What's driving dairy?
In part one of our new Driving Dairy series, we look at how the dairy industry is performing today as well as the challenges and opportunities ahead
For many countries and cultures around the world, dairy has long been a staple food source. But with the advent of plant-based dairy alternatives, a growing awareness of health and wellness, and other generational shifts in diets, dairy producers today are having to overcome a number of challenges to keep up with changing consumer trends and demands. So the question is just how well is the dairy industry performing today?
Despite increasing competition and evolving trends, demand for dairy remains high. In fact, the global dairy product market is expected to be worth $587.5bn by 2027 – indicating growth of almost $130bn from 2020. How? Put simply, the industry is adapting to and addressing shifting tastes with everything from flavoured milks and lactose-free dairy offerings to fermented products and much more.
In recent decades, dairy brands and producers have had to diversify to keep up with growing consumer trends, while making their processes more environmentally conscience and their output more efficient. Here are some of the key factors at play…
A sustainable future
As the world becomes more aware of the environment and animal welfare, many consumers have been seeking out products with a lower carbon footprint, and whose ingredients can be traced from farm to table. For some dairy producers, this means switching to foods and beverages that can be sold under the organic segment, the likes of which tie in with consumer perception of sustainable practices.
Health and wellbeing
Over the years, consumers have gradually shifted to products which improve their health. With this in mind, dairy producers are having to counter a growing belief that dairy doesn’t fall into the ‘clean eating’ movement. And with the desire for healthier lifestyles driving much of the consumer demand for non-dairy, the dairy industry has responded with more low-fat and lactose-free dairy products as well as protein-enriched milks.
Convenient living
Today’s consumers want products that will easily fit into busy, on-the-go lifestyles. And for this, they’re often willing to pay a premium. To meet the growing demand for more mobility and convenience, dairy producers have had to offer a wider choice of more single-serve food and beverage products. Ones that come in easy-to-hold packaging and also offer a longer shelf life.
A deep dive into dairy
There are myriad other factors at play, such as a rise in people with lactose intolerance as well as a growing global middle class with more disposable incomes – something we’re increasingly seeing more of in so-called developing countries.
Throughout our Driving Dairy series, we’ll take a deep dive into what’s moving the industry forward and why. And we’ll look at some of the latest dairy products and categories to hit the market to help compete with the boom in non-dairy drinks and brands.
Don’t miss part two when we’ll put the spotlight on the global – and lucrative – health and wellness market. With such weight behind this segment, how are dairy producers adapting their products to meet this demand? And what can consumers expect in the future?
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- January 11, 2021