With demand for handy and nutrient-dense snacks rising, dairy is well-positioned to capitalize on progress within the wholesome snacking section.
The worldwide class is valued at north of $108bn and set to almost double to $195 billion by 2035 (Supply: Priority Analysis). Within the US alone, the dairy snacks and beverage class generated $5bn in gross sales (Supply: SPINS) and is predicted to develop at a CAGR of 9.3%.
That is fueled by rising demand for pure, high-protein meals that present satiety whereas supporting holistic well being objectives, together with weight administration and energy and muscle improvement.
#1: Protein
Dairy is a compelling alternative for customers seeking to improve their protein consumption because of being a supply of full proteins (containing all 9 important amino acids).
Classes that supply concentrated protein content material – akin to skyr and strained yogurt – have skilled vital progress lately, supported by rising developments akin to weight administration along with holistic wellness.
Cottage cheese has additionally continued to stir the market of wholesome snacks after rising as an unlikely TikTok sensation.
Excessive-protein cheese codecs from slices to dehydrated cheese bites and bars have additionally continued to emerge as manufacturers search to faucet into demand from on-the-go customers or add worth to conventional staples.
#2: Fermented dairy goes mainstream
Constructing on yogurt’s strengths in protein and satiety, fermented dairy merchandise akin to kefir have seen sturdy demand from customers up to now yr.
Useful drinks are the fastest-growing section inside intestine well being, making the dairy sector inside ripe for growth.
Probiotic drinks have gotten more and more sought-after as intestine well being stays one of many high well being goals for customers, second solely to power (Supply: SPINS).
And with weight administration persevering with to dominate headlines, dairy majors akin to Danone and Lactalis have put a recent spin on cultured dairy by releasing formulations that cater to the wholesome wants of this rising client cohort by fortification with nutritional vitamins and fiber.
#3: Sugar discount and clear labels
Dairy already enjoys the well being halo of a minimally-processed, pure meals class. However in segments akin to flavored milk, yogurt, espresso creamers and plant-based alternate options, manufacturers are more and more responding to client demand for less complicated ingredient lists and extra pure formulations.
Refrigerated creamers made with 5 elements or much less have gotten mainstream within the US, the place the class has grow to be the fastest-growing refrigerated dairy area within the business.
And in plant-based drinks, corporations are pivoting to kitchen cabinet elements to ship easier formulations that will compel health-conscious customers to stay with dairy alternate options.
#4: Meal snackification
The expansion of snack-friendly codecs can be rewriting how customers eat.
As buyers proceed to hunt out meal alternative merchandise, dairy elements akin to whey and casein maintain the most important share of the worldwide meal alternative market. Busy life and the burden administration pattern will likely be key drives of the meal alternative market, which is projected to be a $30bn+ market by 2030, in accordance with The Enterprise Analysis Firm.
Codecs akin to yogurt pouches, cheese bites, and single-serve pots additionally cater to demand for on-the-go snacking.
And there’s scope for growth in each the refrigerated and ambient – with technological developments akin to microencapsulation now permitting for product innovation that brings purposeful elements akin to probiotics out of the fridge.
#5: Well being meets sustainability
Whereas affordability has put demand for sustainable dairy below strain, manufacturers that command each pure and eco-friendly claims proceed to win favor with customers.
Investing in certification to empower on-pack claims needs to be a key precedence for manufacturers that operated within the natural, regenerative, or grass-fed dairy area as these claims bolster model worth and gross sales alike, in accordance with SPINS.
Utilizing upcycled elements akin to whey permeate might be a powerful USP for high-protein snack manufacturers; whereas sustainable packaging enhancements might help meet regulatory necessities in addition to contribute to a producer’s long-term ESG objectives.
Conclusion
And there you could have it: wholesome dairy snacking is gaining momentum as customers proceed to hunt out protein-packed, pure and clean-label meals to succeed in their holistic well being goals: whether or not that’s consuming nicely on-the-go or sustaining a nutritious diet as a part of their holistic wellness efforts.
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