Dairy innovation and trends

Letter from the editor: Innovations, trends & startups reshaping the dairy category

By Elizabeth Crawford

- Last updated on GMT

The dairy case is no longer a limited selection of fat-free, low-fat or whole milk in generic white bottles or a bare-bones choice between just “orange” or “white” cheese – rather an explosion of innovation in recent years has dramatically multiplied consumer choice.

Now shoppers can select from a new generation of milk that is ultra-processed, high-protein, low-sugar, grass-fed, plant-based and even animal-free – just to name a few. Likewise, consumer interest in better-for-you options are opening doors for ice cream, yogurt and other dairy categories.

In this month’s dairy trends special edition, FoodNavigator-USA explores how food, beverage and ingredient innovators are redefining dairy and rethinking how it is produced and marketed.

For example, the founder of Maple Hill joined me in a special edition of FoodNavigator-USA’s Soup-To-Nuts podcast​ to discuss the business proposition for 100% grass fed dairy, which he acknowledged is “tough segment but to play in, but worthwhile” for its sustainability, animal welfare and enhanced nutrition.

Senior Correspondent Ryan Daily also explored the health benefits of dairy, including how yogurt is breaking free of its association with gut health​, where it has long been pigeon-holed, and how frozen desserts​, like ice cream, are becoming prized for more than indulgence.

Innovations in alternative-dairy are also reshaping the segment, as Deputy Editor Deniz Ataman reports in her pieces on plant-based milk​ and emergence casein made via precision fermentatio​n ​to enhance the taste, texture and nutrition of animal-free dairy.

Despite the flurry of alt-dairy options in recent years, there is still room for growth – especially for consumers navigating digestive health challenges and allergies, as one dietitian explained to me. She notes an unmet need for more clean label, simple and allergen-friendly plant-based options ​to align with emergence of the low-FODMAP diet and a spike in IBS cases.

Check out all the details of these stories and more by clicking through on the headlines below or if you are a FoodNavigator-USA subscriber by checking your inbox for the special edition on dairy trends.

If you are not yet a subscriber, register for our free newsletters​​, which include daily news, weekly podcasts and monthly special editions on timely topics.

Special Edition: Dairy trends – from zero-sugar to ‘animal-free’ to plant-based

Soup-To-Nuts Podcast: What is the business proposition for 100% grass fed dairy?​ – ​Research and advocates for 100% grass-fed dairy suggest the practice is better for people, the planet and animals – but is it better for business?

11 startups disrupting dairy across categories from the farm to store shelf​ – ​Dairy’s nutrient density and decadent eating experience create a powerful canvas for startups innovating across categories to offer better-for-you moments of permissible indulgence while simultaneously supporting the health of consumers, the planet and local economies.

What’s the scoop on frozen dessert trends?​ – Consumers are swapping frozen yogurts for sorbets as better-for-you brands push into the ice cream market, despite slowdowns in the plant-based ice cream and novelties segment, according to SPINS data.

Yogurts appeal beyond gut health, as coconut options gain in popularity​ – ​Consumers are buying yogurt for more than gut health benefits, including for protein and indulgence, as shoppers turn to coconut-based as their preferred plant-based yogurt despite general slowdowns in the category, per research from market research company Spate.

Got milk [alternatives]?​ – ​Milk alternatives are the most consumed product in the category, particularly among Gen Z consumers, while hybrid dairy products help narrow the gap for those skeptical of plant-based options' taste, texture and nutritional profile

Why buy the cow? Animal-free casein grows to drive the future of dairy alternatives​ – ​The growing interest in animal-free casein, the key protein responsible for the flavor, texture, and nutritional profile of conventional dairy, is driving innovation in the alternative dairy space as a solution that replicates dairy’s complex qualities while addressing environmental and ethical concerns.

A new way to scale precision fermentation: Daisy labs teams with dairies to produce bioidentical proteins – ​Foodtech startup Daisy Lab is rethinking how to scale precision fermentation efficiently and economically to produce bioidentical dairy proteins without the cow by developing plug-and-play technology that can be dropped into existing, large-scale dairy manufacturing.

Unmet need in plant-based dairy revealed with rise of low-FODMAP diet​ – ​The influx of plant-based milk in recent years could provide relief and stability for consumers suffering from irritable bowel syndrome, but there remains a significant unmet need for clean-label, allergen-free options, according to one registered dietitian nutritionist.

 

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