscious consumers.
By DAVID FEDER, RDN, Executive Editor-Technical
And no way are we leaving out ice cream. The International Dairy Foods Association (IDFA) noticed last year that ice cream production in 2021 was on track to beat a five-year high set the year before of well more than a billion gallons produced. The report noted that spring 2021 sales of frozen novelties like chocolate ice pops and ice cream bars were already running 24% ahead of the 2019 figures for the same period. Meanwhile, a Fortune Business Insights analysis predicted global ice cream sales will near $92 billion in 2027, a 30% jump from $71 billion in 2019.
Drivers of this pro-dairy trend include the recent impact of the global health crisis and its tw-pronged stimulation of consumer interest in both health and comfort foods. Consumers recognize dairy as a rich source of highly bioavailable protein, vitamins, and minerals. They also equate cultured dairy and its probiotic benefits as important to digestive health, and therefore immunity.
Dairy makers are getting more creative as they expand flavor offerings of traditional dairy favorites. Photo courtesy of Snowdonia Cheese Co.
Dairy manufacturers are continuing efforts to better serve these consumer desires. On the health front, products catering not only to human health but ecological health—sustainability, organics, and even packaging being key points concerning the latter.
Dairy products made for younger consumers tend to hit both the health and the comfort targets. Dairy products are the second largest category of new products for children aged five to 12. Top sellers are milk mixed beverages and drinkable yogurt, with spoonable yogurt, liquid milk, processed cheese items, and ice cream and other desserts following. But flavor is king for this category.
One of the biggest advances in dairy technology is the perfected craft of creating real dairy proteins via microbial fermentation, leaving the cow out of the production equation. Photo courtesy of Urgent Co./Brave Robot
While chocolate, vanilla, and strawberry are favorites, coming up fast are banana, coconut, and caramel. Most new dairy products for children are sugar- and fat-reduced, plus bolstered with fiber and extra vitamins and minerals. Ingredient makers have developed new natural stabilizing systems to increase shelf life and avoid separation and sedimentation in even the most difficult cases, even with cocoa, where it keeps the particles suspended.
These ingredients are especially handy with the growing popularity of milk-juice combination beverages, as well as for yogurt and yogurt drinks. Puddings and ice cream, too, are getting boosted with the same with health benefits.
Meanwhile, Chobani, Inc. is continuing its foray into the digestibility space with two new dairy platforms: Chobani Ultra-Filtered Milk—a lactose-free, high-protein (2.5 times more protein than traditional milk) ultrafiltered milk, and Chobani Half & Half. The company uses a special filtration process to render the milk lactose-free, with half the sugar and 2.5 times more protein than traditional milk.
With annual yogurt sales heading pass the $100 billion mark, yogurt makers are outdoing each other to elevate the health, flavor, and eco-consciousness of their offerings. Photo courtesy of Alexandre Family Farm
The health crisis of the past couple of years only served to increase consumer awareness of maintaining a healthy environment and transparent sourcing of what we eat. In practically every survey of consumer attitudes conducted since 2020, sustainability and other “social ingredients” have proven to be nearly as important as the physical ingredients that go into foods and beverages.
Case in point, a 2020 study by Lightspeed/Mintel revealed that specifically for yogurt, climate concerns were impacting purchase behavior. This was most prominent among those younger adults aged 18-34. Where 16% of all yogurt buyers signaled that environmentally friendly practices are an important purchase attribute, 26% of the younger contingent held that criterion.
Flavor still rules, and trending flavors in dairy are focusing on produce, especially fruit and vegetable combinations. Photo courtesy of Urgent Co./Modern Kitchen
Better digestibility, higher nutrient levels, and creamier textures are targets for today’s liquid dairy products. Photo courtesy of Chobani, Inc.
Alexandre Family Farm, the country’s first and only certified regenerative organic dairy farm, responded to this demand with its 100% grass-fed A2/A2 organic yogurt, the first of its kind. The company’s yogurt, available in plain and vanilla flavors, is the first yogurt certified as being based on regenerative agriculture. It also is the first yogurt to follow seasonal milkfat. That is, the company’s yogurts do not have a standardized level of milk fat. Rather, for each batch, the milkfat percentage is the same as it was from the cow on the day of milking.
Dairy makers will continue to keep their fingers on the pulse of consumer needs and trends, while exploring new flavors and combinations that enhance healthier dairy offerings. While the plant-based dairy analogs might seem like a challenge, it is evident that they are inspiring dairy makers to grow in creativity and expand their collaboration with consumers in the process. PF
March 2022