Dive Brief:
- Daypart targeting and high-protein products are two key trends impacting the dairy industry today, according to a new report from Canadean presented at the Dairy Innovation Summit in Amsterdam earlier this month.
- Top consumer and innovation trends that will influence dairy product development and marketing this year include targeting niche consumer groups, creating new eating and drinking occasions for dairy, and snacking on the go, according to the report.
- The report also highlighted how manufacturers are using sensory pleasure by infusing spicy flavors into products like ice cream and yogurt in addition to the growth of alternative milks derived from nuts, grains, rice, and seeds, which now reach far beyond typical soy and almond milk products.
Dive Insight:
As growth has slowed for certain product categories, such as Greek yogurt and cereal, companies have begun looking outside of the traditional eating occasions for their products to identify new pockets of growth.
But yogurt isn't the only dairy category looking to expand its daypart targeting. Milk has also often been relegated as a morning time and breakfast drink, unlike soda, which consumers might drink throughout the day. By adding protein and other ingredients, such as chia seeds, milk can turn itself into a more functional beverage that acts as a beverage-based snack or meal replacement.
High-protein products along the dairy aisle was part of the mass appeal of Greek yogurt, which ended up taking over about half of yogurt sales. Plant-based proteins are especially receiving a lot of attention from manufacturers looking to add more functionality.
As much as protein is an industry buzzword today, acquisitions of high-protein product manufacturers has been surprisingly low, according to Anthony Valentino, deputy editor at Mergermarket. Hormel acquired CytoSport, maker of Muscle Milk, in 2014, Hershey bought Krave last year, and General Mills acquired protein snack maker Epic Provisions earlier in 2016.