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!
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