Dairy is outperforming the rest of the retail store, Circana's Darren Seifer stated during "What's New in Ingredient Innovation," a panel discussion that took place Jan. 28 at IDFA Dairy Forum in San Antonio. 

Seifer, Industry Advisor, Consumer Goods and Food Service Insights for the research firm, pointed specifically to cottage cheese, which has enjoyed double-digit year-over-year growth. GLP-1 medication users could be a boon to dairy products as well, as 48% of consumers are seeking more protein. As more people take GLP-1 medications, there is room for growth in dairy product sales, Seifer suggested.

Seifer's comments were a prelude to a panel discussion, where he was joined by IDFA's Samuel Alcaine; Peggy Ponce, director of product innovation for Agropur U.S.; Venkateswarlu Sunkesula, Ph.D., vice president of research and product development for Idaho Milk Products; Kelly Lowe, global director of product research for Abbott Nutrition; and Eileen Thanner, chief operational officer for fairlife LLC.

Thanner mentioned that dairy products are in 90% of U.S. households and the health and wellness space could be big for the dairy industry, as high-protein, low-sugar products are in demand. 

Lowe added that the general consumer is looking more and more for health and wellness products, as well as those that maintain lean muscle mass as one ages, with Sunkesula stressing the industry can create many products with healthy benefits like vitamins and minerals. 

"Dairy is well positioned. We should be winning in health and wellness," continues Ponce. She added that this opportunity is so big because before, a lot of high-protein products were geared toward sports enthusiasts, but now, dairy products can cater to those who have battled obesity. 

"Dairy can provide a lot of protein in small sizes," she said. 

Seifer did caution that the side effects of taking GLP-1 medications is not yet fully known, with halitosis one of the few things sited thus far. 

Beyond GLP-1, Ponce noted sustainability is a goal when formulating ingredients, "but are consumers willing to pay for it?"

To which Seifer replied: "Sustainability is not a top concern for consumers. It is good to go after, but flavor and health profiles are much more important for consumers."

However, Seifer did not sustainability could be a point of differentiation among products. 

Future trends

Looking at the future of ingredient innovation, Ponce expects changing demographics will require new metabolic needs. "Dairy is well positioned for these changes," she said.

Lowe added the industry will focus on other functional benefits of dairy products, including immune and gut health. 

Thanner concluded that education is critical so that consumers understand the benefits of dairy, including the fact it is a "high-quality protein."