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Insight of the Day: Dairy trends unwrapped: Consumers seek added value, scrutinize claims

Updated: May 3

Key Takeaways

  • Quality over price:  Consumers are becoming less price-sensitive and increasingly prioritizing the quality of their food, including dairy products.

  • Scrutiny of labels:  Consumers are carefully reading labels and demanding transparency from brands about ingredients, health claims, and sustainability practices.

  • Value-added products:  Dairy products with functional benefits (e.g., probiotics, added protein) are gaining popularity as consumers look for food that both tastes good and supports their health goals.

  • Opportunities in desserts and ice cream:  Consumers may still seek indulgence in these categories, creating a space for innovation alongside healthier trends.

  • Pack size innovation:  Manufacturers need to address the varying needs of different demographics with different packaging sizes and formats.

Additional Trends to Consider

  • Plant-based alternatives:  The rise of plant-based milk, yogurt, and cheese continues to challenge traditional dairy. Brands will need to adapt to this shift.

  • Sustainability focus:  Environmentally conscious consumers are looking for dairy products with reduced environmental impact and sustainable sourcing.

  • Personalization: Dairy products that cater to individual dietary needs (e.g., lactose-free, A2 milk) offer a chance for niche market success.

  • Local sourcing: Consumers often favor dairy products with locally sourced ingredients or from smaller, more artisanal producers.

How Brands Can Respond

  • Emphasize quality ingredients:  Communicate the sourcing, processing, and overall value proposition of your dairy products.

  • Transparency in labeling:  Address consumer skepticism with clear ingredient lists and understandable certifications (e.g., organic, grass-fed).

  • Functional innovation: Invest in products that deliver specific health benefits beyond basic nutrition.

  • Sustainable practices: Reduce your environmental footprint and clearly

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