Dairy 2022: Sector Outlook

Published 14 March 2022

Author

Despite dairy producers facing continued competition from plant-based alternatives, the industry is holding its own, with the US alone charting an 11% increase in dairy retail sales in 2021 compared to 2019 (NZMP, 2022). To achieve this growth, dairy producers globally are doubling down on products that support consumers’ health goals, sustainability value, and desire for convenience and flavour play.

New Health Horizons

New Format & Flavour Frontiers

Planet-Friendlier Practices

Dairy brands are tapping into widespread health concerns by focusing on gut health and sugar reduction. Meanwhile, targeting flexitarian consumers, they’re developing dairy/plant-protein hybrid products that deliver on taste, texture and wellness values.

Summary

New Health Horizons	Dairy brands are tapping into widespread health concerns by focusing on gut health and sugar reduction. Meanwhile, targeting flexitarian consumers, they’re developing dairy/plant-protein hybrid products that deliver on taste, texture and wellness values.
New Format & Flavour Frontiers	Brands are playing with format and packaging to solidify dairy’s place at all meal occasions, from breakfast to dinner, as well as in the ‘snackscape’. Indulgent flavour play is also a key theme here, with producers playing on dairy’s innate creamy, buttery flavour profiles.
Planet-Friendlier Practices	Despite recent efforts to reduce its eco impact, dairy remains a major global greenhouse gas contributor. In 2021, it was responsible for 3.8% of the world’s emissions – almost twice that of the aviation industry (The Grocer, 2021). This has a clear knock-on effect on buying habits, with 55% of US consumers saying they would buy more from a dairy producer if they state sustainability as part of their mission (McKinsey, 2021).

Dairy 2022: Sector Outlook

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