As global inflation and GDP growth rates decline, the dairy products and alternatives industry expects low value growth in 2024, although the forecast period looks more promising. In this context, private label is expanding as consumers prioritise affordability, while dairy products are increasingly integrated into fast-growing snacking occasions driven by busy lifestyles. Additionally, with consumers seeking health benefits and valuing sustainability, the plant-based segment continues to grow.
This report comes in PPT.
Dairy manufacturers must recognise the diverse health benefits consumers seek from dairy products. This includes prioritising probiotics and gut health, expanding kefir offerings, providing high-protein options and addressing the needs of lactose-intolerant consumers. Additionally, there is increasing interest in dairy's role in supporting mental health.
Dairy producers should explore new ways to provide value for those with busy lifestyles, positioning dairy products as convenient, healthful meal replacements with high protein content. Brands should consider both at-home and on-the-go consumption occasions of time-strapped consumers, especially targeting urban areas where younger consumers seek convenient nutrition.
Plant-based dairy manufacturers are increasing their portfolios with sophisticated, functional innovations, incorporating new flavours and health benefits, such as high protein, cholesterol lowering and immunity. Industry players must focus on high quality, taste and moderated price gaps versus traditional dairy products, to face challenges such as a return to natural products.
As food inflation is expected to persist in the coming years, consumers will keep on looking for value-for-money options. Private label is expected to keep on growing in value share, as players continue to expand their portfolios and consumers who try them realise their similar quality to that of established brands.
As catastrophes related to climate change continue to intensify, consumer concerns are expected to increase. Trying to have a positive impact on the environment, consumers are choosing locally-sourced dairy products for their claimed environmental credentials, while major dairy players are adopting strategies to reduce their ecological footprint.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!