3 Trends Driving the Dairy Market

Netherlands—Innova Market Insights has announced its Top Trends in Dairy for 2021. The research shows that three trends are driving the market: immunity, functionality and mood. Product innovation, the company says, is geared towards consumers who care about natural nutrition.

“There is clearly ongoing potential for the dairy market,” says Lu Ann Williams, Director of Innovation at Innova Market Insights. “It remains one of the world’s most valuable food sectors, with a healthy, nutritious and versatile image and the potential for ongoing added value. However, the recent struggle with Covid-19 and a generally tougher consumer environment may prove challenging.”

Here, a closer look at the predicted trends:

  1. Immunity: Innova found that ongoing anxiety stemming from Covid-19 is pushing consumers to prioritize their immune health. Their expectation? Dairy products like yogurt and fermented drinks will be catch consumer interest. Combining those products along with other immune ingredients like antioxidants from fruits, herbs, and spices will be incorporated into flavor profiles.
  2. Functionality: In the search for functional nutrition, consumers have typically turned to products geared towards high protein, fiber-rich, and sugar-reduced, Innova says. Today, consumers are looking for more “complete” profiles that include dairy drinks offering “advanced” or “complete” nutrition that combine protein, low sugar and functionality.
  3. Dairy new product development around mood is seeing rapid growth, with rising use of on-pack claims relating to specific mood platforms, Innova says. Calming/relaxing and energy boosting are the most established platforms, while sleep promotion is still niche, but growing from a smaller base and showing potential for further innovation. The use of adaptogenic herbal extracts for combating the mental and physical effects of stress is also trending as upward interest in more holistic well-being develops.

Related: Natural Grocers Releases 2021 Trends
Whole Foods Market Releases 2021 Trends
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