Doubling Down on Wellness-Focused Innovation Requires Protein

 

“It is not inflation that consumers are frustrated with, it is price levels,” said Matthew Barry, insight manager at Euromonitor International, when speaking on an IDDBA-sponsored webinar on trends shaping consumer food demand. “Consumer unhappiness is based on things costing more than they ‘should.’”

They are not going to like where things are going with staples that rely on imports. Cooking oil, for example, is projected to cost nearly double what it was in 2020 when it’s 2030.

For the most part, shoppers, while frustrated with the price of eggs in recent months, understood why they were expensive. There was a shortage because the hens got sick. Many also recognize why chocolate is pricey. There’s a cocoa shortage. But cooking oil? That’s a man-made inflation. 

Barry explained that today’s consumers have lost interest in things that are not price. This, in turn, “has had a chilling effect on innovation,” he said. Global packaged food launches in January and February 2025 were at an all-time low, according to Euromonitor research. 

“Where innovation succeeds, it tends to be wellness focused,” said Barry. 

For dairy, which includes cow’s milk- and plant-based formats, there’s a lot of opportunity in wellness. (See graph.) Protein is part of consumers’ wellness journey. 

 

Enter hybrids. This is something actively—and quite successfully—taking place in the meat category. It’s all about making products that are plant forward. Within meat and poultry, this refers to hybrid or blended products. It’s not a new concept, but it’s one that has had very slow traction. However, Food System Innovations, San Francisco, a philanthropic group aiming to speed the transition toward a greater reliance on plant-based proteins, believes it’s where to meet consumers at this time. The organization refers to these products as “balanced proteins.”

Source: Euromonitor International, courtesy of IDDBA

 

 

 

 

“The rise of plant-based eating is not just a trend,” said Julie Johnson, president, HealthFocus International, Des Plaines, Ill. “It’s a seismic shift in the food industry.”

Blended products enable reducetarians to feel better about their choice, for reasons ranging from health to sustainability. At the same time, depending on the product, they do not have to make any sensory sacrifices. Nutritional beverages touting specific benefits present a real opportunity. 

Source: Euromonitor International, courtesy of IDDBA

Food System Innovations partnered with YouGov to survey a nationally representative sample of 2,001 respondents to gain insights into consumer behavior, perceptions and opportunities for balanced protein meats. The survey showed that many consumers are hesitant to adopt products they perceive as unfamiliar or disconnected from their traditional meat experiences. Balanced protein concepts resonates with consumers by offering recognizable taste, texture and ingredients.

“Balanced protein is a practical solution that creates market demands while delivering the sustainability and equity improvements our food system needs,” according to Tim Dale, category innovation director at Food System Innovations.

Johnson agreed. “We believe harnessing plant’s inherent connection to many other macro trends (e.g., natural/clean, added fiber and protein, etc.) are the best way to push plant forward and deliver the products consumers are really looking for,” she said.

Animal and plant proteins make a powerful pairing. Together in a single product, or simply in the shopping cart. That’s because very few Americans purchase alternatives exclusively, while about a quarter purchase both, according to a survey by McKinsey, New York. 

Source: Euromonitor International, courtesy of IDDBA

“The share of only plant-based buyers is lower with 5%,” said Kwee Choo Ng, regional manager-rice ingredients and functional proteins, BENEO, Parsippany, N.J. “In most cases, plant-based options are an add on to the conventional dairy options and hence contribute to a flexitarian lifestyle that is gaining popularity.”

Barry believes that something BIG is going to happen soon, another crisis, per se. He, of course, has no idea what it is, but it’s inevitable based on the chaos taking place. This, however, presents an opportunity for innovators to focus. 

“Future crisis is likely to lead to [consumers] doubling down on today’s trends of value, wellness and stress-fighting indulgence,” he said. 

The Dairy Processor List. Edition 2.

The Dairy Processor List will be a recurring Friday blog topic as we try to navigate the chaos taking place in Washington, DC. It will highlight the good, the bad and the ugly. Welcome to the second edition, which covers: Shopping habits, SNAP, sugar is poison, reformulation plans need to be accelerated, but most important, highlights from the 101st Collegiate Dairy Products Evaluation Contest.

If you missed the first edition on food safety, colors, sugars, clean labels in schools and reformulations for retail, link HERE.

1. Shopping Habits. Thirteen percent of household budgets went toward food in 2023, according to U.S. Grocery Shopper Trends 2025 by FMI--The Food Industry Association. This was the same amount a decade ago. 

“Despite the economic pressures they face, consumers overwhelmingly tell us they enjoy grocery shopping and that they are willing and able to budget in order to ‘eat well’ based on their specific values and needs,” said Leslie Sarasin, president and CEO of FMI. “In fact, our U.S. Grocery Shopper Sentiment Index is currently holding steady at 72 out of 100. While individual needs vary, by and large, most shoppers prioritize four things when shopping for food: health, entertainment, exploration and convenience. Satisfying these key needs are important to shoppers, and they tailor their overall budgets and food spending behaviors to ensure they ‘eat well’.”

 

 

Still, several factors are weighing on consumers. Most Americans (70%) say they are extremely or very worried about rising grocery prices, and 78% said they are at least somewhat concerned about the impact of tariffs on the cost of imported food and ingredients. 

The analysis revealed a silver lining: most consumers (75%) report feeling in control over their grocery spending. However, that confidence has declined in recent months; 85% of consumers expressed confidence in control over food spending in September 2024. In response, shoppers report using various strategies to stretch their food budget further. Traditional methods like list-making (83%), taking household inventory (79%), meal planning (69%) and seeking out coupons or discounts (60%) remain the most common. 

2. SNAP. What’s at stake for the Supplemental Nutrition Assistance Program? The House proposal calls for $230 billion in USDA cuts through 2034, while the Senate has proposed just $1 billion. The more cuts, the more likely SNAP is in jeopardy.
FMI’s Sarasin emphasized, “Our latest grocery shopper research underscores a critical opportunity for the industry to meet their customers where they are—navigating rising costs and economic uncertainty—while reinforcing the importance of SNAP, a vital anti-hunger program that provides just $6 a day to those most in need.”

“The American public is clear on this: 70% support SNAP, and a majority oppose any effort to reduce its funding, according to an FMI national survey by leading pollster, Fabrizio, Lee & Associates. The future strength of this program isn’t just a policy issue. It’s a moral imperative and an economic necessity.”

3. Sugar is Poison. Regardless how much SNAP gets funded, it will likely face purchasing restrictions, for example banning soda purchases. 

“Because of what we learned at the (April 22) press conference’s Q&A, we can now add sugar to (RFK’s hit) list,” according to Nicholas Fereday, executive director, Rabobank. “Let this sink in. For the first time ever, we now have a health secretary who believes that ‘sugar is poison’ and thinks we should not be consuming any added sugars. What were once considered fringe ideas have now been drawn into the very heart of government policy making.”

Per capita consumption of caloric sweeteners is down by about one-fifth since its peak at the start of the 21st century, according to USDA. Most of this is attributed to a decrease in consumption of sugary sodas.

“Kennedy is hoping to achieve further reductions in sugar consumption by raising awareness, or as he likes to say, ‘radical transparency,’” according to Fereday. “This includes initiatives like the upcoming update to the Dietary Guidelines for Americans, expected later this year, as well as a proposed four-year ‘Take back your health’ nationwide educational campaign. As he put it, this will give a ‘clear guideline on how much sugar they should be using.’ More broadly, ‘For those ingredients we cannot ban legally, we are going to start informing Americans about what they are eating. We are going to work with Congress and the White House to make sure we have adequate labeling, so Americans know what is good for them.’”

Results from the recent “IFIC Spotlight Survey: Americans’ Perceptions of Sweetness in Their Diets” from the International Food Information Council (IFIC) reveals a mounting tension between consumers’ enjoyment and health goals when it comes to sweetness in the diet. Nearly six in 10 Americans (58%) prefer sweet as their favorite taste, more than savory/umami (49%), salty (45%), sour (24%) or bitter (21%).

Despite a fondness for sweet flavors, eight in 10 Americans (78%) believe it is important to reduce the overall sweetness of their diet, primarily to eat healthier, manage blood sugar or diabetes, manage body weight and support dental health. Note, this is a survey of preference for sweetness, not necessarily on the source of that sweetness. 

“From a biological perspective, our love of sweet taste makes sense. It’s thought to be an ancient survival mechanism that signaled safe, energy-rich food, like glucose from plants” said IFIC Senior Director of Research & Consumer Insights, Kris Sollid. “As we’ve evolved, navigating our innate preferences and health goals has become more complicated.”

When asked what comes to mind first when they think about sweet-tasting foods or drinks, most Americans mentioned a specific food (39%) or beverage (23%), while far fewer thought of an ingredient or feeling. But their attitudes toward that sweetness are nuanced. While 59% agree that sweet-tasting foods and drinks can be part of a healthy diet, many still support scaling back the overall sweetness of their diets (78%). 

The survey asked respondents what they would expect if they reduced the sweetness of their current diet. The top expectations were improvements in overall health (64%) and the healthfulness of their diet (64%), followed by lower calorie intake (58%) and reduced body weight (55%).

Fereday said, “Even if Kennedy really believes that zero added sugar is achievable, it is improbable that consumers will want to eliminate all (added) sugars from their diets. However, we can probably expect a tapering off in consumption at some point.”

The fact is, sweetness, whether from added sugars or low- and no-calorie sweeteners, plays a powerful role in how we experience and enjoy food. But as the IFIC survey shows, Americans are increasingly looking for balance. 

4. Reformulation Plans Need to be Accelerated. In my opinion, dairy has already been actively cleaning up formulations. Great job. Keep going. 

“Kennedy has made it clear that he is under a two-year timeline to get stuff done. For companies that choose not to push back, that means thinking hard about accelerating their existing programs to clean up their ingredient labels, taking out the artificial and reducing the number of non-nutritive ingredients,” said Fereday. “We have already heard from a few companies, and more will follow. For example, Hain Celestial is already in the coveted position of being able to boast that its U.S. portfolio is already free of artificial colors. PepsiCo reports that 60% of its U.S. food portfolio is already free of synthetic dyes, with their CEO recently acknowledging that they are going to have to accelerate their transition to natural ingredients. WK Kellogg Co has also committed to not launching any new products with artificial dyes from the start of 2026.”

5. The 101st Collegiate Dairy Products Evaluation Contest. California Polytechnic State University students garnered top honors at the 101st Collegiate Dairy Products Evaluation Contest, which was hosted by the Wisconsin Cheese Makers Association during their CheeseCon Show in Madison, Wis. The All Products team title, led by coach Vincent Yung, was also awarded the Shirley Seas Memorial Scholarship and $2,500 from QCS Purchasing Cooperative to support training students. 

Eight schools participated in this year’s contest. The other seven were the Pennsylvania State University, the University of Missouri, the University of Minnesota, the University of Tennessee, the University of Wisconsin-Madison, the University of Wisconsin-River Falls and South Dakota State University. The South Dakota State University team placed second in the Team All Products category and the University of Tennessee team took third place, with several schools bringing home trophies in individual and team product categories.

Novonesis, today’s blog sponsor, hosted a student mixer the evening before the contest. Gary Pieper, technical sales manager at Novonesis, shared thoughts on the contest. 

“The Collegiate Dairy Products Evaluation Contest is a perfect way for individuals, such as myself and the companies we work for, to give back,” he said. “It’s an opportunity to invest in the futures of young women and men and our dairy industry. Many do not realize how many of the judges have collaborated over the decades in the industry. The contest becomes just as much of an opportunity to grow as dairy professional as it is being a volunteer.

“This year was one of my most rewarding years.  I was approached by a young man and his family. This young man was attending one of the participating universities. His family is involved in one of Wisconsin’s family-owned cheese factories. This gentlemen wanted to know how he could get involved as a contestant and his family was just as excited about the opportunity as he was. If that does not warm your heart and confirm you are making difference.”

To learn more about the competition or to get involved, link HERE. 
To read more about the contest and the winners, scroll down below the banner. Thanks Novonesis!

Established in 1916 by several universities, the Collegiate Dairy Product Evaluation Contest initially was designed to identify quality defects in dairy products throughout the country so they could be corrected. It expanded over the years to recognize those students and dairy product judging teams that had mastered the ability to identify high-quality dairy products. The contest gives students the opportunity to showcase their evaluation skills and prepare for careers in the dairy industry.

Product Category Winners
First-, second- and third-place winners were named in each of the six product categories. The undergraduate, graduate and team winners are:  

What’s Next for Protein? It’s Emphasizing Quality. (And guess what, dairy takes the lead!)

 

Dairy dominated many industry events this week, which began with the 2025 ADPI/ABI Annual Conference, and ended with a Chicagoland Food & Beverage Network (CFBN) Innovation Breakfast on Thursday. The latter is where Janet Helm, a food and nutrition consultant, kicked off a panel discussion with marketers of Chicago-based companies that were once start-ups and are now national brands.
If the name Helm rings a bell, it’s because she is the former Chief Food and Nutrition Strategist for Weber Shandwick, who helped turn milk from a commodity to a brand with the iconic got milk? and milk mustache campaigns. At the CFBN breakfast, she identified six movements taking place in food and beverage that are gaining momentum. 

For starters, she said that the growth in tools to identify ultra-processed (UP) foods will add more to the confusion. But, she heeded, UP is not going away from the conversation anytime soon. That’s because the second crusade is the MAHA Mom Coalition. This was my first time hearing about this group. The group’s ideology is not based on science. They have an anti-authority sentiment, and are firm believers in “if you can’t pronounce, don’t eat.”   

Helm chuckled when she shared that the group was challenged with pronouncing “riboflavin,” otherwise known as vitamin B2. At best, Helm said, the Coalition will mainstream clean-label initiatives. 

The next three movements—much more settling, in my opinion—are how the Ozempic phenomenon is inspiring true food and beverage innovation; how consumers are seeking out proactive nutrition through foods with benefits, e.g., longevity, gut health, metabolic health and mental wellbeing; and how protein is evolving from quantity to quality.  

The latter was a hot topic at the 2025 ADPI/ABI Annual Conference. (More on this shortly.)
The sixth and final movement disrupting the food and beverage industry, according to Helm, is the rise of healthy indulgence. She explained that after losing a few years of living life during the pandemic, consumers don’t want to compromise. They are looking for healthful desserts and functional indulgent products.

Dairy checks the box for all six movements. These are innovation opportunities you do not want to miss.

 

Source: Dairy Management Inc.

Before we get back to protein, let’s talk about the Dairy Matrix. That was part of a presentation given by Moises Torres-Gonzales, vice president of nutrition research at Dairy Management Inc. (DMI) at the ADPI/ABI Annual Conference. 

He explained how food provides calories that the body requires to simply run. Food also contains macronutrients (carbohydrates, fats and proteins), micronutrients (vitamins and minerals) and bioactives responsible for critical steps in physiological functions. Scientists are starting to better understand that these nutrients, when present in whole, minimally processed foods, interact with each other, impacting digestion and absorption. In the dairy industry, this is now called the Dairy Matrix effect. (See infographic above.)

“With the Dairy Matrix, the whole is greater than the sum of its parts,” said Torres-Gonzales.
In other words, eating natural whole foods is the optimal way to get important nutrients through the diet. The MAHA Moms would agree. (Trust me, it’s hard to write that, but it’s true.)

Matt Pikosky, vice president of nutrition research at DMI also spoke at the ADPI/ABI Annual Conference. He provided a very thorough explanation of how all proteins are not created equal. (See infographics below.)

Source: Dairy Management Inc.

For background, currently the Protein Digestibility Corrected Amino Acid Score (PDCAAS) is used to assess the quality of all protein. The score is an adjustment for the quality of the protein. It is based on the types and amounts of amino acids in the food as well as the overall digestibility. The PDCAAS values range from 0.0 to 1.0, where values are truncated to a maximum score of 1.00, which cow’s milk, casein, whey, eggs and soy protein all possess. Most plant protein sources have much lower values.

Pikosky believes what many in the industry have long hoped for, that the PDCAAS will be sent to the graveyard and that the Digestible Indispensable Amino Acid Score (DIAAS) will be adapted. The DIASS analysis enables the differentiation of protein sources by their ability to supply amino acids for use by the human body. It also demonstrates the higher bioavailability of dairy proteins when compared to plant-based protein sources.

Consumer research shows most consumers aren’t aware of, or aren’t able to distinguish, that proteins have differences in protein quality. The industry uses the Nutrition Facts panel to communicate the grams per serving of protein. At this time, the only way to show a difference in protein quality is by using the % Daily Value. That’s because % Daily Value for protein is determined using PDCAAS. 

Source: Dairy Management Inc.

Pikosky used the brand Orgain as an example. The brand’s protein shakes are either made with plant proteins or grass-fed dairy proteins. An 11-ounce container of either flags 16 grams of protein on the front panel. At a glance, the consumer may think these beverages are created equal. A turn of the package tells the real story. 

The plant protein variety only provides 18% of the Daily Value for protein. This is determined after correcting the protein content to a PDCAAS of 0.56. The grass-fed option, on the other hand, provides 32% of the Daily Value. No correction needed.

It is possible to reach the Daily Value for protein by eating enough plant proteins and complementing their amino acid profiles; however, with more protein, comes more calories. And calories still count. 

That’s the protein message that needs to be communicated to consumers. It’s all about nutrient density, getting more nutrition for every calorie.  

The amount of protein—dairy and plant—that is getting put into foods and beverages these days is getting to be a bit much. That’s why Helm believes quantity of protein will start to evolve to quality of protein. 

And, well, dairy’s got this. got milk? Make it with Dairy!