Description

“Dairy is a kitchen mainstay being called upon again to help consumers during an inflation-induced return to home kitchens. Despite price increases that outpace other categories, the omnipresence and relative affordability of dairy categories secures their central place on shopping lists. Instead of taking this privileged position for granted, brands can emphasize their value by delivering on the convenience and simple pleasures gleaned from flavor innovation and by reclaiming dairy’s identity as an original functional food.”

– Mimi Bonnett, Senior Director – US Food, Drink and Flavors and Ingredients

This Report will look at the following areas:

  • Dairy alternative ingredients of interest
  • Interest in sweet flavors in dairy and dairy alternatives
  • Interest in savory flavors in dairy and dairy alternatives
  • Important dairy and dairy alternative attributes
  • Dairy and dairy alternative preferences

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
          • Executive Summary

              • Top takeaways
                • Market overview
                  • Figure 1: Category outlook, 2022-27
                • Opportunities and challenges
                  • Consumers want benefits from their dairy and dairy alternatives
                    • Figure 2: Important dairy/alternative attributes – Any rank, 2022
                  • Dairy alternatives have a unique exploratory draw among women
                    • Figure 3: Dairy alternative ingredients of interest, by gender, 2022
                  • Women are willing to indulge in flavored creamer
                    • Figure 4: Sweet flavors of interest – Creamer, by gender, 2022
                  • Butter (and other dairy) can get on board
                    • Figure 5: Butter boards, 2022
                  • Key consumer insights
                  • Market Factors

                    • Veganism remains low, but interest among under 45s suggests growth
                      • Figure 6: Dietary preferences, Vegan, by age, 2022
                    • Younger generations less likely to tie dairy to health
                      • Figure 7: Dairy attitudes, by age, 2022
                    • Dairy prices experience some of the starkest inflation
                      • Figure 8: Changes in consumer price indexes for food – Percentage change, 2020 through 2023
                    • Cooking fatigue will benefit flavored products
                      • Figure 9: Dairy launches featuring mix-ins, 2022
                    • Immune health remains a top goal/concern
                      • Figure 10: Dairy launches that feature functional claims on pack, 2022
                      • Figure 11: Dietary health benefits/priorities, 2022
                      • Figure 12: Kid-focused dairy launches that feature functional claims on pack, 2022
                      • Figure 13: Top children’s health and wellbeing concerns, 2021
                  • Competitive Strategies and Market Opportunities

                    • Ground cheese innovation in the familiar
                      • Figure 14: Cheese launches* ranked by the attribute “Tasty,” 2022**
                    • It’s time for butter to spread its wings
                      • Figure 15: Butter launches* ranked by the attribute “Tasty,” 2022**
                    • Look to ghee to boost butter health cred and profile
                      • Figure 16: Ghee launches, 2022
                    • There’s more to chocolate milk
                      • Figure 17: Milk launches* ranked by the attribute “Tasty,” 2022**
                    • Next Milk and Wondermilk stand out by blending in
                      • Figure 18: Plant-based milk blends, 2022
                    • Popularity of strawberry variation suggests room for incremental yogurt innovation
                      • Figure 19: Yogurt launches* ranked by the attribute “Tasty,” 2022**
                    • Familiarity leads for creamers, but venture into indulgence
                      • Figure 20: Creamer launches ranked by the attribute “Tasty,” 2022*
                  • Product Development – Now – What’s Trending

                    • Cheese
                      • Vast majority of cheese launches are unflavored, consumers want variety
                        • Figure 21: Leading flavors in cheese launches*, 2020-22**
                      • Hormone-free leads cheese claims, dairy must boost functional claims
                        • Figure 22: Leading claims in cheese launches*, 2020-22**
                      • Butter
                        • Calling out specific salt varieties gains popularity in butter, go further
                          • Figure 23: Leading flavors in butter launches*, 2020-22**
                        • Low/no claims lead among butter launches, consider supercharging it
                          • Figure 24: Leading claims in cheese launches, 2020-22**
                        • Milk
                          • Flavored milk is seeing growth, it’s time to get more adventurous
                            • Figure 25: Leading flavors in milk launches*, 2020-22**
                          • Allergen claims leapfrog over fortification claims in milk, diluting power
                            • Figure 26: Leading claims in milk launches*, 2020-22**
                          • Yogurt
                            • Fruit and vanilla lead yogurt launches
                              • Figure 27: Leading flavors in yogurt launches*, 2020-22**
                            • Allergen claims lead among yogurt launches
                              • Figure 28: Leading claims in yogurt launches*, 2020-22**
                            • Creamer
                              • Creamers move in the right direction when it comes to flavor
                                • Figure 29: Leading flavors in creamer launches, 2020-22*
                              • Low/no claims lead in creamer launches, consumers want more
                                • Figure 30: Leading claims in creamer launches, 2020-22*
                            • Product Development – Near – What to Watch For

                              • Cheese
                                • Novelty flavors see fastest growth in flavored cheese but don’t forget the basics
                                  • Figure 31: Fastest growing flavors in cheese launches*, 2020-22**
                                • Non-dairy cheese continues to expand, category attempts to get it right
                                  • Figure 32: Dairy-free cheese launches that highlight dairy-based inspiration, 2022
                                  • Figure 33: Fastest growing claims in cheese launches*, 2020-22**
                                • Butter
                                  • Garlic butter will be an easy add-on
                                    • Figure 34: Leading flavors in dairy items on menu – Butter, Q1 2022
                                  • Premium butter can be an accessible upgrade
                                    • Figure 35: Butter launches with premium positioning, 2022
                                    • Figure 36: Fastest growing claims in butter launches*, 2020-22**
                                  • Milk
                                    • Holiday flavors are a route for milk
                                      • Figure 37: Milk launches* featuring holiday positioning, 2022**
                                    • Milk launches answer the call for functionality
                                      • Figure 38: Fastest growing claims in milk launches*, 2020-22**
                                    • Yogurt
                                      • ’Tis the season for yogurt, move beyond the packaging to the flavor
                                        • Figure 39: Fastest growing claims in yogurt launches*, 2020-22**
                                      • Creamer
                                        • Fast growing creamer flavors name the drink
                                          • Figure 40: Fastest growing flavors in creamer launches, 2020-22*
                                        • Plant-based creamer launches double from 2020-22
                                          • Figure 41: Fastest growing claims in creamer launches, 2020-22*
                                      • Product Development – Next – What’s in the Pipeline

                                        • Cheese
                                          • Fresh flavors and heat see growth in cheese at foodservice
                                            • Figure 42: Fastest growing flavors in dairy items on menu – Cheese, Q1 2020-Q1 2022
                                          • Butter
                                            • Anything’s possible with butter
                                              • Figure 43: Fastest growing flavors in dairy items on menu – Butter, Q1 2020-Q1 2022
                                            • Yogurt
                                              • Foodservice lays the groundwork for savory yogurt, expanded occasions
                                                • Figure 44: Leading flavors in dairy items on menu – Yogurt, Q1 2022
                                            • The Dairy/Alternative Consumer – Fast Facts

                                              • 98% of US adults consume dairy, 53% dairy alternatives
                                                • Almond is the dairy alternative favorite ingredient
                                                  • Flavor interests vary across categories
                                                    • Clear nutritional claims are necessary for appeal
                                                      • There are many paths to invigorating dairy
                                                      • Dairy and Dairy Alternative Consumption

                                                        • Milk/creamer drive dairy alternative consumption
                                                          • Figure 45: Dairy and dairy alternative consumption, 2022
                                                        • Women are more likely than men to eat non-milk dairy products
                                                          • Figure 46: Dairy consumption, by gender, 2022
                                                        • Dairy alternatives (and exploration) are the purview of younger consumers
                                                          • Figure 47: Dairy and dairy alternative consumption, by age, 2022
                                                      • Dairy Alternative Ingredients of Interest

                                                        • Almond leads dairy alternative ingredients of interest
                                                          • Figure 48: Almond Breeze Extra Creamy, 2022
                                                          • Figure 49: Dairy alternative ingredients of interest, 2022
                                                        • Oat has strong audience in women aged 18-24
                                                          • Figure 50: Dairy alternative ingredients of interest, by gender and age, 2022
                                                      • Savory Flavors of Interest

                                                        • Interest in savory flavor innovation is strongest in dairy alternatives
                                                          • Figure 51: Savory flavors of interest, 2022
                                                        • Cheese
                                                          • Veggie-forward cheese flavors appeal to women, men like spicy
                                                            • Figure 52: Savory flavors of interest – Cheese, by gender, 2022
                                                          • Pesto, onion and Cajun appeal across age groups for cheese
                                                            • Figure 53: Savory flavors of interest – Cheese, by age, 2022
                                                          • Value cheese brands will have strongest appeal with spicy flavors
                                                            • Figure 54: Savory flavors of interest – Cheese, by financial situation, 2022
                                                          • Butter
                                                            • Caramelized onion butter interest suggests potential for shortcut mix-ins
                                                              • Figure 55: Savory flavors of interest – Butter, by age, 2022
                                                          • Sweet Flavors of Interest

                                                            • Consumers seek sweet indulgence from creamer
                                                              • Figure 56: Twix Coffee Mate, 2022
                                                              • Figure 57: Sweet flavors of interest, 2022
                                                            • Yogurt
                                                              • Younger yogurt eaters have a sweet tooth
                                                                • Figure 58: Sweet flavors of interest – Yogurt, by age, 2022
                                                              • Indulgent flavors will go far in economy yogurt brands58
                                                                • Figure 59: Sweet flavors of interest – Yogurt, by financial situation, 2022
                                                              • Cream cheese
                                                                • Cream cheese eaters age 55+ aren’t drawn to flavored options, let’s play
                                                                  • Figure 60: Sweet flavors of interest – Cream cheese, by age, 2022
                                                                • Creamer
                                                                  • Women are willing to indulge in flavored creamer
                                                                    • Figure 61: Sweet flavors of interest – Creamer, by gender, 2022
                                                                • Important Dairy/Alternative Attributes

                                                                  • Protein/vitamin/minerals lead attributes of interest
                                                                    • Figure 62: Important dairy/alternative attributes – Any rank, 2022
                                                                  • Men prioritize protein
                                                                    • Figure 63: Dairy launches promote protein on front of pack, 2022
                                                                    • Figure 64: Oikos Pro, 2022
                                                                    • Figure 65: Important dairy/alternative attributes – Any rank, by gender, 2022
                                                                  • Fat/sugar awareness increases with age; sustainability interests young adults
                                                                    • Figure 66: Farmer spotlight, 2022
                                                                    • Figure 67: Important dairy/alternative attributes – Any rank, by age, 2022
                                                                  • Vitamin/mineral fortification is a value-add for the cost-conscious
                                                                    • Figure 68: Important dairy/alternative attributes – Any rank, by financial situation, 2022
                                                                • Dairy/Alternative Preferences

                                                                  • A quarter of category participants are interested in hybrid products
                                                                    • Figure 69: Dairy/alternative preferences, 2022
                                                                  • Fewer than half of 18-24s like the taste of dairy milk
                                                                    • Figure 70: Kerrygold presents: Making the Grade, 2022
                                                                    • Figure 71: Dairy/alternative preferences, by age, 2022
                                                                • Appendix – Data Sources and Abbreviations

                                                                  • Data sources
                                                                    • Consumer survey data
                                                                      • Abbreviations and terms
                                                                        • Abbreviations

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