Dairy Expectations for 2026

 

Circana released a revised 2026 outlook for the U.S food and beverage retail sector this week. I also had the opportunity to interview Jeremy Allen, the chief communications officer for Circana. He said that Circana’s brand clients have been very busy with innovations for the premium segment, as consumers are shopping more, rather than eating out, but still want little treats and indulgences. Think butter, cheese, and, of course, ice cream!  

“There had been a pause in innovation, but brands are now doubling down on it,” he said. 

I would like to add that the dairy industry did not pause. Way to go! 

Circana now expects total retail food and beverage dollar sales growth to range from 2% to 4% in 2026. To succeed, Circana advises brands and retailers to address value needs, optimize their channels and focus on personalization and innovation.

That’s what Danone North America has been in doing. The processor is ready to usher in the new year with a plethora of innovative new products. 

“In 2026, consumers aren’t just eating. They’re optimizing,” says Rafael Acevedo, president of the yogurt business unit for Danone North America. “Busy lifestyles, the rise of GLP-1 medications and a growing focus on convenience mean people want more from every bite. They’re looking for functional benefits that support gut health, satiety and overall well-being without adding complexity. We’ve been preparing for this, developing a uniquely positioned portfolio to deliver nutrient-dense, delicious options that fit seamlessly into consumers’ daily routines. Everyday dairy has been, and continues to be, a powerful tool for health goals.

“Social conversations on gut health went viral this year, yet Danone found that half of Americans are unaware that the gut microbiome can impact gut health and overall wellness. Think immunity, mood and sleep,” added Acevedo. “As awareness grows in 2026, consumer needs will continue to favor fiber, prebiotics and probiotics, staples of gut development that continue to lead our yogurt business strategy and innovation.”

Whitney Evans, director of nutrition science, research and innovation at Danone North America, said, “Protein isn’t just trending. It’s transforming. As consumers dig deeper into protein and health, we’re seeing a shift toward options that deliver a differentiated benefits beyond just grams of protein. At Danone, that evolution is built into how we are formulating our next wave of performance-forward products like Oikos Fusion, with both complete whey protein and free leucine to provide muscle support, as well as the plant-based Silk Protein, which showcases the inherent nutrition in soy [of being both complete protein and a source of fiber].”

Silk Protein—in Chocolate and Original varieties--is the company’s most recent addition to its plant-based drink portfolio. It is claimed to deliver the highest protein content of any currently available refrigerated, plant-based milk in the North American market, with each serving providing 130 calories and 13 grams of plant protein with all nine essential amino acids, as well as 3 grams of fiber and 50% less sugar than regular dairy milk while containing no artificial sweeteners. The drink is also a source of calcium and vitamin D to support bone health. It is currently making its debut in select markets with full nationwide distribution slated for early 2026.

Silk Protein fills a gap for a complete plant protein for vegans and dairy avoiders on weight loss medications. 

“GLP-1 use is only expected to rise in 2026 given the number of Americans who meet criteria for the drug combined with softening in key barriers to access,” said Evans. “In the context of consumer obsession with health and nutrition tracking, the demand for protein-rich, nutrient-dense offerings--including foods and drinks designed specifically for those taking a GLP-1--will likely only continue to grow this year.”

This space presents an excellent opportunity for ready-to-drink (RTD) coffee-milk protein beverages. People on these medications still want their morning java. The inherent caffeine in coffee is also a necessary pick-me-up for those feeling sluggish from the medications. 

The global RTD coffee beverage industry was valued at $33.0 billion in 2022, and is projected to reach $53.5 billion by 2032, registering a compound annual growth rate of 5.0% from 2023 to 2032, according to Allied Market Research. 

The portable packaging of RTD coffee, typically in cans or bottles, caters to the need for mobility and flexibility of consumers. Further, the rise in health and wellness trends among consumers has positively impacted the category, according to Allied Market Research. Manufacturers are responding by incorporating health-focused ingredients into their products, such as antioxidants, natural sweeteners and functional ingredients, e.g., dairy proteins.

To peruse recent coffee-milk innovations, link HERE.

To learn more about “The Science and Technology of RTD Coffee with Milk,” register to attend the like-named short course at Chapman University this January. (I am one of the instructors.) This practical workshop is for entrepreneurs, processors, coffee shop and food and beverage industry professionals. Link HERE. 

Stay warm! Cheers!

Unlocking the Future of Protein Science

 

I was fortunate to attend a hosted media event at Danone’s U.S. Research & Innovation Hub in Louisville, Colo., this week. Thank you Danone! 

Danone’s passion for protein and the company’s dedication to learning more about the 20 amino acids and the powers they hold to make the human body function at its best was shared. And, it’s amazing. The work being done by Danone should make all of us in dairy very excited about the future. 

“Not all protein is created equal,” said Susan Zaripheh, chief research and innovation officer-North America. “It’s time to elevate the story.” 

If you have not noticed, Danone North America has been on a roll this year with introducing new products. One of the company’s most notable innovations, and likely the motivator behind this week’s event, is Oikos Fusion, a nutrient-dense cultured dairy beverage for consumers prioritizing health-conscious choices, in particular, those on GLP-1 weight loss medications.

This first-of-its-kind drink features a patented blend of nutrients—whey, leucine and vitamins—designed to help build and retain muscle mass during weight loss. One compact 7-ounce bottle delivers 23 grams of complete protein, 5 grams of prebiotic fiber, and important vitamins, including D, B3 and B12. The lactose-free, 0 grams added sugar drink was formulated to have a light consistency that is both refreshing, delicious and easy to consume, even if you have no appetite. The refrigerated, 130-calorie cultured dairy drink comes in Mixed Berry, Strawberry and Vanilla flavors.

“People on a weight loss journey often eat less, so it’s crucial to focus on the nutrient density of the foods they do eat. When protein needs are not met, the body will start breaking down muscle to get the amino acids it needs. Fiber is also important considering its role in digestive health and because most American fall short on fiber intake,” explains Whitney Evans, director of nutrition and scientific affairs at Danone North America. “That’s why we created Oikos Fusion. We packed as much targeted nutrition as possible into a small, delicious and convenient bottle to help make it easier to meet key nutrition needs.”

It took almost two and a half years to develop Oikos Fusion. The product was made possible thanks to Danone’s more than 125 years of expertise in Specialized Nutrition. This is sector of the business that is very small in North America, but quite large in Europe and Asia. (I honestly never knew Danone played in this space, and I have been writing about dairy for more than 30 years!)

This business focuses on products that support people of all ages with specific nutritional needs, including babies and people with health conditions, like cancer or stroke. The company’s scientists understand the power of specific amino acids, and the additional powers they hold when combined into bioactive peptides. 

“Different amino acids have different benefits,” said Katrien Van Laere, senior vice president, research and innovation, medical and nutritional science. “For example, arginine assists with wound healing.”

She explained that Danone’s research team is actively investigating how amino acids behave in the body. “It’s not just what you eat, but also when you eat it,” she said.    

Takoua Debeche, chief research and innovation officer, said, “Muscle is our longevity organ.” 

Muscle enables us to breathe, to stand up straight, to chew food. We need to continuously feed the body with proteins, because unlike fat, the human body does not store protein. So when the body needs more protein to function, it is taken from muscle, explained Ardy van Helvoort, senior director, research and innovation, nutritional physiology and functional nutrients. 

He said that every three months, the muscle in the body is completely turned over. But dietary amino acids and proteins are not just about building muscle. The body is composed of more than 10,000 forms of protein, all with different functions. These are made by the 20 amino acids in different arrangements. 

“Only 40% of the protein in our body is in muscle,” said Helvoort, senior director, research and innovation, nutritional physiology and functional nutrients. “Enzymes are protein. Insulin is protein. The blood is full of protein. [Dietary] amino acids are important building blocks for all sorts of systems in our body.” 

Debeche added, “We need protein for whole body health.”

Going forward, the company will have more innovations like Oikos Fusion for the general population. It’s all about “functional stacking,” or packing in as many nutrients into an easy-to-consume food or beverage.

“The future of fitness is through dairy,” said Evans. “The healthy choice is becoming an easier choice.”

This supports Danone’s mission of bringing health through food to as many people as possible. 

Evans explained that the company is active with exploring how artificial intelligence will accelerate research on what specific amino acids and peptides do in the body. 

“We are watching [years and years] of research come to life,” Evans said. “Protein science is shaking up the future of nutrition.” 

Cheese and Milk Identified as Foods to Eat in 2026

 

Nutrition policy expert Marion Nestle and professor at NYU has three decades of experience in the public and private spheres. Her new book—What to Eat Now: The Indispensable Guide to Good Food, How to Find It, and Why it Matters—reinforces dairy’s positive image in the world of food and nutrition. 

In an aisle-by-aisle guide, Nestle takes readers through the American supermarket. She establishes the basics of good nutrition, food safety, and ethical and sustainable eating. Dairy foods are part of her lesson plan. 

Nestle recommends what she calls a “triple duty” diet aimed at preventing hunger, obesity and climate change. “Eat real food, processed as little as possible, with a big emphasis on plants,” she says. And when she says plants, she means plants, e.g., whole fruits, vegetables, nuts, seeds, grains, etc.

In numerous interviews published this week, she described her dairy diet. It is:

Breakfast: A couple cups of weak coffee with milk and no sugar. Then oatmeal or unsweetened Shredded Wheat with a little brown sugar—much less than in presweetened cereals—and seasonal fresh fruit. 

Lunch: These meals are “totally irregular.” Sometimes a salad, sometimes whatever is on hand at home, including vegetables and fruits from her own terrace garden, along with cheese, peanuts and bread.

Dinner: Equally flexible, and it sounds a little like lunch. “I just don’t eat that much. But I do really like salads. I can have salads twice a day. If I’m at home, I might have an egg. I might have crackers and cheese with that. I kind of like making meals based on what I have available.”

Take note of her consumption of milk and cheese. This is a major win for dairy, as her book is selling and being read by Americans. 

Indeed, dairy is winning with consumers. The national checkoff is helping lead the charge, thanks to investments in research, marketing, partnerships and innovation. That was the message from Dairy Management Inc. (DMI) President and CEO Barbara O’Brien at the 2025 Joint Annual Meeting of the United Dairy Industry Association, the National Dairy Promotion and Research Board and the National Milk Producers Federation, which drew nearly 800 farmers and industry representatives to Arlington, Texas, earlier this week.

According to Circana retail data, dollar and unit sales are up across eight of 10 top-dairy segments and real dairy products are growing nearly 6% year over year. Across key refrigerated categories, dairy products generate seven times more sales than plant-based alternatives, which are now in decline.

Three out of four U.S. households purchased a dairy product in the past week, O’Brien said. Nearly two-thirds specifically bought milk, cheese or yogurt. 

“When it comes to dairy, consumers are looking for the real thing,” she said. “And that didn’t happen overnight. It’s the result of years of research, collaboration and consistent farmer investment.”

The meeting featured a presentation by Dr. Oral “Jug” Capps Jr., executive and regents professor at Texas A&M University, who has evaluated dairy promotion programs since 2011. His independent economic analysis showed substantial positive impacts from checkoff-funded efforts in four key areas: domestic foodservice partnerships, fluid milk innovation, whole-fat science and dairy exports.

The findings include:

• Foodservice partnerships with McDonald’s, Taco Bell and Domino’s contributed to 18.5 billion additional pounds of dairy sold at retail, providing $875.9 million cumulatively to farmers from 2009 to 2024. For every dollar invested by dairy farmers and importers, Capps’ research found the net return is $3.49.
• Fluid milk innovation from 2018 to 2024 contributed 10.4 additional pounds sold per dollar spent, totaling $121.5 million in benefit and a return of $1.68.
• Whole-fat science research from 2012 to 2024 generated 8.2 billion additional pounds sold and nearly $400 million in cumulative value for a return of $34.55.
• Dairy export promotion resulted in 43.5 additional pounds exported per dollar spent, translating to $4.6 billion in value to farmers from 2013 to 2024, returning $12.17 on the dollar.

Building Trust Through Science, Storytelling

O’Brien said a major emphasis of the past year has been building consumer trust by addressing what DMI calls “Fuels and Frictions.” These are the factors that either strengthen or challenge dairy’s reputation. Checkoff programs leaned into dairy’s “fuels” of taste, health and science-backed nutrition while addressing “frictions,” such as questions about animal care and sustainability.

“Trust builds when people understand who we are, what we stand for and how we care for our animals, land and communities,” O’Brien said. “That’s why our marketing and communication efforts meet consumers where they are, whether it’s in schools, fitness programs, food shows or even online gaming platforms.”

DMI’s checkoff-funded research continues to yield new insights that strengthen dairy’s position in the health and wellness landscape. More than 40 active studies are underway exploring dairy’s benefits for heart, gut and mental health, along with the Mayo Clinic collaboration to advance understanding of dairy’s role in cardiovascular and metabolic wellness.

Recent studies and nutrition research have shown that dairy fat behaves differently than other saturated fats because of the dairy food matrix. This is the unique way that dairy protein and calcium interacts with milkfat interact in dairy. This combination can support heart and metabolic health outcomes when dairy is part of healthy eating patterns. These findings suggest that cheese consumption is not associated with increased heart disease risk and that dairy foods at a range of fat levels can be part of a healthy diet, according to the International Dairy Foods Associations’ Messaging Guide: Full-Fat Dairy Is Back, October 2025.

Dairy innovations is on fire. O’Brien said innovation extends across the supply chain. 

“Producers are diversifying their operations and focusing on milk that meets modern market needs,” she said. “You’ve driven remarkable progress in milk composition and efficiency, and processors have followed suit, investing over $11 billion in new and expanded processing capacity. That’s transformation in motion, and checkoff-funded science helped spark it.”

Marilyn Hershey, DMI chair and Pennsylvania dairy farmer, added, “Our dairy consumption is at an all-time high, full fat is celebrated, protein is powerful and we want to keep that momentum rolling. And we need to! A few years before my parents started dairy farming, each farmer was feeding 25 people. Today, we are responsible for approximately 166 people worldwide. And that number will only grow, but the responsibility is real.”

Consumers are embracing dairy’s role in a balanced diet. As Nestle acknowledges, cheese is real food with real nutrition. It can be a meal or a snack.

“We’re witnessing the end of the ‘health versus happiness’ trade-off in the dairy aisle,” said Richard Neish, director, CI Trend Intelligence at IFF Taste. “The consumer’s desire for holistic well-being now extends beyond personal health to that of the planet. This shift toward ethical consumption means a product’s purpose and its impact on surrounding ecosystems are just as crucial as its nutritional benefits. The brands that will lead the future are those that prove a product can be a treat for the soul, precisely because it’s rooted in transparent, sustainable practices.”

IFF identifies five trends set to shape the dairy market in 2026. Together, they signal a shift from price-led decisions to more purpose-driven choices. They are: 

1. Considered Consumption is emerging as the dominant force. IFF reports rising demand for multifunctional dairy products that align with social and environmental value, with dairy’s functional and versatile positioning continuing to strengthen.
2. The report highlights rising interest in Wholistic Health, a 360-degree approach to physical and emotional wellbeing. Protein fortification and probiotics have become baseline expectations. Demand is increasing for nutrient-dense dairy formats that support satiety and help maintain muscle mass. 
3. Consumers are seeking Joyful Harmony through indulgence that does not compromise health. Cheese is singled out as a category with rising emotional appeal. This is opening opportunities for premium snacking formats, flavored profiles and playful textures.
4. Regenerative Resilience is about a shift from sustainability as damage limitation to regeneration as a proactive restoration strategy. 
5. Human + AI explores how the industry is negotiating the integration of artificial intelligence into product development. While businesses are accelerating AI-driven innovation, consumers want reassurance that craft, care and human expertise remain central. IFF argues that discreet, ethical AI use can strengthen trust rather than dilute it.

Trend for 2026: Protein Plus-One

 

Protein will remain a wellness powerhouse in 2026, according to Lu Ann Williams, global insights director at Innova Market Insights, The Netherlands. Globally, three in five consumers are actively including more protein in their diet, per the Innova Trends Survey 2026. 

Over the past year, milk and milk drinks ranked as the number-one product with protein claims that consumers said they had purchased. (Great job marketing this powerhouse nutrient!) But protein will not be enough this coming year. It’s all about protein and at least one health claim, an attribute that has experienced noteworthy growth in food and beverage launches this past year.  

Williams believes the biggest opportunity is marketing weight management with new protein-centric innovations, a claim that has increasingly started to appear this year on product introductions. While this may have been fueled from the rise in popularity of GLP-1 weight loss medications, the claim resonates with non-users as well. 

To supporting any weight management claims, many marketers will be leaning into the “plus-one” being fiber. Like protein, fiber satiates. It also supports gut health.

“Consumers increasingly see gut health as the gateway to holistic wellness, sparking demand for benefits across body and mind,” said Williams. “Consumers globally see a strong connection between gut health, weight and stress. They are increasingly turning to functional ingredients like probiotics and prebiotics to address benefits across the body and mind.” 

These are Innova Market Insights’ top-two food and beverage trends for 2026. Dairy foods owns both categories. 

This week, Midwest Yogurt Inc., a division of Lactalis USA, Minneapolis, rolled out its first line extension in the :ratio line since acquiring Generals Mills’ yogurt and cultured dairy business. 

New :ratio Pro-Fiber is a functional dairy snack that provides 20 grams of protein, 10 grams of fiber and zero grams added sugar. Formulators stacked two fiber ingredients—soluble corn fiber and chicory root fiber—into the product. The product comes in Blueberry, Lemon Meringue, Piña Colada and Vanilla flavors. 

“Protein and fiber are two of the most top-of-mind nutritional macros for consumers,” said Shea Allred, head of North America sales at Midwest Yogurt, “With :ratio Pro-Fiber able to deliver on both, we’re seeing lots of excitement from retailers.”

The Protein Plus-One trend is booming in the shelf-stable, ready-to-drink dairy protein beverage space. 

I wrote about this trend for Food Business News. You can read more HERE. 

This trend is very noticeable at Costco. Just a little more than a year ago, Failife’s Nutrition Plan and Core Power drinks were the sole ultra-filtered milk shakes sold at the club store in the ambient nutritional beverage aisle. Then Nurri entered the scene, as an exclusive to Costco. 

Today, Premier Protein also has a very strong presence. And plant-based brand Orgain now plays in this space with the introduction of Orgain Milk Protein Shake. Water is the first ingredient in this shelf-stable beverage, followed by milk protein isolate and milk protein concentrate. One 11-ounce box contains 160 calories, 3 grams of fat, 2 grams of fiber, 1 gram of sugar (no added sugars) and 30 grams of protein. The beverage is sweetened with monkfruit and stevia. 

The shakes are marketed as delivering all nine essential amino acids and naturally occurring branched chain amino acids “to help stimulate optimal muscle protein growth and to repair and rebuild muscle fibers.”  A box of 18 sells for $29.99 at Costco. 

Expect to see more dairy innovations featuring protein and fiber content claims on product labels in 2026.   

Following are the other top-eight food and beverage trends for 2026 from Innova. Williams said that “an emotional lens is shaping the trends. Formulators are designing for how people feel.”

Trend 3: Layers of Delight

“Indulgence is evolving into a multi-dimensional experience; elevating the moment and mood and combining sensory richness with wellbeing,” according to Williams. “Both familiar sensations and novel inventions win indulgent seekers.” This includes elevated flavors and textures and products that provide permission to indulgence.

Trend 4: Beverage with Purpose

According to Innova’s consumer research, beverages are leading innovation in wellness, as consumers are increasingly favoring products for hydration, convenience and functional boosts. The global food and beverage market has seen a +18% CAGR growth in new launches with hydration claims, and dairy-based products are being perceived as healthy snacks. This trend highlights the role of beverages in delivering health benefits to consumers.

Trend 5: Authentic Plant-based

This trend reflects the evolving perception that consumers have toward plant-based foods. When selecting from protein options, 40% of global consumers point to “natural or minimally processed” as a key consideration. Consumers are embracing natural plant proteins for their added benefits, underscoring how plant-based is shifting from imitation to nutrition.

Trend 6: Made for Moments

Occasion-based innovation—think products for specific dayparts, seasons and life stages—is expanding through diverse formats in snacks, fresh meals and single-serve offerings. 

Trend 7: Worth Every Bite

“With economic pressures rising, affordability and accessibility are becoming key drivers of loyalty and choice,” said Williams. “Shoppers prefer simple, straightforward foods and are prioritizing foods that feel familiar and safe. Private label continues to be a strong solution.”  

Trend 8: Mind Balance

According to consumers, stress is the top mental health area that they seek to improve. As a result, consumers are turning to natural food and beverage solutions for energy, brain health and stress relief. Comfort foods and drinks also help ease stress and rekindle joy. 

Trend 9: Crafting Tradition

“Food heritage is driving choice by offering comfort, identity and authenticity in uncertain times,” said Williams. 

Trend 10: Justified Choices

Sustainability remains a tiebreaker. It wins when it feels tangible, transparent and truthful. “Consumers are more acceptable of premium prices for sustainable products when brands demonstrate support for local farmers and communities, environmental protection, sustainable packaging and improved product quality or taste,” said Williams.

 

Dairy complements all 10 trends. This is the era of dairy. Get busy in this space. 

The 2025 IDF World Dairy Summit: News from Chile

 

PICTURED: Gilles Froment, president of the International Dairy Federation (IDF), and senior vice president of government and industry relations at Lactalis Canada.

NOTE: The website builder for BerryonDairy.com was down the past 48 hours. To view details of the featured product from Oct. 23, 2025, please link HERE. 

“Nourishing a Sustainable World” was the theme of the 2025 World Dairy Summit, which was held this week in Santiago, Chile. Organized by the International Dairy Federation (IDF), the summit brought together farmers, processors, suppliers, academia and organizations from the global dairy industry to explore new pathways for innovation and sustainability. In all, 48 countries were represented at this annual event, which will next take place Nov. 15-20, 2026, in Auckland, New Zealand. (Mark your calendars!)

The program had many great takeaways. What was really impressive was the dairy departments in the Chilean supermarkets. These people know how to keep dairy relevant with innovation!

Chile is home to around 6,000 dairy farmers, who annually produce a total of about 2.2 billion liters of milk from about 500,000 dairy cows. And, on a side note, Chile also boasts the largest robotic dairy farm globally, with 5,800 cows milked by 90 robots.

The 20 million consumers who live in Chile love their dairy. And the industry is responding with constant innovation. This past week you saw a number of recent entries to the Chilean marketplace. This coming week, more will be featured as a Daily Dose of Dairy.

The biggest takeaway from the event was that “dairy is booming” across the world. The challenge, however, is that supply does not, and will continue to not meet demand unless changes are made, according to Gilles Froment, president of IDF and senior vice president of government and industry relations at Lactalis Canada.

“We are operating in deficit territory,” he said. 

Claudio RodrÍguez-Huaco, a member of the board of directors of Grupo Gloria, which is headquartered in Peru and has a presence across Latin America with an extensive range of Grupo Gloria branded dairy foods, said, “We need to modernize every link in our supply chain in Latin America in order to ensure nutritious dairy products are available to all.

“There’s a huge opportunity to innovate,” he said. “We need to continue to have an emotional connection with our consumers.” 

Technologies to improve yield are critical to move forward. This includes advancements in genetics. 

“We are using natural variation in the population to select and breed from the best. We help farmers do more with less,” said Matt McCready, CEO, Semex. “Genetics are one of the lowest input costs on farms, and it’s a cost farmers already incur. We are breeding for immunity and disease resistance, as well as for cows to be more tolerant of heat [as the planet warms up.] 

Antonia Wanner, chief sustainability officer at Nestlé, said, “ We are helping farmers [around the world] become more resilient. Our ambition is to advance regional food systems at scale. 

“Dairy is part of our portfolio,” Wanner added. “It is not replaceable.”

Dr. Federico Harte, professor of food science at Pennsylvania State University shared highlights from the many research projects taking place in academia that focus on making more from milk. This includes everything from isolating and purifying milk bioactives to advance human nutrition to converting side streams and milk macronutrients into functional ingredients.  

Here are five trends fueling dairy innovation in Chile.

1. Lactose Free. Almost everything new to the marketplace includes the lactase enzyme to render the product lactose free. This keeps lactose-sensitive Chileans consuming dairy and not wandering over to the alternative department, which by the way, is very, very small compared to the real deal.  

2. A2 Milk. As Chilean farmers convert to A2 herds, brands are starting to build their A2 dairy offerings. 

3. Dairy Drinks. Dairy drinks, including those based on liquid whey, are gaining traction in Chile and Brazil, especially among younger consumers. This is proving to be a favorable outlet for the whey side stream from cheese and Greek yogurt production. It’s more economical than drying whey for use as an ingredient in Latin America. 

4. Made in Chile. Touting the fact that dairy products are made with 100% Chilean milk is everywhere. It’s the country’s take on terroir in dairy. It’s very common with yogurt and shelf-stable fluid milk, and gaining traction in cheese, as the country tries to grow its cheesemaking industry. (Currently most aged cheeses in Chile are imported, with many from the U.S.)

5. Functional Nutrition. Chileans are on-trend with functional nutrition. Protein, probiotics and prebiotics are in everything, including ice cream. There are yogurts with magnesium for muscle function and relaxation. 

This shelf-stable beverage from Colun is described as an on-the-go breakfast beverage. It is milk fortified with milk proteins and oats for heart health, satiety and fiber, as well as galactooligosaccharides, which are prebiotic fibers derived from milk. 

Added lactase breaks down the lactose in the milk, contributing some sweetness, which is further enhanced through the addition of stevia and sucralose. The beverage is also fortified with vitamins A, D and E. It comes in chocolate and white, with a 330-milliliter drink box containing 90 calories, 5.5 grams of protein, 2.5 grams of fat, 4 grams of fiber and 10 grams of total sugar.  

NACS 2025: The Next Decade is all about Gen X

It appears that the “forgotten generation,” those of us born between 1965 and 1980, are finally getting the recognition we deserve in the world of consumer packaged goods marketing. It’s about time. 

There are 1.4 billion Gen Xers navigating the globe today, according to Wolfgang Fengler, chief executive officer of World Data Lab, who spoke alongside Marta Cyhan-Bowles, chief communications officer and head of global marketing at NielsenIQ, at NACS 2025, the c-store conference and expo that took place this week in my amazing home city of Chicago. (We are a resilient city and taking care of ours during these insane times.) 

“They’ve got trillions and you’ve got blind spots,” said Fengler, when describing Gen Xers. “In 2025 alone, Gen X will drive $15.2 trillion in global spend.”

Most Gen Xers are or getting close to being empty nesters. Yet, they are the sandwich generation, as they still influence the purchases their parents and their adult kids make. 

“Gen X’s unique identity is as the CFO of three generations,” said Cyhan-Bowles. “Gen Xers spend on elder and dependent care, and education, have clearly positioned them as ‘caretaker consumers.’”

Most Gen Xers are at the peak of their careers and energized. They’ve made it this far and refuse to be forgotten anymore. Gen X wants to have fun!

“They straddled both analog and digital domains,” said Cyhan-Bowles. 

And dang, we are resilient and flexible when it comes to navigating how we spend our money. For the record, I’m Gen X, and proud of it. We grew up independent, many of us as latchkey kids with both parents working. We witnessed the rise of MTV, grunge culture and personal computing. We are just as comfortable inserting a floppy disc into a computer as we are a memory stick, and now just saving to the cloud. 

Gen X is brand loyal, especially when it comes to the few brands that have marketed to them. If Jennifer Aniston endorsed it, I’m buying it. 

Eleven percent of Gen X says, “I am able to spend freely,” while 44% say “I love comfortably and am able to buy things just because I want them.” These are your customers! This is the majority of Gen X. 

“This is the Gen X decade,” said Fengler. “While there are more Millennials in this world, they have much less money to spend. Gen X is the number-one spender and growing. By 2033, their global spending power will reach $20 trillion, and approximately $7 trillion in the U.S. alone. 

“[If you are not marketing to them], you’ve not missed the train, just the opportunity,” said Fengler. 

He explained that currently the countries with the largest Gen X populations are in Europe and Asia. In the next year or two, it will be the U.S. 

“These are your most overlooked and most valuable customers,” Fengler said. 

Cyhan-Bowles added, “And they don’t need Costco anymore.”

They want convenience and portion control. She said that Gen X is less about clean-label foods—we were the first generation to grow up with Tab and other diet sodas—and more focused on calories and health. 

This likely explains why the plethora of dairy-based, high-protein beverages that have recently debuted in the market use artificial sweeteners to better deliver on taste, mouthfeel and price, as compared to like products that only use natural sweeteners. 

“This presents a unique opportunity for convenience store retailers and brands that can successfully capture Gen X, and their high degree of brand loyalty,” said Cyhan-Bowles “The intersection of ease of use, convenience and function positions c-stores (globally) to win with Gen X. They’re willing to pay a premium for products that assist or complement their stretched realities.

“Within c-stores, Gen X is the highest-penetration generation across the three leading c-store categories (which are non-alcoholic beverages, salty snacks and candy/gum/mints,” she said. She recommends that brands consider new formats and claims for caregiving, longevity and convenience.

Congrats to all the many brands who exhibited at NACS 2025. Dairy rocked the expo. If you are not marketing to Gen X, now’s the time to consider. And when considering, keep portion control and nutrient density top of mind. 

That’s because, “GLP-1 is not a killer of convenience. In fact, I would argue that convenience is a big friend to GLP-1 consumers,” said Sally Lyons Wyatt, global executive vice president and chief advisor of consumer goods and foodservice insights at Circana. “When you look at the categories that have gained positive shifts in convenience among these customers, it screams that the portion-control convenience offers by having single-serve sizes works.” 

Dairy Innovation Ideas from Europe

 Anuga, the biennial global food exposition that took place this week in Cologne, Germany, , showcased numerous innovations that will influence what fills supermarket shelves in 2026. I scoured the halls of the expo and also visited a number of German retailers to see what’s already out there in order to bring back dairy innovation ideas to inspire the global dairy industry. Enjoy! 

For starters, Euromonitor International recently identified the key trends driving innovation in dairy around the world. Kefir, and similar fermented milk products for gut health, are leading the way, especially when fiber, botanicals and/or nootropics are included. 

Check out this new brand from Arla Foods UK. The Cultura range is all about gut health. The mildly flavored fermented dairy drinks and cup yogurts are lactose free, and loaded with probiotics, vitamins and fiber. The products were designed to deliver “accessible, science-backed nutrition” to British consumers. 

The debut includes six products: three 500-milliliter gut-health milk drinks in Original, Raspberry and Blueberry flavors, and three 450-grams yogurts in Original, Strawberry and Blueberry flavors. The drinks are slightly effervescent, while the yogurts provide a smooth, creamy texture.

Labels indicate the drinks are 89% milk and contain soluble corn fiber and lactase. Key probiotics—all supplied by today’s blog sponsor, Novonesis—include Lactobacillus acidophilus LA-5, BB-12 Bifidobacteria and F-19 Lactobacillus casei. The benefits of consuming these cultures are backed by many clinical studies from the past few decades. 

“Our ambition is to become the most trusted, accessible gut-health brand on shelf and to do that we’re launching a major marketing campaign from September 2025 and throughout 2026,” said Stuart Ibberson, Arla brand director. “We want to simplify complex science so consumers can feel confident about ‘giving their gut more’ every day.” 

After the trend in such fermented dairy drinks, Euromonitor cites premium refrigerated creamers that deliver barista-style experiences and trendy flavors as a booming business. Fresh cheeses—everything from cottage-style to feta to grillable formats—are also doing well because of their high-protein content and simple, clean labels.

Innovation in dairy snacks also shows no signs of slowing down. Many of these snacks are targeting specific demographics. 

ERU, for example, has a new cheese spread for children. It contains 40% less fat and 53% less sodium than ordinary cheese spreads. ERU Kids is rich in calcium, mild in flavor and suitable for children over the age of 6 months. 

Bakoma, a dairy processor in Poland, is adding a shake to its MEN Skyr line, which includes cup yogurts and refrigerated snack bars. The brand is all about building and maintaining muscle mass. It is a mixture of yogurt and fruit with live bacteria cultures that are beneficial for the digestive system. The brand emphasizes the branched-chain amino acid content, flagging it on front labels. 

The company also has new Maxi Meal, which is described as a milk-based liquid meal. Each 500-gram bottle provides 34 grams of protein along with 26 essential vitamins and minerals. All of this is communicated in detail on the bottle, a trend that is gaining momentum in beverages intended for every day meal replacements. 

Kerry Dairy Consumer Foods, which launched an oat and dairy hybrid product range last year under the Smug brand, is pivoting. The hybrid line has been cancelled, but the brand will live on in a new range of dairy snacks that will launch in January. The products are all about playful branding with a focus on nutritional benefits. 

Smug is redefining itself as an “adult-snacking dairy brand,” with an emphasis on dairy in the logo. It will include two varieties of Cheese & Crunch, which are cheese cubes with either sea salt rosemary crackers or barbecue corn bites. There’s also Quarkies, bite-sized refrigerated quark bites in raspberry and vanilla flavors.

Recognizing that the humanization of pet foods shows no signs of slowing, dairy processors are getting more creative with their offerings. Dogs have had their own ice cream for some time. Now cats have fresh milk, even value-added offerings, such as this new one with omega-3 fatty acids.  

Ready-to-drink protein coffees have become quite prevalent throughout Europe. The latest dairy to join the trend is Emmi. 

And while the effervescent, shelf-stable canned milk beverage known as Milkis first made its debut in South Korea in 1989 by Lotte, the company has plans for rapid expansion around the world. In the U.S., it complements the dirty soda trend and presents an interesting opportunity for beverage manufacturers. 

The same is true of Aryan, a yogurt drink that has been around forever in the Balkans, Turkey and Iran. The traditional beverage is often described as salty sour, and often served with a sprig of mint. A number of Anuga exhibitors are now offering the beverage in convenient single-serve packages and in flavors, such as melon and mixed berry. 

Hope you are inspired! Cheers!