GLOBAL TRENDS IN DAIRY

While allergies, health concerns and environmental considerations have led to a worldwide increase in dairyfree alternatives, many consumers continue to opt for traditional dairy products. Natalya Latypova, managing director of Glee Hospitality Solutions, examines the state of the industry and the major trends shaping it.

The practice of dairy farming extends back thousands of years, but it wasn’t until the 20th century that we saw the massive innovation that transformed dairy farming into the large-scale operation it is today.

According to Statista, the global dairy market is valued at USD 871 billion and is projected to grow to USD 1.13 trillion by 2026. However, in light of evolving customer tastes and the emergence of factors that have affected both the dairy market and the farming process itself, a number of trends have become evident in recent years that are directing the flow of this global multibillion-dollar industry.

Dairy trends

Two key trends have emerged in recent years. On the one hand, it is evident that global demand for dairy-free products has steadily increased, owing to a number of factors that include, among others, the rise of veganism. Dairy-free alternatives, such as soy, oat and almond, have all witnessed market growth, fueled by innovations that have made them more convincing in terms of taste and appearance. An increase in customer demand for sustainable sources of farming and health have also driven demand for dairy-free alternatives, with large-scale farming having increasingly come under public scrutiny.

With the advent of the internet and greater awareness of the impact of large-scale farming, higher numbers of concerns are being raised about dairy farms suspected of contributing negatively to the environment. However, there has also been a rise in demand for traditional high-quality dairy and smallbatch items, such as artisan cheese.

According to the Dairy Food Global Market Opportunities And Strategies To 2031: COVID-19 Impact And Recovery report, despite processed cheese being the largest segment of the cheese market by type, accounting for 63.7 percent of the total market in 2021, the natural cheese market is expected to be the fastest-growing segment, growing at a CAGR of 9.2 percent during 2021-2026. As mentioned previously, the traditions of dairy farming go back thousands of years; in certain regions of Italy, France and elsewhere, there are entire recipes and time-honored practices that revolve around authentically sourced and prepared dairy ingredients. Cheeses like authentic buffalo mozzarella and ricotta are integral to authentic Italian cuisine and will always be sought after as the sole components of ‘’true’’ recipes of the highest caliber.

Micro farming

A trend that in part addresses both the aforementioned issues, namely the concern for sustainable farming, while remaining true to long-established culinary traditions, is micro farming. With micro farming, dairy farmers are now able to build a farming structure that focuses on the well-being of their livestock and a sustainable output, while providing a high-quality product that addresses many of the concerns of the modern consumer. This ties in with heightened demand for organic produce over conventionally sourced nonorganic items. Customers want to know that they are getting their dairy products from sources that promote and advocate sustainability and quality over profitability and generic mass production.

Small batch production has seen an increase across various industries and has begun to take serious strides in the provision of small batch dairy produce, such as yogurt, cheese and even items like cheesecake. Much like micro farming, small batch production favors smaller scale, higher quality products that are able to earn greater trust from sustainability-conscious consumers.

The growing perception that dairy products promote better health has, ultimately, generated higher demand in the market.

Health and well-being

The pandemic forced us focus on our well-being and rethink our bad habits. These days, gut health is a topic we hear a lot about, and many of us are aware of the way in which improving it can decrease the onset of various ailments that include heart disease and hypertension.

Several dairy products, such as yogurt, contain probiotics that are great for gut health. Furthermore, protein, calcium and vitamins can be found in milk and cheese.

The growing perception that dairy products promote better health has, ultimately, generated higher demand in the market.

Dairy’s here to stay

In spite of the rise in dairy-free alternatives, there are still opportunities in the dairy segment that can be leveraged. The challenge lies in understanding that sustainability now stands at the forefront of consumers’ minds, and it is imperative for the dairy industry to ensure that these concerns are addressed. High-quality dairy products that reflect authenticity and integrity are popular nowadays, and form part of a prominent trend that can be explored further. Customer perception may be seen as the driving force for the future of the dairy industry, so the essential components that bolster demand need to incorporate greater health benefits, sustainability and trust, above all else.