A couple of months ago, I opined the success of the dairy industry has been underreported. This month, I have the numbers to back up this comment. 

I want to share some data that was presented during our March webinar, titled “Dairy Innovations Unveiled: Navigating the Hottest Trends in Product Development,” presented by Carrin Merkel, client services director at Curion Insights, and Gina Roberts, insights manager at SPINS.

Check out some of the fascinating facts from this webinar, currently available on www.dairyfoods.com. Some of the topics mentioned are not always discussed in the pages of the magazine. Let’s start with these nuggets presented by Merkel, who cites Kayt Sukel, writer for the Institute of Food Technologists (IFT). 

• Five years ago, Americans were drinking less than half a cup of milk per day: an all-time low for dairy consumption. 
• Though milk drinking wanes, retail dairy sales keep rising. 
• Dairy’s decline was overstated; the dairy case has evolved. 
• We now eat more dairy than we drink, with farmers producing more milk yearly. 
• Recent data shows growth in both dollar and volume sales across all segments.

Merkel also focuses on hybrid dairy, offering these tidbits, citing Sukel:

• Smug, by Kerry Dairy, blends oat and dairy for taste, functionality and sustainability.  
• Hybrid products present growth opportunities, especially in cheese and snacking. 
• Combining animal and plant proteins can enhance product performance. 
• Innovations in extended shelf-life, high-fiber, probiotic and fortified dairy, along with global cheeses, will drive consumer interest. 

Of course, it is impossible to avoid the health and wellness trend. Merkel looked at the latest Curion data to offer these insights:

Consumers are committed to healthier lifestyles and make their dairy purchases based on perceptions of health, primarily around protein-rich, lactose intolerance and digestive health. Examples of health driving dairy trends include cultured dairy (immune and gut health); dairy for weight management (low fat, low sugar; low calorie); premium cheeses for wellness (Omega-3’s, probiotics, vitamin D); and high-protein ready-to-drink beverages as a meal replacement.

Merkel adds that consumers are eager to try new dairy brands and products. 

• Millennials are the most open to try new products. 
• Successful brands must be conscious of the challenges of sustaining new success. 
• Flavor innovation is also trend setting 
• A hot product in 2025 will be plant-based cheeses.

In the future, consumer behavior will drive dairy trends, Merkel predicts. Here are some trends Curion is seeing currently.

• Snackification: More skipped meals, favoring quick dairy snacks for nutrition. 
• Personalization: Consumers want tailored dairy for taste, health and naturalness. 
• High Protein: High-protein dairy snacks aid health and fullness, which is great for meal replacement.
• Digestive Wellness: Lactose-free options meet digestive needs. 
• Clean Labels: Simple ingredients win, like Nestlé’s Natural Bliss creamer (milk, cream, sugar, natural flavors).

The growth of cottage cheese has been well publicized. But according to SPINS data for the 52-week period ending Jan. 26. sales of many other dairy subcategories are also performing beautifully. This includes A2 dairy, which was up 28%; high-protein drinkables (10 grams of protein per more per beverage) up 37%; high-protein yogurt (15 grams of protein or more per cup) up 40%; Greek yogurt up 15%; skyr up 31%; and frozen dessert and snack bites were up 65% on a year-over-year (YoY) basis.

On the plant-based front, SPINS reports significant advancement from pistachio milk, growing at a 71% YoY clip for the 52-week timeframe. 

Roberts predicts protein ice cream and probiotic culture cups could be the next dairy products driving growth. 

To sum it up: In her speech, Merkel succinctly states that “dairy is alive and thriving.” It is hard to disagree. The numbers simply don’t lie. 

In addition to Sukel, Markel cited Valeo Insights, Dairy Global, McKinsey and Co., Separators Inc., Mintel, US Dairy, Statista, and the USDA in her report.