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Bord Bia

GlobalData on Key Innovation Trends in Dairy: Part 1 -Plant-Based Dairy

04 October 2019

Mairead McKeown, Library Manager & Information Specialist, Bord Bia - The Irish Food Board

 

 

 

Image by Lisa RedFern on Pixabay

 

This FoodAlert, which is the first in a four part series, will look at the rise of plant-based dairy products as a key innovation trend in dairy. It will then conclude with GlobalData’s 3 innovation platforms for growth and set out key questions for Irish suppliers who wish to play in this space.

 

Big Brands are getting in on the action:

 

Today’s dairy market is adapting and responding to evolving consumer needs, with big brands getting in on the action. In 2016 Zizzi’s were the first UK chain restaurant to launch a cheesy vegan pizza (Zizzi’s, 2016)1. Continuing to break new ground, in Jan 2019 Zizzi’s launched the high street's first ever vegan four cheese pizza, Quattro No Maggio (Wright, 2019)2. Whilst IKEA are offering vegan oat smoothies on their menu (IKEA, 2019)3 and Starbucks has recently released a vegan macaroni and cheese in the UK market (Starbucks, 2019)4.

 

 

Demand exceeds supply:

Shortages in oat milk across the US and UK during March 2018 provided proof that consumer demand exceeded supply. In response to these shortages, and in order to future proof consumer demands for Oat milk, Otaly, the vegan milk brand increased production by 1,250% (Laurence, 2018)5. The year-on-year growth rate of soymilk consumption remains higher than milk across the last 10 years and the overall market value in the milk industry has almost doubled since 2007 ($8,157m to $13,659m in 2017), further illustrating the potential of plant-based dairy products (GlobalData, 2018)6.

 

 

 

 

 

Global Consumption:

When we look at consumption of soymilk and soy drinks, Asia is by far the greatest contributor, accounting for 63% of all global soymilk volumes versus 15% in Latin America, 10% in North America and 9% in Western Europe (GlobalData, 2018)7. Whilst Asian consumers may appear to be the most receptive to new products in this space, GlobalData highlight that new foreign entrants to the market should proceed with caution. Any new product launches would need to be innovative and have a clear point of difference in order to stand out in a market crowded with local brands. 

 

 

 

Variety & Future Growth:

The alternative milk market can cater to consumers looking for engaging experiences with a broad repertoire of varieties including almond, oat, rice, coconut, pea, quinoa and hemp. “Based on the slightly different flavour of each, anecdotally it seems that some consumers even prefer different milks for different uses” (GlobalData, 2019)8. A number of online guides which offer consumers help in deciding which milk alternative to use when, are now available online. Nestlé Professional in Australia has produced a Barista’s guide to Popular Plant Based Milk Options (Nestle, 2019)9. Whilst guides on pairing alternative milks with cereals (STAROSTINETSKAYA, 2019)10, and for use as an ingredient (Parsons, 2019)11 can also be easily accessed through a quick Google search. Grain, nut, rice and seed milk alternatives are expected to grow more than three times as fast as white milk and almost double the growth rate of soymilk until 2022 (GlobalData,2018)12. GlobalData says that the wide variety of uses available may be a key driver of this future growth.

 

 

 

 

“Be Inspired” By Those That Migrate Towards Dairy

(GlobalData, 2019)13:

 

 

Image by GlobalData

 

Chobani non-dairy yogurt drink launched in the US market, uses a coconut blend and is made from natural, non-GMO ingredients, without any artificial flavours, sweeteners or preservatives. It features probiotics and is claimed to contain 25% less sugar than the non-dairy alternatives of other brands. Positioned as healthier compared to its competitors, this product is likely to appeal to consumers who want to “feel better than well, today and tomorrow” (Bord Bia, 2018)14.

 

 

Image by GlobalData

 

Qwrkee Pea M'lk plant-based milk, is the latest addition to the range of plant-based milks on the UK market. Establishing a point of difference from other plant milks, Qwrkee advertises as “The most complete alternative to dairy, made from the purest pea protein isolate, lactose free and has the closest match to the vital nutrients and vitamins available in cow’s milk” (Qwrkee, 2019)15. This point of difference is likely to appeal to vegans and lactose intolerant consumers who don’t want to miss out on milk’s health benefits. This product also aligns closely with Bord Bia’s Consumer Lifestyle trend Health & Wellbeing (Bord Bia, 2018)16.

 

 

3 Innovation Platforms for Plant-Based Dairy Products:

 Marketing, Formulation & Packaging (GlobalData, 2019)17

The first thing to note is that plant-based milk drinks and yoghurt are the most relevant categories for this trend

 

Marketing:

• Market to younger generations, as they are the key drivers of this trend

 • Display any sustainability and ethical production credentials clearly

 

Key questions for Irish suppliers:

  • Are you dialling up on pack messaging that’s simple and easy to understand?
  • Vegan, organic, free from will all resonate well with 18-34 yr. olds
  • Are you communicating how your product can help consumers address their top health concerns?
  • Do you have a story to tell consumers about your sustainability and ethical production credentials and is it cutting through? In the majority of global markets younger consumers are coming through as the most cause driven when shopping (Bord Bia, 2018)18

 

Formulation:

  • Dairy-free, lactose-free, vegan friendly formulations are key
  • Exploring grain, nut, rice, and seed formulations is advised, as it is a growing, promising category

 

 

Key questions for Irish suppliers:

  • Do you have an innovation pipeline that’s agile and can respond to evolving consumer needs?
  • Do you have an NPD strategy to help consumers manage their health & wellbeing through targeted formulations? Brands that invest in R&D to solve particular dietary problems and public health concerns will win (Bord Bia, 2018)19
  • Can you surprise and delight consumers with new and novel moments of discovery? The global average of consumers who are always looking for new experiences and sensations that will liven up their everyday activities is up 4% since 2014, with younger consumers coming out in front (Bord Bia, 2018)20

 

 

 

 

Packaging:

  • Ensure that packaging is environmentally friendly
  • Avoid single-use plastic in favour of glass or carton packaging, or review how to make single-use plastic more sustainable, such as via advanced recycling schemes

 

Key questions for Irish suppliers:

  • Are you helping consumers to manage their worries about the effect their grocery packaging has on the environment?
  • Can you really afford not to use environmentally friendly packaging?
  • Have you or do you plan to switch from single use plastic to more sustainable alternatives?
  • Are you clearly communicating what can be done with your packaging to help consumers  ”live more responsibly” and keep them engaged? (Bord Bia, 2018)21

 

 

Irish suppliers who wish to grow their success in the plant-based dairy space should keep abreast of evolving consumer & market trends and innovate with products that are healthy for the consumer and healthy for the world, because this is the sweet spot where winners will thrive.

 

References:

  1.  Competitions & Latest news | Our Blog | Zizzi. (2016). Retrieved 3 October 2019, from https://www.zizzi.co.uk/blog/2016/vegan-and-dairy-free-mozzarella-alternative/
  2. Baxter Right, D. (2019). Retrieved 3 October 2019, from https://www.cosmopolitan.com/uk/worklife/g9207460/chain-restaurants-vegan-food-menu/
  3. MUNSBIT Oat smoothie - apple pear - IKEA. (2019). Retrieved 3 October 2019, from https://www.ikea.com/ie/en/p/munsbit-oat-smoothie-apple-pear-60363861/
  4. Starbucks®. (2019). Retrieved 3 October 2019, from https://www.starbucks.co.uk/menu/product/2122984/single?parent=%2Ffood%2Flunch%2Fhot-lunch
  5. Laurence, E. (2018). How Oatly will meet the demand for oat milk | Well+Good. Retrieved 3 October 2019, from https://www.wellandgood.com/good-food/oatly-increases-oat-milk-production/
  6. GlobalData Market Analysers. (2018). Retrieved 3 October 2019, from https://login.globaldata.com/Home
  7. GlobalData Market Analysers. (2018). Retrieved 3 October 2019, from https://login.globaldata.com/Home
  8. GlobalData. (2019). Top Trends in Dairy (p. 28). GlobalData.
  9. A Barista’s Guide to Popular Plant-Based Milk Options. (2019). Retrieved 3 October 2019, from https://www.nestleprofessional.com.au/training/baristas-guide-popular-plant-based-milk-options
  10. STAROSTINETSKAYA, A. (2019). 10 Exquisite Cereal and Vegan Milk Pairings. Retrieved 3 October 2019, from https://vegnews.com/2017/4/10-exquisite-cereal-and-vegan-milk-pairings
  11. Parsons, R. (2019). Which Milk for What Recipe: A Non-Dairy Milk Guide for All Your Cooking and Baking Needs. Retrieved 3 October 2019, from https://www.onegreenplanet.org/vegan-food/non-dairy-milk-guide-for-all-your-cooking-and-baking-needs/
  12. GlobalData Market Analysers. (2018). Retrieved 3 October 2019, from https://login.globaldata.com/Home
  13. GlobalData. (2019). Top Trends in Dairy (p. 29). GlobalData
  14. Health & Wellbeing - Bordbia. (2018). Retrieved 19 July 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/health-wellbeing/
  15.  Plant Based Pea M'LK Sweetened -. (2019). Retrieved 3 October 2019, from https://qwrkee.com/product/plant-based-pea-mlk-sweetened/
  16. Health & Wellbeing - Bordbia. (2018). Retrieved 19 July 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/health-wellbeing/
  17. GlobalData. (2019). Top Trends in Dairy (p. 3). GlobalData
  18. Responsible Living - Bordbia. (2018). Retrieved 3 October 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/responsible-living/
  19.  Health & Wellbeing - Bordbia. (2018). Retrieved 19 July 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/health-wellbeing/
  20. Engaging Experiences - Bordbia. (2018). Retrieved 9 April 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/engaging-experiences/
  21. Responsible Living - Bordbia. (2018). Retrieved 3 October 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/responsible-living/