Mairead McKeown, Library Manager & Information Specialist, Bord Bia - The Irish Food Board
This FoodAlert, which is the third in a four part series, will look at how fascinating flavours are manifesting as a key innovation trend in dairy. It will then conclude with GlobalData’s 3 innovation platforms for success and set out important questions for Irish suppliers who wish to create products that align to this trend.
Consumers around the world are seeking “moments of discovery and delight that enhance their day” (Bord Bia, 2018)1 , whilst at the same time wanting to” eat drink & live to optimise their body’s systems, to feel better than well today and tomorrow” (Bord Bia, 2018)2. Fascinating flavours is the space where health and wellbeing meets the consumer need for novel and unique flavours.
Tangy, tart flavours:
Tangy flavours are enjoying centre stage in the dairy aisle and are being driven by trends in health & wellbeing and a consumer interest to experiment and explore with new flavours.
The popularity of tangy, fermented milk is most likely being driven by its perceived health benefits, with 8 in 10 of global consumers finding “good for digestion and gut health” claims in food and drink products appealing (GlobalData, 2016)3. Fermentation has recently been covered as a Real Route to Digestive Wellness in Bord Bia’s FoodAlert (Mc Keown, 2019)4. It’s also worth noting that 6% of global consumers also find sour/tart/tangy to be the most appealing flavour type in yogurts, which demonstrates that some consumers are attracted to fermented foods for perceived health benefits and the tangy flavour profile. (GlobalData, 2017)5
The year on year growth of fermented milk products over the last 10 years shows its growing market potential. In addition to this plain yogurt which embodies a tart flavour profile is set to outgrow fruited and flavoured yogurt between 2017 – 2022 in the set and frozen yogurt categories, see chart on Global: spoonable yoghurt volume (kg) five-year CAGR (%), 2017 – 22. (GlobalData Market Analysers)6
Tart drivers – where & who:
To explore the drivers of the tart trend, it’s important to understand the consumption by location and by demographic. In 2017 Asia and East Europe were the biggest consumers of fermented milk, each accounting for around one third of Global consumption, see chart on Global: preference for tangy/sour/tart flavour yoghurt, by region, 2017. (GlobalData Market Analyzers)7. In addition to this consumers in the Netherlands (18%), Indonesia (16%) & China (15%) find tart flavour profiles in yoghurt most appealing (GlobalData, 2017)8 . Brands should take note of the existing opportunities to innovate with tart dairy products in these markets. Research also shows that tart flavours are more popular with older consumers, see chart on Global: preferences for tart and tangy flavours in yoghurt, by age, 2017 (GlobalData, 2017)9.
Flavour fusions:
As more and more dairy consumers seek to experiment with new and novel flavours the time is ripe for innovation with flavour fusions, such as sweet and salty. 4% of the global population say that they find savoury flavours in yogurt the most appealing, whilst consumers in Latin America are most susceptible to savoury flavours. Taking demographics into consideration again, we learn that the appeal of savoury yoghurt dwindles with age see chart on Global preferences for tart and tangy flavours in yoghurt, by age, 2017.(GlobalData, 2017)10.
Fringe experimentalists: salty, bitter, spicy, and smoky yogurt flavours
The consumer quest to experiment with new & novel flavours goes beyond tart & sweet, with 2% of global consumers finding salty flavours in yoghurts appealing. The number jumps to 7% in the Middle East and Africa. Saudi Arabia must be highlighted as one of the top three markets for the majority of experimental flavours thus indicating an appetite for novel flavour profiles. GlobalData research also shows a higher propensity to unusual flavours amongst vegan and vegetarian cohorts, see chart on Vegan, vegetarian, and global averages for unusual flavour preferences in yoghurt, 2017 (GlobalData, 2017)11 .This presents an opportunity for dairy brands to target vegan/vegetarian consumers with products that meet their dietary needs and offer unusual flavours.
Be Inspired by those that experiment with fascinating flavours: (GlobalData, 2019)12
Milka Philadelphia cheese and chocolate spread, UK
Philadelphia with Milka came to the UK in April 2019 after enjoying success on the continent. According to Philadelphia senior brand manager Paola Cassinelli there’s a significant growth opportunity in the low-calorie adult snacking category. Milka Philadelphia, was launched in Asda in April 2019 at rsp: £1.64/150g, as a “savoury snack with a sweet treat” containing 85 calories per 30g serving. “Cheese and chocolate are two of the top five types of snacks consumed in the UK, meaning there is a great opportunity for the two brands to come together. Philadelphia with Milka is perfectly positioned to maximise this, creating a unique and guilt-free afternoon treat for shoppers with a delicious chocolatey taste. This sweeter addition to our range offers shoppers a unique sweet treat at under 100 calories” said Cassinelli (Graham, 2019) 13
He Run pomelo-flavoured fermented milk, China
This fermented milk has a tart taste, which is offset by its pomelo citrus flavour. The tart and tangy combination is unusual in the dairy sector, making this an innovative product. Pomelo which is also known as Chinese grapefruit, is sweet but is accompanied by a bitter tang.
3 Innovation Platforms for Fascinating Flavours:
Marketing, Formulation & Packaging (GlobalData, 2019)14
The most relevant categories for this trend are milk & yoghurt drinks
1. Marketing:
- Promote the health benefits of fermented foods
- Market savoury flavours to younger consumers and tart to older consumers
- Market to the right consumers in the right markets
Key questions for Irish suppliers:
- Are you dialling up on pack messaging that highlights the health benefits of fermented foods in language that’s clear and easy to understand?
- Are you marketing savoury flavours to younger consumers and tart flavours to older, more susceptible consumers?
- Have you carefully considered where to play? Some unusual flavours appeal to consumers in certain markets more than others, for example consumers in the Netherlands (18%), Indonesia (16%) & China (15%) find tart flavour profiles in yoghurt most appealing. Be informed about choosing where to play.
2. Formulation:
• Ensure that relevant products are vegan
• Tart flavours to consider could include: pomelo, yuzu, and fermented milk.
• Consider cheese paired with sweet flavours to capitalize on the popularity of sweet/salty.
Key questions for Irish suppliers:
- Do you have an innovation pipeline to cater to consumers with special dietary needs (vegan and vegetarian) AND an appetite for experimental flavours?
- Have you considered experimenting with tart flavours such as pomelo, yuzu?
- How can you create a flavour fusion that marries sweet & salty?
3. Packaging:
- Curiosity is the driving force in trying new flavours, so packaging should be eye-catching to invoke this in consumers.
- The novelty element could be a vehicle for testing innovative packaging formats, such as more sustainable options.
Key questions for Irish suppliers:
- Does your packaging design appeal to the curious consumer?
- Is your packaging stand out disruptive, eye catching & novel?
- Have you experimented with more sustainable packaging formats which are healthy for the environment?
Irish suppliers who innovate with dairy products that help consumers eat & drink to optimise their bodies systems and surprise & delight them with fascinating flavours, will be better prepared to meet the future needs and wants of consumers in the dairy aisle.
You may also be interested in part 1 and part 2 in this series
References:
1. Engaging Experiences - Bordbia. (2018). Retrieved 9 April 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/engaging-experiences/
2. Health & Wellbeing - Bordbia. (2018). Retrieved 19 July 2019, from https://www.bordbiaconsumerlifestyletrends.ie/trends/health-wellbeing/
3. GlobalData 2016 Q4 global consumer survey. GlobalData
4. Mc Keown, M. (2019). 7 Routes to Digestive Wellness. Retrieved 18 October 2019, from https://www.bordbia.ie/industry/insights/food-alert/watch--read---7-routes-to-digestive-wellness/
5. GlobalData 2017 Q1 global consumer survey. GlobalData
6. Global Data Market Analysers. GlobalData
7. GlobalData Market Analysers. GlobalData
8. GlobalData 2017 Q1 global consumer survey. GlobalData
9. GlobalData 2017 Q1 global consumer survey. GlobalData
10. GlobalData 2017 Q1 global consumer survey. GlobalData
11. GlobalData 2017 Q1 global consumer survey. GlobalData
12. GlobalData. (2019). Top Trends in Dairy (p. 30). GlobalData.
13. Graham, R. (2019). Mondelez launches Philadelphia variant with Milka chocolate. Retrieved 18 October 2019, from https://www.thegrocer.co.uk/new-product-development/mondelez-launches-philadelphia-variant-with-milka-chocolate-/592820.article
14. GlobalData. (2019). Top Trends in Dairy (p. 30). GlobalData.