“Dairy is Ripe for Innovation”

/ / Business

As the dairy industry continues to suffer from low sales, could fermentation help the industry meet changing consumer needs? Functional dairy products (like fermented dairy) and animal-free precision fermentation products are major consumer trends for the dairy industry to adapt.

Functional dairy products are “ripe for expansion,” said Brad Schwan, vice president of Archer-Daniels-Midland Company, said brands have to invest in alt protein technologies to feed the future tech-savvy generation. Fermented dairy – like yogurt, kefir and fresh cheese – are all functional dairy.Fifty-eight percent of global consumers perceive a connection between gut function and other aspects of well-being. Consumers are looking for dairy with simple ingredient lists. 

 “The gut microbiome is a key growth area for functional, tailored offerings, as more consumers are making the link between their gut, digestive health and overall well-being,” Schwan added. 

Consumers are looking for dairy with simple ingredient lists. They want their dairy to support pre- and post-workout goals, energy solutions, hydration, digestive support and immune function.

More consumers are embracing a mix of an animal- and plant-based diet. Fifty-two percent of consumers eat a flexitarian diet now.

Alt protein – once seen as a fringe biotechnology – is becoming more mainstream. Brad Schwan, vice president of Archer-Daniels-Midland Company, said brands have to invest in alt protein technologies to feed the future tech-savvy generation.

“While consumer acceptance of alternative solutions beyond plant proteins is still building, we foresee digital-natives Gen Z and Gen Alpha leading the way in the growing acceptance of novel methods and technologies,” he said in a report on global food trends. “Additionally, the dairy industry is ripe for more innovation in the coming year, through leveraging both new technologies…As consumers grow more accustomed to seeing novel proteins from unexpected places, the alternative dairy arena will flourish with new possibilities.”

Read more (Dairy Reporter)