The IFF report on dairy trends identifies several key factors that are driving industry expansion and innovation, emphasizing the evolving preferences of consumers in the dairy and alternative dairy categories. Here are the main trends highlighted in the report:
1. Better-Being and Health Labeling:
- Consumers are increasingly influenced by health labeling, with 60% of respondents considering it when making product choices.
- Brands can win over consumers by offering products that enhance wellness and align with their health preferences.
2. Quality Over Price:
- Despite inflation's impact on the dairy industry, consumers are prioritizing quality over cost, with many opting for premium brands.
- 63% of respondents said they started or continued to buy more expensive dairy brands in Q4 2023, and 52% preferred to pay more for quality assurance.
3. Private Label Products:
- Private label dairy products have gained popularity during the economic downturn, with 35% of consumers choosing budget-friendly options without compromising quality.
4. Driving Value with Values:
- Brands are resonating with consumers by aligning their products with sustainability and ethical consumption values.
- 61% of respondents emphasized the importance of aligning purchases with values, especially among Gen Z members (67%).
5. Indulgence and Convenience:
- The report also highlights a shift towards indulgence and convenience, with consumers seeking pleasurable experiences and on-the-go products like ice cream.
The report suggests that brands can drive value and growth by focusing on the strategic integration of functional wellness ingredients, such as probiotics, to add value beyond pricing. Aligning products with consumer values, such as sustainability and ethical practices, can also resonate strongly with consumers and foster loyalty. Additionally, offering products that provide indulgence and convenience can cater to evolving consumer desires for pleasurable experiences.
In conclusion, the dairy industry can leverage these trends to innovate and expand by prioritizing quality, wellness, and consumer values while offering convenient and enjoyable products.
Comments