World Market for Dairy Products and Alternatives

October 2023

The dairy products and alternatives industry is expected to see a 6% increase in 2023 (current terms and year-on-year exchange rates), mainly driven by inflationary pressures. This report examines key industry trends, including health and functionality, particularly related to gut health and consumer need states, innovation in the plant-based segment, sustainability efforts such as emissions reduction and holistic practices, as well as the importance of enhancing dairy experiences for consumer e

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This report comes in PPT.

Examining Five Trends Shaping Dairy Products and Alternatives

Inflation sparks dairy industry strategy shifts

The dairy industry responds to inflation by embracing change and investing in consumer-centric products. Long-term implications involve optimising operational efficiency, diversifying raw material sourcing and exploring new revenue streams. Implementing pricing strategies while emphasising added value will be vital to navigate inflation's challenges and maintain competitiveness in the dynamic dairy market. Exploring value for money options to meet diverse customer demands will also be crucial.

Next frontier of functionalities: Gut health and consumer need states

Dairy manufacturers should anticipate a growing demand for health-focused dairy products with added functionalities. Emphasising gut health benefits through probiotics and prebiotics will likely remain a key trend. As research continues to uncover the link between gut health and cognitive wellbeing, dairy manufacturers that invest in innovative, health-orientated dairy offerings can position themselves for sustained success. Asia Pacific leads in dairy innovations focusing on functional ingredients that promote mental wellbeing.

Health, taste and natural factors to drive innovation in plant-based alternatives

The plant-based dairy market is poised for continued growth, with plant-based milks leading the way, especially in North America. Key trends include barista-friendly options, high-protein offerings and products with added benefits. Taste improvement is a critical challenge, prompting manufacturers to emphasise functionality over being dairy alternatives. The future will prioritise natural, cleaner ingredients, health and taste, while precision fermentation and lab-grown dairy hold promising potential.

Dairy industry's sustainability will focus on emissions reduction and holistic practices

Sustainable practices, technological adoption and efficient resource use are critical paths forward for the dairy industry. Initiatives such as Bovaer, reducing methane emissions without harming animal health or milk production, demonstrate potential for reducing greenhouse gases. Sustainability efforts should encompass local sourcing, free-range practices and holistic certifications. The plant-based dairy and baby food categories lead in holding sustainability claims, highlighting the need for improvement within the traditional dairy sector.

Enhancing dairy experiences for consumer engagement

Among the evolving dairy industry trends is the importance of delivering experiences to consumers. The concept of permissible indulgence, coupled with a focus on broadening consumption occasions and delivering on convenience, presents manufacturers with significant opportunities for growth and brand loyalty. In the long term, meeting consumers' desires for immersive, indulgent experiences is likely to lead to sustained success and market relevance in the ever-changing dairy industry landscape.

Examining five trends shaping dairy products and alternatives
The dairy sector reverses course, rebounding after two years of slowdown
Inflation results in elevated milk prices and shapes the dairy sector’s value growth
Plant-based dairy exhibits remarkable historic growth fuelling global market expansion
Expanding cheese horizons to continue in Asia Pacific, while non-soy milk gains ground in the US
Yoghurt and other dairy holds interesting prospects in the Middle East and Africa
Milk formula challenges in Asia Pacific while baby snacks gain global appeal
US, India and Indonesia are poised to be the next value growth frontiers in the dairy industry
Unlocking growth potential in I ndia's dairy and plant-based market
Stagflation and commodity price concerns can potentially challenge dairy industry growth
E-commerce and discounters thrive as the fastest growing distribution channels
Baby food leads global e-commerce sales in the dairy and alternatives industry
Key strongholds lose ground while p rivate label ascendance amid shifting market dynamics
Private label dairy excels globally: Emerging markets and plant-based dairy show promise
While key stakeholders faced setbacks, Savencia and Gujarat Co-operative gained ground
Danone streamlines its portfolio while functional and plant-based add value
Companies operating in emerging markets among the top global performers
Examining five trends shaping dairy products and alternatives
Escalating input costs prompt dairy's focus on added value and affordability
Adapting dairy strategies for growth through affordability, nostalgia and diversification
Dairy industry advances with next-gen functionalities, emphasising gut health integration
Hy and Meiji's unique yoghurt innovations revolutionise the mental w ellbeing space
QB+ highlights the potential for everyday probiotic booster shots in the UK
Plant-based dairy has transcended its niche status, steadily advancing across global regions
Revamping plant-based dairy: Taste, functionality, and natural ingredients
Three Trees launches clean, oil-free barista milk in response to demand for natural
Climax Foods introduces a plant-based casein that can be a game changer for vegan cheese
Advancing sustainability in dairy products and alternatives amidst climate challenges
Norrlogisk Mellanmjölk: Fresh semi-skimmed cow’s milk with lower carbon footprint
Bonneterre concentrated plant-based milk: A more environmentally-friendly alternative
Enhancing dairy experiences through indulgence, new occasions and convenience
Convenience and targeting new occasions as drivers of industry growth through experience
Global snapshot of baby food
Global snapshot of butter and spreads
Global snapshot of cheese
Global snapshot of drinking milk products
Global snapshot of other dairy
Global snapshot of yoghurt and sour milk products
Global snapshot of plant-based dairy
Regional snapshot: Asia Pacific
Regional snapshot: Australasia
Regional snapshot: Eastern Europe
Regional snapshot: Latin America
Regional snapshot: Middle East and Africa
Regional snapshot: North America
Regional snapshot: Western Europe


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