Dairy innovation trends: From weight management to protein

Health and wellness

With GLP-1 medications becoming commonplace, foods that provide satiety while majoring on a natural, clean-label profile are poised to be on consumers’ radar. In June 2024, Danone CEO Antoine de Saint-Affrique said weight-loss drugs were likely behind a surge in protein-rich yogurt sales. Q1 2024 sales data supported this, with the French dairy giant seeing a 4% YoY increase in sales. Fage – the Greek company behind yogurt brand Total – also saw a 16% increase in sales in Q1 2024. Plain yogurt also has a low glycaemic index, making it a suitable source of protein, calcium or probiotics for people who are watching their blood sugar levels.

Analysts expect around 31.5 million people to adopt GLP-1 medications in the US alone by 2035; that’s about 9% of the US population.

Besides supporting weight-loss, full-fat yogurt has been linked with reducing the risk of developing type 2 diabetes – with the US Food and Drug Administration agreeing there’s enough scientific evidence to support a qualified health claim that producers can use on-pack.

Manufacturers should be careful not to overwhelm shoppers with health claims, however, notes Mintel. Jenny Zegler, Director of Mintel Food & Drink, said: “Expect to see an increase in nutrient-dense product innovations to improve short- and long-term health. The importance of getting the basic nutrition needed each day will be a widespread lesson that will exceed the reach and use of weight-loss drugs. Starting in 2025, brands will need to streamline packs overloaded with health claims to the critical nutrients they contain. Promoting well-known essential nutrients will also differentiate products in an age of nearly infinite access to information – and misinformation.”

And lest we forget mental wellness. ADM notes that consumers are chasing positive emotions, and food and beverages can go a long way to nourishing body and soul; here, producers can work with colors and flavors that could evoke positive emotions but be wary of keeping their label clean by sourcing natural ingredients, since  62% of consumers globally consider choosing natural foods the best way to ensure a healthy diet, according to Innova.

Besides yogurt, lactose-free milk, naturally high in protein products such as cottage cheese, and fermented dairy such as buttermilk and kefir have also caught consumers’ attention as better-for-you foods.

Functionality

With health and nutrition on the forefront of consumers’ minds, adding nutritional value and functionality to dairy products could open up new opportunities for food producers. As seen at SIAL Paris 2025, manufacturers are adding high-protein SKUs to popular fermented dairy products such as kefir; and there’s vitamin-enhanced gouda for health-conscious cheeselovers.

The application of the bioactive protein lactoferrin is also likely to expand from infant and adult nutrition into consumer products such as yogurt and dairy beverages.

And with advancements in processing and encapsulation technology, it is now possible to explore a new category of RTD dairy beverages enhanced with live cultures, vitamins and minerals but not requiring refrigeration.

All being well, communicating the benefits of added functionality would be crucial for consumer acceptance, Mintel warns. “Brands that remind shoppers of inherent health benefits will also offer clarity to busy, cost-conscious shoppers who might already question the value of functional formulations with claims that are not as obviously felt as functional energy, digestive or high satiety claims.”

Lactose-free dairy

Lactose-free milk has been clawing back market share from plant-based dairy alternatives, we heard at SIAL Paris 2025 as consumer groups such as flexitarians see free-from as a healthy choice.

In the US, the category surged 11.6% in sales and 2.6% in volume terms in the past 6-12 months (latest 52 weeks ending May 19 2024) according to Circana.

With milk being the best-selling category of lactose-free dairy, 2025 could see format and ingredient innovation that would take lactose-free milk to the next level; for example, by formulating RTD beverages designed for the on-the-go consumers.

Animal-free dairy

Several food tech startups such as Those Vegan Cowboys and some dairy majors such as the Bel Group are gearing towards launching either ingredient solutions such as fermentation-derived casein or fully-fledged dairy alternatives in 2025 that contain no dairy ingredients derived from a cow.

Investment in fermentation has also been on the increase, with the Good Food Institute reporting startups raised €49m in the first six months of 2024, up from €33m in the entire 2023. The uptick in fermentation investment indicates a renewed focus on scale-up, with big names such as Danone, Fonterra and Leprino Foods all making moves in the segment.

And in plant-based, technology such as machine learning is likely to enhance innovation, too; with players like Climax Foods working with cheese major Bel to make superior dairy-free cheese that is both nutritious and delicious.

• Also see:
• Danone gets hands-on with precision fermentation
• Fonterra makes waves in the animal-free ingredients space
• Leprino Foods to branch into non-animal casein
• Formo, Those Vegan Cowboys, partner to bring cost parity with cow-derived casein

Format innovation

With convenience remaining a top consumer purchasing driver, format innovation would be key to tapping into emerging trends.

From yogurt pouches to cooking-sized portions of butter, manufacturers have been experimenting with delivering dairy in formats that are both accessible and appealing.

Beyond protein

High-protein was projected to be the fastest growing segment within dairy yogurt this year, with a growth rate of 17.2% according to Circana. In the UK, protein-heavy dairy recorded a 44.2% year-on-year growth in 2023 to reach a valuation of £117m, according to IRI data.

And there’s still plenty of runway for the category. For example, producers of cottage cheese – a naturally protein-rich dairy product – can dial up label claims or experiment with natural flavors and colors.

Ice cream brands such as Greece’s Kri Kri are also taking note by launching high-protein SKUs; and start-ups such as East Coast-based Smearcase have taken the DIY cottage cheese ice cream trend into the grocery store.