The beauty of Innova’s annual Top 10 Trends of the food and beverage industry is that the trends apply across all market categories—including dairy products and dairy alternatives. Dairy and dairy alternatives overlap in many ways, differ in others, and our Top 10 Trends can be interpreted across both.

Let’s set the stage with an overview of consumer patterns. Innova Market Insights’ research shows that more than one in four global consumers drink milk at least once a day while another 45% report having milk one to six times per week. Breakfast is the primary meal occasion for milk and milk is the top morning meal beverages in 35 countries surveyed by Innova. Nearly half of those consumers we surveyed choose dairy milk, compared to about one in 10 consumers using only plant-based alternatives. In recent years, we’ve seen growth in a flexitarian eating patterns, including the more than one-third of consumers surveyed who say that they are flexible in choosing both dairy and non-dairy products.

We see differences in the types of claims on dairy and non-dairy packaging. Nutrients claims such as “high in protein” and “low in fat” are most widely used for dairy milk. Claims on non-dairy milk alternatives tend to highlight their non-animal features with statements such as “vegan” and “plant-based,” as well as claims focusing on allergens and intolerances, namely “gluten-free” or “lactose-free.” Not surprisingly, sugar reduction-related claims are becoming more prevalent across both categories. So too are ethical claims pertaining to the environment, animal welfare, and worker health.

Top 10 Trends and Dairy: Prioritizing Prevention

Consumers cite health reasons as the top drivers to consume more dairy alternatives and less dairy. They believe they are taking positive actions toward protecting their personal wellbeing and preventing various health concerns.

When we looked at active health claims on dairy product launches during a recent 12-month period, we noticed a marked rise in joint health claims. This is not surprising since dairy products are the hallmark source of calcium, needed for healthy bones and joints. Other claims on the rise pertain to skin health and brain health. These claims typically are not linked to dairy. However, we see untapped opportunities for dairy in holistic health, and nearly two-thirds of consumers surveyed globally say they consider mental wellbeing when thinking about holistic health.

We drilled down to learn more about major concerns around mental health. Stress and anxiety is the top concern, followed by tiredness and fatigue and then depression. Mental health claims are more common in countries that do not have the same claims regulation as in the US. An Italian dairy product launched in early 2024 contains valerian for sleep and relaxation and vitamin B6 to reduce tiredness and fatigue. A Japanese dairy drink launched in late 2023 includes GABA for improved sleep quality.

Digestive health, a major concern of consumers worldwide, enjoys a long and established association with fermented dairy and dairy alternatives. Consumers prefer dairy and dairy alternatives with added health benefits and are curious about the fermentation process to produce dairy. Growth in health benefits centers around postbiotics and prebiotics. Postbiotics are defined as “a preparation of inanimate microorganisms and/or their components that confers a health benefit on the host.” Launches touting postbiotics show a solid compound annual growth of +145% CAGR between 2021 and 2023. Launches with prebiotic claims are up 20% during the same period.

Top 10 Trends and Dairy: Nurturing Nature

The connection between dairy and nature is quite strong. When we asked consumers what they associate with nature protection, more than one-third said “ensuring animal welfare.”

Carbon footprint also is associated with both nature protection and dairy production, and interested consumers could use carbon emissions data to determine how sustainable a product is. This includes both animal dairy and dairy alternatives. In fact, two in five consumers say that dairy alternatives are more sustainable than regular dairy. Innova sees 35% average annual growth in dairy categories where products were making carbon footprint claims between 2019 and 2023.

Consumers also look for regenerative farming claims. The dairy industry is delivering, with +60% average annual growth in dairy categories with a regenerative agriculture-related claim between 2021 and 2023. Forest protection claims are on the rise in dairy alternatives. End of Part 1