investigating innovations and trends in dairy and dairy substitutes
Chicago Non-dairy milk is driving the industry in one of the plant-based categories with the quickest rate of growth: dairy alternatives. This was discussed at the Natural Products Expo West Virtual Week session titled “Discover Dairy & Dairy Alternatives: Trends & Innovative Products” on May 24.
According to Adrienne Smith, senior food business writer at New Hope Network in Boulder, Colorado, plant-based innovations in cheese substitutes are expected to represent the “next frontier.”
Technological developments in ingredients and processing are driving innovation in dairy substitutes. Although consumers may have been let down by early plant-based dairy products, the goods of the following generation are performing far better in terms of meeting sensory expectations. They have also advanced to the point where they are now copying the value-added claims made by high-end real dairy brands in an attempt to better connect with today’s consumers who are concerned about sustainability and health. This involves the creation of dairy substitutes for particular applications, such as home baristas and finicky eaters, in addition to superior craftsmanship described by terms like “artisan” and “small batch.” Formulators of dairy alternatives are attempting to steer clear of the lengthy ingredient lists and frequently unattractive Nutrition Facts that producers of plant-based meat have come under fire for. In the world of dairy alternatives, simplicity and cleanliness are key.
According to Arthi Padmanabhan, market research manager at New Hope Network, “a greater percentage of US shoppers value reducing animal-based foods in the diet over increasing consumption, though most make no specific effort.” “Boomers have the highest indexes of avoiding animal-based products; however, Gen Z has the highest rates of avoiding dairy products.”
This is probably the outcome of both Gen Z maturing and becoming more independent consumers, as well as product advancements over the previous few years. According to Ms. Padmanabhan, marketers of alternative dairy products ought to target younger customers with goods that cater to their demands.
“Label claims represent important real estate on the products,” stated Scott Dicker, SPINS, Chicago, market data analyst.
Based on SPINS analysis of IRI data, the combined dairy milk, cheese, creamer, and yogurt sector exhibited an 8% increase in label claims for the 52 weeks ending April 18, 2021. The label claims for these items’ plant-based counterparts increased by 18%.
With the exception of labeled animal welfare, labeled claims in genuine dairy are not performing as well as the average (8%), according to Mr. Dicker.
During this time, claims related to animal welfare accounted for around $351 million, a 13% increase over the prior year. The other tracked claims, which included no-added hormones valued at $1.8 billion, grass-fed valued at $494 million, non-GMO valued at $3.9 billion, and organic ingredients valued at $3 billion, all only demonstrated a 4% rise in use.
Organic ingredients are the fastest-growing label claim in the plant-based dairy market, with a value of $555 million, up 19% from the previous year. The most common label claim is non-GMO ($3 billion, +17%), followed by vegan ($1.6 billion, +15%) and gluten-free ($2.7 billion, + 18%).
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Dairy is fulfilling the demands of several popular diets, such as paleo, keto, and low-FODMAP. Alternatives are popular among paleo, Whole30, and keto dieters, even though most would be avoided on a low-FODMAP diet—an eating regimen that excludes fermentable short-chain carbs present in many plants.
According to Mr. Dicker, more and more dairy substitutes are positioning themselves as vegetarian options as opposed to vegan options. This makes goods like casein-containing plant-based cheese and honey-sweetened plant-based milk possible.
A further examination of the non-dairy milk segment revealed that, although almond milk continues to lead, oat milk is catching up. Brands of oats are concentrating on performance, nutrition, and sustainability in order to better compete with actual dairy.
Ms. Smith stated, “Other grains to watch include hemp, flax, and barley.” Oats are now used in a wide range of other plant-based dairy products in addition to milk. Keep an eye out for new combinations and a persistent focus on sustainable practices and pure components.
She clarified that producers of plant-based dairy products are improving their offerings by adding extra nutrients, protein, immunity-boosting substances, and adaptogens.
According to Ms. Smith, “plant-based is no longer enough on its own as consumers now seek more functional benefits in every sip.” “The challenges of taste, texture, and nutrition are still being addressed by brands in the plant-based dairy industry, as they continue to innovate and produce more gourmet, artisanal, and specialty products.”
The market for plant-based cheese has seen a lot of activity in the last year. It all comes down to determining the ideal stretch and meltability. Nuts, beans, and plant-protein fermentation are creating new, unique cheese types that can be soft, fresh, matured, and have short ingredient lists.
According to Ms. Smith, “the real dairy category is innovating, too.” “Marketers have made a significant social commitment to fostering customer trust in dairy products. This entails conveying to customers a clear message about our mission, sustainability, and openness.