According to a recent Technavio report, the global low-fat dairy beverage market is expected to grow at a rate of over 3% CAGR during 2018 – 2022.
Growing Health Concerns
One of the key drivers for the growth is the increase in health-conscious consumers, especially in younger demographics. As consumers are looking for products that are low in fat and calories, they might opt for a low-fat dairy beverage over other dairy products.
“Globally, the number of consumers indulging in fitness activities is rising and is expected to increase the demand for low-fat dairy beverages during the forecast period. Consumers are prepared to pay premium prices for products with various functional benefits. This increasing demand for food and beverages with low-fat content is expected to help the market’s growth during the forecast period,” said a senior analyst at Technavio.
Trendy Flavors
Additionally, the introduction of new flavors into the market is a key emerging trend that is growing the market. Younger consumers, in the age group of 15-30 years, are setting the trend experimenting with new flavors.
Though flavors such as strawberry and chocolate have been on the market for decades, newer on-trend flavors have begun to merge. At Product Expo West, Alexandre Family Farm featured its ginger turmeric, along with its caramel and chocolate milks. Regional milk brand Harris Farm offers similar flavors, including coffee, blueberry and orange crème. Larger companies like Prairie Farms are even embracing the flavorful milk market, releasing limited edition Peeps flavored, orange crème and strawberry crème milks.
