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
This report comes in PPT.
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.
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.
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.
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.
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.
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