International Dairy Forum 2018: An Oasis of Untapped Opportunity

Consumer trends and innovation in the consumer-focused dairy space were some of the underlying themes of this year’s Dairy Forum, which invited participants to ‘Shape the Future’. Consumers are the new movers and shakers for the dairy and the food industry at large, and those who follow them closely will reap the benefits.

What can dairy do for you?

Steve Lerch from Google gave a good one-line summary of the dominant trend among the younger generation: “Strong is the new skinny.” These trend-setters, making up one-third of the population, feel exercise is important to their identity and not only want to know about the nutritional qualities of their food but also about its functional properties—i.e. will this food help me exercise better, recover faster, lose weight, or be healthier? Brands that affirm these questions are more likely to build brand loyalty with their consumers. Products such as whey protein shakes and bars are already holding a prominent place in the USD 28bn sports nutrition industry[1]. Within the existing trends there is still room to grow, so tapping into the sports nutrition functional food realm remains a great opportunity for the dairy industry.

[1] Zion Market Research, 2017

If you’ve got it, let them know

Until recently, many dairy brands marketed their products through so-called ‘what it’s not’ campaigns: fat-free, rBST-free, etc. In truth, if your competitors are marketing their milk as ‘gluten-free’, you’ll have to follow suit. It is often easier to cater to the consumer's pre-conceived notions and worries about food than to educate them. However, younger consumers respond much better to a message that hones in on the positive attributes of the product. In other words, tell consumers what your milk is full of, such as healthy protein and calcium, and not what it is not.

‘Insta-worthy’ dairy trends

86% of consumers use their mobile phones to make a shopping list, while 59% use their phone while shopping, according to Steve Lerch. There are over 500m food blogs and websites[2] and 69% of all millennials take pictures of their food before eating. Allowing consumers to purchase, read up on, and interact with their food and the brand through a mobile phone is the best way to grab their attention and ensure their loyalty.

To conclude, opportunities lie ahead for all in the dairy industry if we can understand and tap into new consumer trends.

[2] Rabobank estimate based on BlogSearchEngine.org

Author: Aga Dobrowolska Perry