The Future of Protein Includes Dairy

 

U.S. consumers are drinking less milk with each passing year, but overall dairy sales are on a multi-year winning streak. Cheese, butter and yogurt are fueling category growth, along with new dairy-based products designed to capitalize on convenience, health and snacking trends. These products are starting to combine dairy and plant ingredients in order to pack in the protein in order to appeal to the 20% of Americans who are following a high-protein diet, as reported by the International Food Information Council in its 2024 Food & Health Survey. 

Data from market research firm Circana shows the refrigerated dairy aisle has been the largest category in retail grocery over the last year with $76 billion in sales. Over the past three years, dairy retail sales have notched a growth rate of 15.4% or $10.1 billion.

According to a new report from CoBank’s Knowledge Exchange, the outlook for retail dairy sales remains strong with additional room for growth as consumer preferences and purchasing behaviors evolve. Products tailored to meet consumers’ growing desires for healthy, protein-rich snack products have emerged as a new growth opportunity.

The report says that over the next three years, approximately 90% of people have no plans to reduce their dairy product purchasing behavior. Dairy’s growth has not all been driven by recent price inflation either. Dairy product consumption has grown by 7.7% on a per capita basis for a compound annual growth rate (CAGR) of 0.8% over the past decade, moving from 606 to 653 pounds per person on a milk-fat equivalent basis based on USDA data.

“Dairy products have a diversity of applications and innovative dairy processors are leveraging that to their advantage,” said Corey Geiger, lead dairy economist with CoBank. “The healthy snacking category is a growing megatrend that dairy products can capitalize on with a host of conveniently packaged solutions from low-fat cheeses and specialty yogurts to functional dairy drinks.”

Yogurt, for example, has moved from being a morning meal to becoming an anytime snack or healthy dessert choice. Per capita consumption in the U.S. has grown 142% over 25 years, with Greek yogurt pacing category growth. Yogurt brands are also capturing new sales as consumers step-up use of weight-loss drugs. Danone attributes a jump in demand for its high-protein, low-calorie yogurts, at least in part, to consumers under treatment with those drugs or just trying to manage their weight or wellbeing.

CoBank food and beverage economist Billy Roberts said consumer concerns around highly processed foods and preference for clean labels are areas where traditional dairy products can resonate, particularly with younger demographic groups.

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“One of the things we’ve learned from following the plant-based food sector is that long ingredient legends are an obstacle for many younger, health-conscious consumers,” said Roberts. “Dairy products are generally perceived as having clean labels with few ingredients. Dairy brands can capitalize on that with the right product mix and marketing.”

Take note, according to the IFIC survey, only 5% of Americans follow a flexitarian diet and 3% follow a vegetarian diet, which grew from 2% last year. Both of these diets include dairy. Only 2% follow a vegan diet, and 3% follow a plant-based diet, which is down from last year. 

The future of dairy is to have all types of foods be made with dairy, even plant-based foods. Lenny & Larry’s, a primarily plant-based sports nutrition company, does it with its new Dip’d Wafer Bar and The Boss Cookie. 

The American Dairy Products Institute (ADPI) is making it easier for food and beverage formulators to “Make It With Dairy,” the association’s new scientific-based information hub. Check it out HERE. 

“ADPI is expanding its ingredient portfolios to be at the forefront of providing powerful tools and resources through ‘Make It With Dairy,’ as an ongoing effort to promote the world-wide use of dairy ingredients,” said KJ Burrington, vice president of technical development at ADPI. “Having in-depth knowledge of dairy ingredient applications and functionality can be a valuable asset to product developers. This knowledge will help product developers select the right dairy ingredient to fit the food application and accelerate their product development process.”

These latest resources outline dried dairy ingredient selection by food application and functional properties along with a composition guide that summarizes key details from the ADPI library of ingredient standards. And as new dairy ingredients become available, they will be added to the online tool. 

In case you missed it, today’s blog sponsor, Idaho Milk Products, received the 2024 Breakthrough Award for Dairy Innovation for its IdaPlus 1090, a protein used in ready-to-drink (RTD) beverages with an impressive 24-month shelf life. The award was presented at the 2024 ADPI/ABI Annual Conference on Tuesday, April 30.

Founded in 2009, Idaho Milk Products was the realization of the vision of a small number of progressive dairy farmers in southern Idaho. The vision extended to a state-of-the-art milk processing plant in Jerome, Idaho, targeted at high-specification dairy ingredients. Notably, the first bag of milk protein concentrate (MPC) was created in February 2009. Since then, the business has grown operationally and commercially with its milk protein isolates (MPI) and customized ingredients being utilized by food industry customers domestically and internationally.

IdaPlus 1090 possesses significantly greater solubility than standard milk protein concentrates, MPCs and MPIs, leading to faster dispersion and hydration, even at colder processing temperatures, the company states. This results in smoother, less grainy mouthfeel and less chalkiness, according to Dr. Venkat Sunkesula, vice president of product research and development. Beverages experience improved viscosity, including maintaining low viscosity over shelf life and higher heat stability, reducing the occurrence of gelling. In addition to improved texture, consistency and flavor, manufacturers have encountered shorter make times and the potential to remove stabilizers, resulting in lower costs and cleaner labels. The future growth potential of these types of items is bright.

IFT FIRST 2024: Five Take-Aways about the Future of Food Ingredients

 

I thought it was flattering that the recycle bins in McCormick Place feature dairy products. They must know that these products are being consumed in large quantities and consumers need to be made aware of their recyclability composition. 

Amazing to see so many of you in my hometown—Chicago--at The Institute of Food Technologists’ (IFT) Annual Event and Expo. Last week I projected that the 

overarching theme of this year’s show would be “Doing More with Less.” And it was. Some suppliers focused on cleaning up labels by replacing chemical additives with multi-functional natural solutions. Others focused on natural techniques—ingredients and processing aids—to make food safer and healthier. And, of course, cost-reduction solutions were plentiful. 

There was also so much more shared during the education portion of the conference, as well as during side bar conversations. These Five Take-Aways are the Future of Food Ingredients.

1. Molecules invisible to the naked eye—think Microorganisms, Enzymes and Gases found on the Periodic Table of Elements—will be the driving force behind ingredient production. While some of these ingredients may be “new,” many will simply be ingredients we are all familiar with, yet made in a process that is more friendly to the earth. These technologies will also assist with improving the current range of dairy and meat alternatives. 

2. The other technology that will assist with improving food is Artificial Intelligence (AI). It is the future of “new” ingredient development. It’s the future of health and wellness. 

Think about this. One hundred years ago, ingredient technology and food science focused on fueling the body. The emphasis was on affordable, good-tasting calories, not nutrition. Then the world got automated, and we no longer needed all those good-tasting calories.  Enter the obesity crisis.

“The modern food system is unhealthy and old,” said Nora Khaldi, chief executive officer, Nuritas, Dublin, Ireland, during a keynote panel discussion at IFT FIRST. “It’s because of the ingredients being used in these foods. These foods were built for taste and cost, not nutrition.”

That is changing. The only way for the change to happen in an efficient manner and help feed the growing population is to make AI part of the team. 

Read more about this HERE in an article I wrote for Food Business News based on the panel discussion Khaldi participated in at IFT FIRST.

3. FDA is staying away from defining, clarifying or even addressing the conversation about Ultra-processed Foods, according to James Jones, FDA deputy commissioner of Human Foods, during another keynote address at IFT FIRST. But there are efforts to ban ingredients on national basis—vs. only at the state level—as well as planned updates on sodium reduction targets, the “healthy” claim for food product labels and front-of-pack nutrition information later this year. This includes the development of a “healthy” logo.  

“Nutrition is really a very big priority for us,” said Jones. “This is an area where I think some of the things that we are doing will lead the people like yourselves—innovators--to innovate in a way that allows your company or your customers to meet the framework that we’re creating.”

To read more from Jones’ presentation, link HERE to a Food Business News column written by my colleague Russell Redman. 

Jones emphasized the need for food formulators to continue to make more nutritious food. This includes reducing sodium, sugar and saturated fat contents. 

4. Health implications associated with rapid weight loss from GLP-1 drugs was a quieter, but very active conversation at IFT FIRST. And after the expo, at the Chicagoland Food and Beverage Network’s “Mid-Year Industry Update” networking event held at the Edelman offices on July 18, my colleague, Keith Nunes, editor of Food Business News, shared some recent insights he obtained earlier in the week on the future of GLP-1. 

He explained that the pharmacy companies are working very hard to improve the current delivery method of GLP-1 and that capsules/tablets are probably only about five years out. These will be more affordable and easier to obtain. 

“The pharmaceutical companies are not looking at nutrition,” said Nunes. “For the food industry, this scares me.”

There are so many unknowns, including malnutrition, rapid muscle loss, bone degradation and other unintended consequences from use of these drugs. Food companies need to focus on nutrient density to provide more nutrition for fewer calories to assist consumers with their weight loss journey.  

5. That leads me to the fifth and final take-away from IFT FIRST. That’s Protein. There were many discussion regarding the fact that protein is the only macronutrient that has not been demonized, and this it likely change. There were no specifics, yet. But higher protein diets, along with increased intake of plant proteins—and all the phytonutrients and other compounds they include—may impact the human body in ways we have no idea, yet. 

The contents of this IFT FIRST will go down in history as a pivotal time in food science. It’s changing, and fast. Either embrace the change or switch careers. And put on your seatbelt. We are in for a wild ride. 

IFT FIRST 2024: Explore how the overarching theme speaks to IFIC’s recent consumer findings

 

A big welcome to my amazing hometown Chicago, which is where The Institute of Food Technologists (IFT) is headquartered, and is also hosting its Annual Event and Expo starting Saturday, July 14, and ending Wednesday, July 17. This food science, technology and innovation conference will feature more than 1,000 exhibitors from across the food system sharing the latest in ingredient, equipment, processing, technology, safety, R&D and packaging solutions. 

From the myriad of exhibitor press releases I received the past few weeks, along with reviewing the educational program, I’ve determined that the overarching theme of this year’s event is “Doing More with Less.” 

This theme covers multiple consumer trends, as identified by the 2024 Food and Health Survey from the International Food Information Council (IFIC). The survey showed that American consumers (n=3,000) continue to rank taste (85%) as the most impactful element in their food and beverage purchase decisions. Price remains the second most impactful (76%), followed by healthfulness (62%), convenience (57%) and environmental sustainability (31%).  

Nine in 10 (90%) respondents said they have noticed an increase in the price of food and beverage. This recognition is up significantly from 83% in 2022.  It’s no wonder that food companies are trying to “do more with less” in order to keep prices down. 

VISIT INGREDION AT IFT FIRST, BOOTH S1131

IFT FIRST attendees can expect to see a lot of cost-cutting initiatives from ingredient suppliers, as well as technologies to assist with reducing food waste. This may come in the form of cultures and enzymes as natural preservatives, as well as antioxidants and plant extracts that help extend shelf life. This includes the shelf life of dairy foods, namely yogurt and other cultured products. 

Expect to see many suppliers focusing on their sustainability programs and claims marketers can make. This includes discussions on sustainably grown ingredients. All types of farmers are looking for ways to do more with less. 

Plan to attend “What Scientific Advancements Are Leading the Way in Sustainable Food Production” on Tuesday, July 16, from 1:15pm to 2:30pm at McCormick Place, Room S402.

Three speakers from different parts of the food industry will discuss how sustainable food production is critical for ensuring global food and nutrition security into the future. By the end of this panel discussion, the audience will gain deeper insights on different approaches to enhance sustainable production, including minimizing food loss and waste, reducing greenhouse gas emissions, and using climate resilient crops for foods. The audience will also learn how advances in measurements, such as life cycle assessment and circularity, are changing the landscape of sustainable food processing and how stakeholders can collaborate to achieve more sustainable food production.

Advanced technologies, such as those fueled by artificial intelligence, are making many sustainability efforts easier. Such AI may assist with more efficiently managing energy consumption, air emissions and water use. Precision agriculture, including drones, satellite imagery, and more help farmers reduce the use of natural resources.

“Artificial intelligence has the power to massively change the way the global food system operates,” says IFT CEO Christie Tarantino-Dean. “Many recognize AI’s immense value but are unclear on how or when to incorporate it.”

At IFT FIRST, there will be a number of educational opportunities where attendees can learn from some of the top AI experts in the world. They will leverage their leadership experience at industry-disrupting organizations to show how companies of all sizes in the science of food community can use AI to innovate new products, quickly solve problems and transform the global food system at large.

Plan to attend, “Keynote: Revolutionizing Food Innovation Through AI” on Monday, July 15, from 8:15am to 9:30am at McCormick Place, IFT FIRST Theater (S100 Ballroom). The panel of experts will explore how collaboration across the human/machine spectrum fuels groundbreaking advancements in predictive analytics, precision engineering, biotechnology and food product development. The capacity of this technology to revolutionize the prediction, discovery, design and optimization of food innovation holds immense promise. 

One of the ways companies can address consumer needs is by utilizing AI to continuously improve formulations for different categories by connecting ingredients, chemical and physical measurements, sensory evaluations, and consumer preferences. To see this in action, plan to attend the presentation “Predicting the Sweet Spot: A New Frontier in Consumer and Sensory Science Using AI Predictive Modeling to Optimize Natural Non-Caloric Sweetener Taste and Performance” on Monday, July 15, from 11:00am to 11:20am in McCormick Place, Room S401d. 

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Scientists from Ingredion will present a case study on sweetened beverages in five countries (US, UK, Brazil, Mexico and India). The research uncovered the differences in taste preferences and drivers of liking in each country. They were able to use an iterative approach to train the model and optimize sweetener solutions based on the sensory data. The model reveals ingredient drivers of liking and predicts novel combinations for specific consumer groups.

Beyond AI, there’s another growing area of interest in the sustainability conversation, and that’s with upcycling. Upcycled foods use ingredients that otherwise would not have gone to human consumption. They are procured and produced using verifiable supply chains and have a positive impact on the environment, according to the Upcycled Foods Association, Denver, which defined the term in 2020. Formulators and marketers have started quantifying their use of upcycled ingredients and making this part of the product’s selling points.

And without a doubt, expect to hear a lot more about using precision fermentation to produce all types of ingredients, from colors to proteins to sweeteners. Of course, efforts in this space are going towards making more clean-label ingredients, as well as ingredients that assist with making foods more healthy. 

If you recall, IFIC showed that healthfulness ranked third on influencing purchase decision. But what exactly is a healthy food? 

For the third straight year in the IFIC Food & Health Survey, “fresh” (39%) is the most common criteria used by consumers to define a “healthy” food followed by “good source of protein” (37%) and “low in sugar” (35%). While the inclusion of “fresh” and “low in sugar” in definitions for “healthy” have remained consistent across the last three years, “good source of protein” is gaining steam, steadily climbing over the past three years (59% in 2022, 67% 2023 and 71% 2024). 

Also, more consumers are trying to limit their sugar consumption this year (66% up from 61%). Ingredients that assist with reducing added sugars will be dominant on the IFT FIRST expo floor. Many of these ingredients provide more sweetness with less (or no) added sugars. 

To view the full 2024 IFIC Food & Health survey, link HERE.

Hope to see you at IFT FIRST. The weather is expected to be clear and hot. Summer in Chicago is amazing. Hope you can enjoy the lakefront and some outdoor dining. 

VISIT INGREDION AT IFT FIRST, BOOTH S1131