From a spicy new cheese flavor, Creamy Jalapeño, The Laughing Cow’s first new wedge variety in five years, to creamy ice cream-inspired coffee drinks, to Danone North America’s snackable REMIX line of yogurts with epic toppings and mix-ins, today’s dairy cases feature All-American flavors like vanilla along with spicy-sweet flavors like honey and chipotle, fruit flavors and botanical flavors plucked from nature. 

The global food flavors market is expanding, with a projected worth of $21.3 billion by 2027, notes Chicago-based Datassential.

Consumer preferences for flavors can vary widely depending on demographic factors, cultural influences and evolving trends to capture both classic and exotic tastes, says Jennifer Zhou, global product marketing and senior director of flavors at Chicago-based ADM.

“This consumer behavior shift reflects a desire for familiar comforts alongside adventurous flavor combinations, such as chili-infused chocolate or cinnamon-spiced desserts. At the same time, consumers are increasingly drawn to flavors that offer a balance between indulgence and health-consciousness, such as fruit-forward options or combinations of salted caramel and espresso,” Zhou explains.

“We also see dairy brands turning to a range of extracts made from ingredients derived from natural sources, such as vanilla bean, citrus zest or floral essences like rosewater to enhance the flavor of dairy or plant-based alternative dairy offerings,” she adds.

When looking at flavors using a macro lens across all categories including dairy, trends fall into four basic buckets, notes Sydney Byrne, marketing manager for Sensient Flavors & Extracts, Hoffman Estates, Ill.

They are: tropical and exotic fruits, which have been big so far this year and will continue to help push the envelope for introducing unique flavors that capture consumer curiosity; botanicals and herbals, which bring a natural, better-for-you sophistication from a flavor standpoint, as well as associations with certain health benefits; a fascination with novelty and twists, including mashups, unexpected combinations, nostalgic flavors, and subtle twists like adding spice to something sweet or fusing unrelated cuisines; and global exploration, a strong trend that pushes the boundaries of consumers’ traditional taste preferences to include a broader range of cuisines from around the world.

“Cream cheese has gone beyond the basics to include spicy, sweet, herbal and savory flavors. Another trend we are seeing is the concept of different flavorings or unexpected bases, such as cottage cheese blends,” Byrne says. “Ice cream flavors are trending to more premium, indulgent experiences and are pulling from the beverage industry for inspiration at times. There is also a strong correlation between ice cream and coffee creamers. Both are exploring bakery-inspired flavors, going well beyond the typical cookie or brownie flavors to incorporate muffins, scones, pancakes, cannoli and more.”

Shannon Fitzgerald, marketing manager, Human Nutrition & Health for Balchem, expresses similar sentiments: “Slight nuances to familiar flavors are what consumers crave. For the more adventurous palate, consumers are embracing global flavors and street-food inspired flavors are gaining traction. Another trend is category blurring, bringing a known or even nostalgic flavor from other food categories into dairy beverages and desserts, e.g., bakery items or confection.”   

The Montvale, N.J.-based company offers an array of ingredients that align with health-conscious consumers, ranging from typical vitamins, such as A and D, to choline for brain health. “Balchem has endless flavor systems, flavors and other functional ingredients, to meet the needs of our customers; if it can be imagined, it can be created,” Fitzgerald says.

When sourcing ingredients, consumers are looking for sustainable, nutritious ingredients to meet the broader shift toward health-consciousness and environmental sustainability, says Jenn Adams, director of ingredient technology and applications for IFPC, St. Louis. These include plant-based proteins, organic produce and minimally processed natural sweeteners.

New products capitalize on flavor trends

New product development that aligns with aforementioned trends are going gangbusters in the dairy marketplace. One product in the ready-to-drink (RTD) category intended to unite consumers’ love of coffee and ice cream is a partnership between Unilever and Victor Allen’s Coffee. The new RTD iced coffees feature Magnum Double Caramel and Breyer’s Cookies & Cream for fans ready to enjoy an ice cream treat after dinner or a bottle of iced coffee on the way to work, the company says.

For consumers looking for a little bold spice in their cheese, The Laughing Cow released Creamy Jalapeño in response to a void in the snack cheese category featuring jalapeño, states Zach Fatla, brand director of The Laughing Cow. “We know bolder, hotter and unique cheese varieties are a top priority for consumers, which is why we are thrilled to be adding a spicy Jalapeño flavor to the delicious lineup of our creamy cheese wedges,” he says.

Consumers are also being transported south of the border with Mexican-inspired cheese like queso blanco, which is used in fried or grilled dishes because it doesn’t completely melt when exposed to heat. The crumbly queso fresco, on the other hand, typically tops off soups, tacos and salads.

A 2023 report from Chicago-based market research firm Mintel notes that 73% of consumers expressed an interest in seeing more spicy flavors on menus, 54% are interested in savory flavors, 53% desire new flavor profiles for dipping, and 51% want to see new flavored sauces for topping.

Hampstead, Md.-based Fuchs North America is diving into infinite possibilities for sauces, spreads and dips with a new seasoning collection, the Shareworthy Sauces and Spreads Collection. Released this spring, Shareworthy Sikil P’ak, Salsa Macha and Guasacaca seasonings “Create flavor solutions that reflect up-and-coming trends while also providing inspiration for flavor innovations that will leave consumers wanting more after every bite,” it says.

Matt Hettlinger, technical sales manager for Nelson-Jameson, points to the growing trend that goes beyond just fortifying milk with vitamins A and D.

“We are seeing the addition of Omega-3’s like DHA (docosahexaenoic acid) for brain health and development. These can be sourced from certain types of fish or algae. At Nelson Jameson, we have several types of DHA available depending on the application and labeling requirements,” he says. “Lactose-free continues to be a consumer demand. We also have enzymatic solutions for milk and fresh dairy producers to meet their customer’s request for more lactose-free products.”

Amplifying taste experiences

To cater to evolving consumer preferences, dairy companies are actively seeking innovative ingredients, flavors and extracts to elevate and push taste boundaries in yogurt, milk, ice cream, cream cheese and more. 

According to Portland, Ore.-based Allied Market Research’s “Flavor Enhancer Report,” the global flavor enhancer market is expected to grow to $20.4 million by 2032, nearly doubling from the $11.4 million in revenue in 2022 at a compound annual growth rate (CAGR) of 5.7%. 

Yet, the report states the health risks associated with artificial flavor enhancers and strong government regulations. At the same time, though, it notes the “escalation in demand” for flavor enhancers and innovations in umami flavors, which has a brothy or meaty savory taste.

Another Allied Market report, “Flavor Drops Market by Flavor Type (Fruit, Tea/Coffee, Chocolate, Lemon, Vanilla and Others), states that the global flavor drops market is expected to nearly double in the next 10 years, from $86.39 million in 2022 to $192.12 million, registering a CAGR of 8.6% from 2023 to 2032.

Priscila Guerrero, business development specialist, LATAM, at Global Organics, notes the Cambridge, Mass.-based food ingredient company cares about providing long-term solutions.

“Artificial flavor enhancers can be cheaper than the natural enhancers but the health risks are there. This is why they are regulated. We really focus on the organic ingredients as this is not only good for our health, but also has a good impact on the environment,” Guerrero says. “Organic vanilla is a natural flavor enhancer that can be used in many products. For example, in chocolate bars, it enhances the cocoa flavor naturally and therefore less added sugar can be used. A double win!”

Less added sugar in foods and beverages remains a top trend for health-conscious consumers. Smaro Kokkinidou, principal food scientist at Cargill, points out that the ingredient company’s newest sweetener system, EverSweet + ClearFlo, combines its premier stevia sweetener with a natural flavor.

“The resulting sweetener system offers wide-ranging benefits that include flavor modification and enhanced mouthfeel, along with improved solubility and stability in formulations, and faster dissolution,” she says. “At the same time, it helps manage off flavors from other ingredients used in formulation, including earthy and beany notes from plant-based proteins, bitterness from caffeine or vitamins, or metallic tastes from potassium chloride or other minerals.”

Additionally, because the sweetener system enhances characterizing flavor profiles, including light, fruity notes and rich chocolatey tones and doesn’t soften flavors like most flavor modifiers and maskers, EverSweet + ClearFlo mutes offnotes while enhancing many characterizing flavors, benefits that can translate into significant cost savings, Kokkinidou says.

When EverSweet + ClearFlo is used in no-sugar-added formulations — chocolate dairy drinks, Greek yogurt and chocolate — “We’ve witnessed noticeable improvements in mouthfeel, resulting in an indulgent, creamy product that’s a far cry from most options on the market today,” she adds.

The versatility of vanilla

The classic flavor of vanilla in vanilla ice cream or vanilla yogurt is the base for premier flavors and mix-ins. Yet, there is a difference when using pricier “natural” vanilla extract than synthetic vanilla essence, a more processed product made using artificial flavors and colors, explains Philip Caputo, marketing and consumer insights manager for Virginia Dare.

Founded in 1923, the Carteret, N.J.-based flavor company specializes in sweet flavors and extracts, including vanilla, chocolate, tea, fruit, herbals, and botanicals, as well as spicy flavors that pair well with sweet palates. 

“Consumers might be attracted to a functional benefit, but ultimately humans are sensory-seeking creatures. Natural vanilla extracts do cost more, but they contribute a rich, complex flavor, which can also have top notes depending on the variety,” Caputo explains. “Madagascar vanilla is sweet and creamy, whereas Ugandan vanilla offers earthier, cocoa notes. Natural vanilla also tells a story to customers: The beverage is made with high-quality ingredients with a sourcing story outside the lab. The right brand can lean into these elements to create a premium product that will stand out.”

In response to heavy usage by dairy processors, the global vanilla extract market is witnessing skyrocketing demand, from 2022 sales of $4.8 billion to a projected $7.8 billion by 2032, at a CAGR of 5%, states Allied Market Research.  

Helping dairy manufacturers develop cleaner labels is just part of FlavorSum’s expertise, with natural and organic flavor systems dominating its flavor portfolio. “We support formulators with solutions that align with their label claim goals, such as kosher (parve, dairy), non-kosher, halal, GMO-free and allergen-free,” says Sandra Wilson-Eamer, flavor development manager for Research & Development (R&D) at the Kalamazoo, Mich.-based company.

“We provide solutions across the dairy landscape including dairy (and plant-based) milks, creamers, yogurts, and yogurt drinks,” she says. “The bases of many dairy categories provide a versatile framework for flavors, and shoppers anticipate buying their favorite flavor or trying a new taste from the dairy aisle.”

Flavor modulation plays a pivotal role in flavor and product innovation. ADM offers its TasteSpark flavor modulation technology that formulators can use to improve the mouthfeel of plant-based alternative dairy offerings to better compare to true dairy products. The technology also supports rich flavor profiles that may be lost in reduced sugar, low-fat, dairy-reduced or dairy-free systems, says Sudarshan Nadathur, chief flavorist for Dairy & Proteins.

The company offers flavors, extracts, and distillates from natural sources. “We also combine different extracts to both mask offnotes and offset flavor imbalance, as well as support the overall target flavor profile. Our extracts ranging from vanilla to citrus, mint, pomegranate, and molasses each have distinct attributes that can elevate various flavor profiles across dairy applications,” he adds.

With several hundred dairy flavors in its library, Osage Food Products, Washington, Mo., is seeing the greatest demand from fluid milk or applications using milk or modified milk ingredients such as yogurt, ice cream, and cream cheese.  

“We have seen an increase in dairy companies seeking innovative flavors that only a few years ago might have seemed risqué. Pairings such as a Cinnamon Basil ice cream or Mango Hibiscus yogurt are a couple of examples,” says Ryan Neeb, director of Osage Flavors and Canadian Sales. 

While natural flavors tend to demand a premium price, Neeb stresses this isn’t always true. 

“Cost in use is the best way to calculate the impact a flavor has on a finished product. That is to say, the bulk cost of a flavor is generally less important than the quantity of flavor required to hit a desired flavor profile,” Neeb explains. “Our reimagined category of flavors is most notable with offerings such as Maple Brown Sugar, Baked Apple Cinnamon, Cereal Milk, Chocolate Hazelnut, and PB&J, just to name a few.”

Made with A2/A2 dairy and sustainably sourced regenerative organic ingredients, Alec’s Ice Cream unveiled nine new gluten-free and premium flavors using ethically and environmentally responsible ingredients. Flavors include Meyer Lemon Cookie, Triple Chocolate Blackout Cookie, and Maple Cardamom Candied Pecan. In the Certified Regenerative Product category, its Palm Springs Banana Chocolate Date Shake flavor, which contains regenerative organic certified bananas, sweet dates, cinnamon, and dark chocolate chips, won a 2024 NEXTY Award.

“I’m immensely proud of our team that has been working tirelessly to research and develop the most delicious flavor combinations, made with only the best ingredients,” said CEO and founder of Alec’s Ice Cream, Alec Jaffe. “By ensuring that our ingredients are regenerative and organic, we offer an unparalleled level of quality in our ingredient sourcing. Our dairy ice cream tastes fantastic, is good for the body, and is kind to the planet.”

Regardless of what flavors, enhancers or maskers dairy processors opt to use, ingredient suppliers with robust R&D teams are bringing more solutions than ever before.

For instance, ADM recently acquired Revela Foods, a developer and manufacturer of dairy flavor ingredients and solutions, enabling the company to further expands its ingredient pantry with more dairy-specific flavor formulations.

Ultimately, though, it comes down to taste. “Taste is what makes or breaks a product,” Virginia Dare’s Caputo says. “If we don’t have a flavor in our portfolio, we can easily make one since we’ve been developing flavors for 101 years.”

FlavorSum’s Lisa Jackson suggests that dairy brands win when they align innovation with functional needs and flavor preferences. 

While some dairy products have inherent functional benefits, others, like ice cream, have the opportunity to explore purposeful innovations,” Jackson notes. “For example, Mintel reports that younger generations are more willing to try energy-boosting ice cream [About 25% of 18-34-year-olds vs. 15% of all adults]. Brands with energy-boosting properties are either enriched with vitamins such as vitamin B12 (which contributes to normal energy metabolism) or contain caffeine.”

IFPC’s Adams concurs that dairy companies should stress the importance of innovation and adaptability in the flavor industry. She concludes, “As consumer preferences evolve, so must the offered flavors and ingredients offered too. Emphasizing sustainability, health, and authenticity in product development will be crucial for meeting future market demands.”