IFF unveils its Trends Report on the dairy market to identify the evolving consumer trends in the dairy and alternative dairy categories. The report is said to be derived from a comprehensive quarterly global survey of 21,000 consumers and monthly market data*, highlighting how brands can win over budget-conscious consumers by offering health benefits and resonating with consumer values.
“In the face of a global cost-of-living crisis, dairy and alternative dairy brands have found a silver lining by focusing on quality and value,” said Richard Neish, head of global futures, Consumer Intelligence at IFF.
“It is not about competitive pricing; it’s about delivering products that enhance wellness and align with consumer values ─ a strategy that is proving to be a game-changer.”
The report identifies five key trends that will drive market changes and product innovation with ‘BetterBeing’ as a leading trend, reflecting a significant shift in consumers’ health preferences. Six in ten (60%) respondents said they were always or often influenced by health labeling in their product choices.
Perfumer & Flavorist+ connected with Neish to discuss what these trends mean for consumer demands and how companies can capitalize.
What are consumers looking for in terms of flavor with this shift?
Richard Neish: One of the key trends identified in the report is ‘neo-hedonism’ —a shift towards pleasure-centric lifestyles. Our research found that many consumers are rewarding themselves more than they did before the pandemic seeking happiness and pleasure as everyday goals to bring delight and fun to their lives. This is clearly reflected in the dairy sector, where taste very much remains king, particularly in categories associated with indulgence, like ice cream.
How can companies capitalize?
Richard Neish: Companies can absolutely capitalize on the new focus on sensory pleasure, but the best strategy depends on both category and target demographic, in particular age. For example, while most customers still prefer traditional dairy flavors, zoomers and millennials are notably keener to experience new and unusual options, with their choices more inspired by social media than older cohorts.[1]
Meanwhile, older consumers tend to be more inclined to try new flavors on vacation, presenting an opportunity to tap into the ‘gastro-tourism’ market. However, bearing in mind that Gen X and Boomers are far more likely to choose traditional flavors than other demographics, it’s vital that brands highlight the authenticity of different cuisines when targeting older demographics.
Brands can also deploy flavor to enhance premiumization and indulgence and upsell standard products. Ice cream, for example, is seen by most consumers as an indulgent comfort food, and we’re seeing a lot of activity aimed at continuing this association, with nostalgia and premium versions of classic flavors a strong selling point. Alternatively, complex or unusual flavors can be used to appeal to adventurous consumers seeking novelty.
[1] GlobalData 2022 Q2 global consumer survey
