Dynamics of Dairy
In part four of Drinking Different, we check out the new and classic products in the dairy aisle to find what’s trending in dairy-based beverages.
Dairy products have been associated with health benefits since before the advent of modern dairy farming, becoming an essential part of daily diet over time. However, this perception has been changing over the last few decades putting milk under the scanner for added sugar and digestive issues, among other considerations. What does that mean for the dairy sector? How are dairy producers and manufacturers responding?
As evident from the numbers, the dairy industry is growing steadily. We delved into the factors driving growth in this sector in an earlier series, Driving Dairy. But what is different on the shelves now? Are consumers still buying the classic beverages or are new products taking over?
Milk reigns
Liquid milk continues to be the most consumed dairy product. But it is no more plain or white. New flavours have continued to be a differentiator with innovative use of ingredients and functional benefits taking the lead. Take India where the milk and flavoured milk industry is growing exponentially and neo-traditional flavours like turmeric milk are sharing shelf space with classics.
Allergen-free at source
A2 milk, a variety of milk free of A1 beta-casein protein associated non-lactose-related milk intolerance, is a new product on the shelves. A2 milk does not undergo any processing to remove allergens, it just comes from a special type of cows that are classified as A2. It is different from lactose-free milk, which is free of lactose sugars but still contains the casein and whey proteins.
Fortified for functionality
Fortification of milk and dairy beverages has grown to be commonplace in many countries, be it added protein, vitamins, or minerals. For example, milk in the United States is often fortified with vitamins A and D. Milk can be fortified with various other nutrients, including zinc, iron, and folic acid apart from proteins, a common value-add in milk and whey beverages.
Dairy goes hybrid
The growth of plant-based dairy alternatives tells its own story. But many consumers are not ready to give up dairy fully. And manufacturers are tapping into this trend with a new category: hybrid dairy – a blend of milk-based and plant-based ingredients combining the benefits and taste of both dairy and plant based.
Yoghurt reinvented
Yoghurt, once considered a food item, is a popular beverage today offered in multiple flavours with differentiated functional claims. From probiotics for gut health to added protein for improved nutrition, the products on offer are varied. And with the right packaging, manufacturers can differentiate their products further, be it with flexible, aseptic pouches or innovations like drinksplus that enables the inclusion of fruit pieces.
Beyond bovine
Cow is the only animal that comes to mind for most people when we talk about dairy, especially milk. However, goat milk, camel milk, and sheep milk have been consumed by humans for almost as long as cow milk – and they are now emerging as an alternative commercially too.
Sustainability all the way
Sustainability is a priority for both manufacturers and consumers across the dairy value chain – from sourcing to packaging and beyond with 73% of global consumers considering sustainability when buying dairy products. We, at SIG, can help meet this ask with our sustainable innovations, especially the SIGnature portfolio with its industry-first environmental credentials.
In the next part of this series, we move from dairy to the world of water exploring the trends around packaged water worldwide. Get the story in your inbox by subscribing to our exclusive bi-weekly newsletter, SIGnals Update.
- December 02, 2022