A Dairy Processor’s Guide to Whole Foods Market’s Top-10 Food and Beverage Trends for 2025

 

(photo source: Milky Mist) Milky Mist believes in the power of dairy. One of the company’s most recent innovations is shelf-stable Milkshakes in Coffee and Butterscotch flavors. They are marketed as “the ultimate pick-me-up for your day! Guaranteed to keep you refreshed all day, indulge in pure delight with every sip.” The company states its healthy beverages are not only rich in taste, they provide calcium, potassium and protein, among other nutrients.

The Global Dairy Food Market size is estimated to grow by $88.1 billion from 2024 to 2028, according to Technavio. The market is estimated to grow at a compound annual growth rate of more than 2% during the forecast period. 

Consumer interest in healthful, minimally processed, natural, whole foods is driving this growth. The report states that the dairy foods industry is thriving with trends like milk, yogurt, cheese, spreads and ice creams leading the way. Nutritional value is a key focus. 

Lactose-intolerant consumers are finally feeling the love from dairy processors thanks to the plethora of lactose-free offerings that rolled out this past year. Thank you! 

If you have not heard of Milky Mist, check them out HERE.

“Milky Mist is dedicated to spreading the daily dose of nutrition, all day, every day. From being the initial ingredient to delivering the finishing touch, we make sure our products add the nutritional value you deserve. With our range of 300+ products, we’re committed to making India, a healthy India.”

“Daily dose of nutrition,” hmm, wonder if they read my blog. 

Innovative fermented dairy products, with probiotics and prebiotics, along with added vitamins, minerals, bioactive peptides, specific proteins, conjugated linoleic acid, antioxidants, organic acids and more are being embraced by all consumers, according to the Technavio report. Consumers finally get probiotics and they are turning to dairy for their daily dose. 

Whole Foods Market recognizes the nutritional value of dairy done correctly. Look at the opportunities for dairy in the natural and organic foods retailer’s 10th annual trends report.

The Whole Foods Market Trends Council--a collective of more than 50 Whole Foods Market team members ranging from foragers and buyers to culinary experts--develop these trend predictions each year through a combination of deep industry experience, keen observation of consumer preferences, and collaborative sessions with emerging and established brands.

Here they are. Explore how dairy fits in. 

1. International Snacking
The snack aisle is a perfect place for disruption with brands taking on salty snacks and adding global flavors to create fusion foods that have mass appeal and entice consumers to try something new. This is so much more than yogurt-covered raisins. Think freeze-dried kulfi in flavors such as mango or pistachio. Baked cheese snacks need to push flavor boundaries. I welcome a hot honey 100% cheddar crisp. 

2. Ever-Adaptable Dumpling
Dumplings are dough pockets with a typically savory filling, usually cooked by boiling, steaming or pan frying. Also known as pocket foods, they’re showing up in multiple aisles including frozen and shelf-stable, single-serve formats. These products hit on a few trends. Many are authentic to a founder’s cultural roots and ripe for fusion and unexpected mash-ups, which have continued popularity both on TikTok and restaurant menus. Dumplings are long-standing staples in cuisines across the globe, making them a trend everyone can feel involved in and get excited about.

You know what goes great with pierogis, the Polish dumpling? It’s sour cream. (Being 100% Polish, I know.) There’s a lot of room for innovation in dumpling dipping sauces based on dairy. I hate to be repetitive, but why is no one doing a hot honey dairy dip? This sounds like an amazing accompaniment to Asian dumplings, heck, even potato cheese pierogies. (I make the best.)

3. Crunch: Texture of the Moment
It’s time for those dual compartments and dome cups of yogurt, pudding and dairy desserts to provide something more than cookie crumbles. Enough said.

This week, my friends at Maple Hill Creamery, America’s original 100% grass-fed organic dairy company, announced its partnership with Purely Elizabeth. With Maple Hill’s Grass-Fed Organic Greek Yogurt, consumers are enjoying yogurt as nature intended, packed with a 50% higher ratio of omega-3 to omega-6 fatty acids and 40% higher levels of conjugated linoleic acids, which contribute to potential health benefits, including a lower risk of heart disease. The yogurt is a great canvas for Purely Elizabeth’s Pumpkin Cinnamon Ancient Grain Granola, a gluten-free, non-GMO blend crafted with organic oats, coconut sugar and pumpkin seeds. 

4. Hydration Hype
The Whole Foods Market Trends Council reports that consumers want more from their water these days. They are seeking added electrolytes and hydration in more innovative forms. Think clear whey protein waters. There are not enough of these out there and they are limited to the health food aisle. Start selling hydration in the fluid milk case.  

5. Tea’s Time
There’s tea talk everywhere you turn, both as a beverage and in flavor popularity. The Whole Foods Market Trends Council identified a number of dairy players in this space. They are Heritage Kulfi Cardamom Chai Ice Cream, Kola Goodies Sri Lankan Milk Tea Latte, Van Leeuwen Blue Jasmine Tea Ice Cream Bars and Bubbies Milk Tea Mochi. This is a HUGE opportunity. Enough said. 

Oh, and in case you forgot, dairies can process ready-to-drink tea, too. 

6. Next-Level Compostable
Products that aren’t ditching packaging completely are going the compostable route, making some or all elements of their packaging compostable. Don’t be shy. Share your packaging story. 

7. More-Sustainable Sips
Well, OK, this trend focuses on forward-thinking boozy brands that are working to reduce their environmental footprints. Natural and organic wines may not be new, but brands are taking things a step further by embracing regenerative practices and lower-impact packaging. And guess what, so are dairies.

This week, Challenge Dairy announced its commitment to sustainability by integrating electric vehicles (EV) into its delivery fleet. As part of its dedication to reducing its carbon footprint and complying with California’s evolving emissions regulations, the company plans to deploy three EV trucks by the end of 2024, with the goal of achieving a 100% electric fleet by 2035. 

Transitioning to EV trucks will significantly reduce diesel consumption, with each truck expected to save approximately 3,000 gallons of diesel annually. This transition translates to a reduction of around 30 metric tons of carbon dioxide emissions per truck each year, directly supporting Challenge Dairy’s sustainability goals and contributing to improved air quality in the San Joaquin Valley.

8. Sourdough Stepped Up
During the pandemic, we saw a sourdough resurgence with at-home bakers trying their hand at the classic fermented bread. This trend is moving into grocery aisles in both traditional and innovative ways with customers looking for the benefits and flavor that sourdough offers without spending hours in the kitchen. 

There has to be a dairy opportunity here. Someone out there, please figure it out. Sourdough-flavored buttermilk? 

9. Plant-Based Aquatic Ingredients
With the continued popularity of seaweed and the increasing interest in harvesting readily available aquatic plants for more-sustainable sources of protein and nutrients, the tide is turning toward foods made with more sea and freshwater greens. Sea moss, in particular, has been making a splash as a buzzy wellness ingredient—especially touted for its iron, magnesium and iodine content—in formats such as beverages and gummies. Duckweed, or water lentils, is in the early stages of emerging on the scene and boasts a higher protein content than other leafy greens, and agar-agar (a plant-based gelatin alternative that comes from red algae) is primarily fiber based and promoted for digestive support. 

It is challenging for me to brainstorm on how delicious dairy can go with seaweed. (I am not a fan.) But, something makes me think that dried seaweed makes for an interesting inclusion. Think “Trend #1 International Snacking”  and “Trend #3 Crunch: Texture of the Moment.” Maybe it could be a mix-in for a sourdough-flavored dual compartment yogurt?  

10. Protein Power-Up
Consumers are looking to incorporate more protein in their diet beyond traditional powders and bars, with an emphasis on ramping up protein consumption at meal times and with “whole food” snacking. Recipes incorporating cottage cheese (still the “it girl” in dairy) may have kick-started customers’ desires to seek out protein in whole food sources, with consumers now prioritizing animal protein. Enough said! 

Dairy Wins Big in Vegas this Week

 

(photo left) Young shoppers are looking for experiences and are willing to spend on premium products. These mini donut milkshakes were served as a snack at GroceryShop. Real milk. Real ice cream. 

 

“The next five years are going to be phenomenal,” said Sherry Frey, vice president-product insights at NielsenIQ, when speaking at GroceryShop on Monday, October 7.

For starters, she showed that sales are up in the perimeter of the store. You know what’s in the perimeter? It’s dairy. (See chart below.)

She also showed that “Better For” is once again outpacing conventional. You know what’s Better For? It’s dairy. (See chart below.)

She showed how there will be critical shifts in generational spending over the next five years. (See chart below.)

She explained that while the conversation often refers to generations, it’s really about the life stage that the generation is in and how they are handling it. 

Boomers have been trying to defy aging for the past 20 years. They are starting to realize that maybe it’s not a good thing to have their bodies outlast their brains. Younger generations will likely address aging in a different way, and that starts now.

“Today’s consumer is more intentional than ever,” said Frey. “Keep your eyes on the Millenials and where they are in their life stages.”

Key takeaways from her presentation include:

• Spending is being directed to where it matters most in the great shift from cautious to intentional spending.
• The most valued products deliver in multiple ways to multiple consumers.
• Changing priorities will drive the innovation requirements in the future.

Ram Krishnan, CEO of North American Beverages for PepsiCo also spoke at GroceryShop. He discussed the challenges of building brand loyalty in an era of fickle shoppers. He described today’s shoppers as having “precision loyalty.” They are loyal to what works for them. 

 

(photo left) Shamrock Farms said its single-serve milks and protein-enhanced milks are rockin’ in retail and the c-store channel.

David Portalatin, senior vice president-food and foodservice industry adviser,  Circana, spoke at a MilkPEP webinar on Thursday, October 10. He shared highlights from the hot-off-the-presses “Eating Patterns in America” report. He explained that in-home beverage consumption continues to grow as away-from-home remains stable. Overall, annual beverage-drinkings-per-capita is 1,504, as compared to 1,482 in the 2023 report. This is not volume. This is the occasion of putting a beverage to the mouth and drinking. 

“Consumers are looking to beverages to satisfy various needs,” said Portalatin.

They are: Hydration, Energy, Source of Protein and Source of Treat or Reward.

 

(photo right) Spylt—the original caffeinated, protein-enhanced flavored milk—had a very strong and active presence at NACS. The product appeals to the growing e-sport sector. To read more about e-sports, link HERE.

 

Fluid milk is the ideal base ingredient to speak to what today’s consumers want from their beverages. Convenience channels and grab-and-go retail merchandising is a great place for milk-based beverages. 

Convenience stores saw record sales in 2023, according to the National Association of Convenience Stores (NACS), which hosted the 2024 NACS Show at the Las Vegas Convention Center from Oct. 7-10. Total convenience industry sales in 2023 were $859.8 billion, of which $327.6 were from in-store sales. The average basket—what customers spent per visit—increased 3.7% to $7.80.

(photo above) Chobani, and its recently acquired LaColombe business, make milk fun. Both brands have new dairy beverages rolling out soon.

This year’s theme—We Are Convenience—reminded c-store operators that they are selling a concept, and that is convenience. Historically, convenience meant stopping for a gallon of milk or a loaf of bread on the way home from work. Today, convenience equates to foodservice, beverages and snacks. Dairy plays in all three.

(photo right) Sargento is all about snacking cheese. The c-store channel represents a growth opportunity. 

To read more about “Redefining the c-store experience,” link HERE to an article I wrote on this topic for Food Business News.

Stopping at the c-store for a gallon of milk and a loaf of bread on the way home from work was something those who stayed at the Tropicana did, which I watched implode in the wee early hours of October 9. Get inspired by watching a 7-minute VIDEO of the Tropicana hotel imploding, taken by yours truly. There’s no going back. The time is now for the Future of Dairy. It's time to Rethink Dairy.

Dairy is Not a Trend. It’s the Future of Nutrition and Innovation.

 

Trends come and go, while taste always reigns. Nutrition is increasingly being prioritized by today’s consumers and is fueling the future of food innovation. 

Health-conscious consumers are driving a staggering $638 billion in food and beverage spending, with $363 billion allocated to retail and $275 billion to foodservice, according to Circana’s Complete Food & Beverage research released this week. This data highlights a growing trend in the wellness movement, with one-third of all food and beverage spending now driven by consumers prioritizing physical, mental and social well-being. 

“Consumers are looking for wellness across every aspect of their lives, and food and beverages are playing a critical role in this transformation,” said Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. “Our Complete Food & Beverage research shows that while the retail sector is excelling at meeting these needs, there is significant opportunity for foodservice providers to innovate and offer wellness-centered dining experiences.”

Consumers are increasingly seeking fresh, nutrient-dense foods that promote physical health, according to the research. Retailers are responding by offering a variety of minimally processed products high in protein, fiber and natural ingredients. Think milk and all things dairy!

In contrast, wellness influences only 11% of foodservice meals, as dining out remains more focused on convenience and indulgence. This presents an amazing opportunity for dairy in the out-of-home channel.

Thirty-five percent of consumers view food as an important tool for managing stress and improving mood, driving increased interest in functional foods and beverages that support mental health, according to Circana. While retailers are capitalizing on this trend with expanded assortments of relaxation beverages and mood-enhancing snacks, both retail and foodservice are providing treat-based indulgences, such as bakery items, candy, and yes, ice cream, which are often go-to items for emotional well-being. 

(click on graph to enlarge)

The rising trend of “eatertainment” is changing the way consumers experience dining, blending food with social interaction. This is particularly strong in foodservice, where chains are adapting to meet consumer demand for experiential dining. Retailers are also supporting social wellness by hosting community-driven events, helping consumers integrate physical health with social engagement.

It’s no wonder Milk Bar is expanding into my hometown. Read about this below.

As consumer demand for wellness grows, dairy foods formulators have the opportunity to innovate by expanding their offerings to better align with physical, mental and social well-being. Listen to the on-demand Circana webinar on this topic by linking HERE.

Packed with 13 essential nutrients that we all need to thrive and live healthy lives, along with being absolutely delicious, milk and products made with milk and milk ingredients, are part of the solution to addressing hunger and food insecurity. Listen to how dairy industry leaders are tapping into milk’s nutritional potential to address nutritional challenges. Link HERE to this week’s episode of The Dairy Download. 

Milk Bar Is Coming to Chicago

Milk Bar, the rule-breaking dessert company with New York City origins, is finally expanding to Chicago, my hometown and the location of many dairy- and food-centric associations, businesses and conferences. The Chicago location will be in the Fulton Market District at The Hoxton hotel. The shop will feature its full dessert menu along with Chicago-specific treats. Milk Bar was founded in 2008 and has more than a dozen locations in cities outside of New York, including Los Angeles, Boston and Washington D.C. 

“I am a Midwesterner by birth and Chicago has long been one of my favorite cities to visit. Food, culture, sports and art, the city is teeming with real people doing real things their way: creatively, honestly and inspiringly,” said Christina Tosi, Milk Bar founder and award-winning chef. “We promise to show up with passion, enthusiasm and care, serving delicious cookies, cake, pie and ice cream early in the morning until late at night. Chicago, we can’t wait to show up for you. We can’t wait to call you home.”

Tosi spoke a number of years ago at the International Foods Association’s Ice Cream Tech Conference. She believes in the power of dairy. Even her baked goods rely on real butter. 

This summer, Milk Bar teamed up with Tropicana to make a limited-time-offering. The soft-serve, Orange Squeeze is a nostalgic cream-meets-citrus flavor. A cup sold for $7 and a pint for $13.

“I grew up racing to the ice cream truck to score my favorite creamy, orange and vanilla flavored bar,” said Tosi. “Orange Squeeze is our take on that childhood classic, transporting you back, Milk Bar style, to sweet summer memories of that bright, fresh-tasting combo.”

The pandemic required that Tosi pivot her café business into retail pints. She started with four of the café’s most popular ice creams flavors. Soon, three others followed as the brand gained national distribution. 

Like novelty cups, pints present a package size that readily accommodates lots of inclusions along with unique textures, as compared to larger multi-serve containers that may get too messy when overwhelmed with extras that impact the frozen state.   

The four original pints included Birthday Cake, a birthday cake-flavored ice cream with birthday cake crumbs and ribbons of birthday frosting. The Cereal Milk ice cream base tastes like the bottom of the cereal bowl with some extras in the form of a salty-sweet cornflake crunch. Cornflake Chocolate Chip Marshmallow is an ode to the Milk Bar’s bestselling cookie. It combines cornflake crunch, chocolate chunks and gooey marshmallow swirls throughout a cookie dough ice cream. Milk Bar Pie is vanilla ice cream with swirls of a gooey butter filling and toasted oat crumble.

The three additional flavors are Peanut Butter Chocolate Cookie Crush (peanut butter chocolate ice cream with peanut butter cookie crumbs and fudgy chocolate cookie batter); Chocolate Mint Cookies N’ Cream (chocolate mint ice cream, chocolate cookie batter, cookies n’ cream crunch and creamy mint swirl) and Vanilla Sugar Cookie (vanilla cookie swirled into an ultra-creamy pint of vanilla-flavored ice cream with sugar cookies and a frosting swirl).

“I have dreamed about bringing Milk Bar to the freezer section--the holy grail of the supermarket in my opinion--for nearly a decade. I knew coming in now, we’d need to do more than bend pieces of our finished treats into an ice cream pint. So we toiled and tinkered, taking our favorite flavor profiles and imagining them through ice cream bases, swirls, gobs, fudges, frostings, crumbs and crunches to create our proudest on-shelf creation yet,” said Tosi, when the line debuted in June 2021. “Our ice creams are meant for the unapologetically indulgent moments and mean serious business, no two are alike. Whether we already have a place in your heart or you’re looking for even more joy and spirit in your ice cream bowl, we got you!”

Idaho Milk Products is Becoming an Ice Cream Co-Packer

To help more ice cream creators turn their innovations into reality, Idaho Milk Products, today’s blog sponsor (thank you!), is constructing a $200 million dual ice cream and powder blending facility at its Jerome, Idaho, campus. The company’s entry into the ice cream business comes with a focus on premium indulgent and functional recipes in both bulk and novelty formats, while blending capabilities will support the ice cream business and create capabilities to provide custom formulations to both existing and new customers.

“Construction of the custom-designed 183,000-square-foot plant will commence within the next two months and be substantially complete by early 2026 with full commercial production by May 2026,” said John Murphy, vice president of operations at Idaho Milk Products. 

Commenting further on the company’s commercial strategy, Kevin Quinn, vice president of sales and marketing, said, “We have the freshest, best-quality cream in the market, and the project was initially born out of the conviction to add incremental value to a portion of that product stream. The inclusion of a blending facility in the new plant creates new ways to service our customers and add to the benefits of our vertically integrated model.”

The team at Idaho Milk Products believes that this project builds on the company’s purpose, is a natural extension of its existing model and has the potential to create one of the world’s most sustainable ice cream businesses. A groundbreaking event will take place October 11, 2024.

“We will be able to produce a variety of novelty products, including sandwiches and stick bars and have the capability of producing various carton sizes from less than pint to half a gallon,” said Louis Armstrong, ice cream business manager. “We intend to co-manufacture various ice cream products in partnership with brands’ or retailers’ needs. Our plant, at scale, will have the capacity to produce roughly 14 million gallons of ice cream mix per year into various frozen formats.”

Daragh Maccabee, CEO of Idaho Milk Products, said, “Our commitment to our core business remains. We work hard every day to maintain our position as a global leader in milk protein concentrates (MPC) and milk protein isolates (MPI). At the same time, we constantly seek out new ways to add value to our milk, always doing so in a way that is sustainable for the longer term. Our vision for this plant is to build on the strength of our existing business, leverage our Milk Innovation Center, the strength of our R&D team and the unique synergies that this business will create.”

The Many Reasons to Use a Co-Packer

The dairy foods industry is overflowing with entrepreneurs, which is a beautiful thing. Innovative product development and healthy competition keeps the dairy case exciting and consumers interested in all things dairy. 

Early in the process of innovation, startups must decide whether they want to invest in processing, packaging and warehousing (to have control over the operation as well as secure any proprietary technology) or to partner with a contract manufacturer, aka a co-packer. 

More times than not, entrepreneurs and smaller manufacturers choose to partner with an expert to manufacture their products. There are many reasons why this is the smarter option. 

The most obvious reason is that this option reduces capital investment and assists with cash flow, freeing up dollars for marketing efforts to build brand awareness. Co-packers are also experts at what they do. This frees up man power and brain time, reducing energy spent on learning the process and troubleshooting common production issues. 

Before you begin interviewing potential co-packer partners, it is paramount that you identify those criteria that are non-negotiable and those where there’s flexibility. Keep in mind, co-packers vary in capabilities. Decide if you want to source ingredients and packaging, or if you prefer the co-packer do this for possible bulk pricing benefits. 

Speaking of pricing, determine your cost structure. Discuss potential hidden expenses.

Set quality standards. Identify product and package specifications, including shelf life requirements, as well as certifications such as allergen-free lines, kosher, organic, etc.

Safety, quality and record keeping are not negotiable in this day and age. Do your homework. Evaluate the co-packer’s safety and sanitation procedures. Do they have a HACCP plan? Are they compliant with the Food Safety Modernization Act? Is the manufacturing facility regularly audited by an accredited firm? Is the co-packer prepared to properly handle a recall?

Ask for referrals. Find out how reliable the co-packer is for scheduling production. How far in advance do you need to confirm schedules?  

Then there’s that gut feel we all have when doing business. Do you feel that the co-packer will work with you when issues arise? Troubleshoot with you? Communicate in a timely manner? In general, the more transparent a co-packer is willing to be, the more trustworthy the partnership will be. This is even more important when proximity is an issue. 

Remember, if you are prepared and do your homework, it will be easier to identify the best co-packer for your innovation. Your chance of success increases. 

Dairy is not a trend. It’s the future of nutrition and innovation. 

2025 Food and Beverage Trends Forecasts Suggest Dairy—even Fluid Milk--Is Going to Rock!

 

It’s been an amazing dairy week that started on Sunday when the woman in line behind me at the supermarket had a cart full of dairy foods. I know, I should have taken a picture. But I was so engrossed in the conversation, that I forgot it’s the year 2024 and we are expected to take a picture of everything and share it on social media. Forgive me, you are going to have to trust me that this happened.

She had four red bottles of Fairlife whole milk, three boxes of Stonyfield kids’ yogurt pouches, numerous cheese snacks, some ice cream and there was more, I just don’t remember what.
I had to ask her about this picture-perfect cart. I did preface that I work in the dairy industry so she did not fear I was some PETA crazy who was going to go off on her. 

She explained that her 15-month old daughter loved dairy. It’s all she will eat. So she tries to mix it up, even adds some mashed veggies into the vanilla ice cream. Then she justified it, which, of course, to me, was not necessary. She explained that whole milk dairy foods have healthful fats for brain development, along with protein, vitamins and minerals for strong bones and proper growth. I walked out of that store with the biggest smile on my face that has lasted all week. (I am still smiling!)

Two days later, I was at a family farm in Upstate New York that supplies 100% grassfed organic milk to Maple Hill. Yep, that’s me and one of the happy cows. You can read about how “Maple Hill is embracing sustainable practices to differentiate” HERE. 

When Tim Joseph founded Maple Hill Creamery in 2007, “grass-fed dairy was not cool,” he said on Sept. 24, during a media tour of Dharma Lea, Maple Hill’s first family farm. “Vets were not fans of 100% grass-fed herds, because the cows were healthier and that was not good business for them.”

Maple Hill is the marketer of America’s first national brand of 100% grass-fed organic fluid milk, yogurt, kefir and butter, one of the fastest-growing categories in dairy. Whole fluid milk, in general, is also driving dairy sales growth. That’s mostly what Maple Hill sells.

“And our whole milk plain yogurt outsells vanilla (the only flavored offering) by a factor of 10,” said Jim Hau, president of Maple Hill.”  

In case you missed it, the Dairy Market Report from Dairy Management Inc., and National Milk Producers Federation came out this week. It states that “over the 10 months beginning in October 2023, monthly total U.S. fluid milk consumption compared with the same month one year earlier rose more often than it didn’t, a strong contrast with historical norms. In 57 months since the beginning of 2019, a positive monthly rise has happened less than one-sixth of the time. This recent strong demand raises the possibility that fluid milk consumption may rise overall for 2024, as up months outstrip down ones, bucking a five-decade trend that was only briefly interrupted by oddities related to the COVID-19 pandemic. Meanwhile, domestic use of yogurt, butter and total cheese, especially other than American types, showed positive growth during May to July.”
 

This all makes sense after listening to numerous 2025 trends forecasts this week while soaking up some of the final sunshine of the never-ending summer of 2024 on my deck in Chicago. I was still smiling from that supermarket encounter. 

My colleagues at Sosland Publishing produced The State of Food and Beverage Innovations webinar featuring results from a survey of 224 food processing industry professionals during March and April 2024. Results showed that “innovation is important.” In fact, 40% of those surveyed said it is “very important.” 

The top-five trends influencing a food company’s product development/research and development strategy for the next 12 to 18 months are: cost reduction (59%), clean label (53%), convenience (50%), ingredient reduction, e.g., sodium, added sugars, etc., (43%) and health and wellness (42%). 

Clean label is the norm, and those not on board will likely regret it in the near future. Most dairy foods are super-uber clean label. Those that are not, need to get busy. However, “clean label has moved beyond ingredients.” Read more HERE in an article I recently wrote for Food Business News.

The Sosland innovations study, which was conducted by Cypress Research, compared results from 2024 to the last study conducted in 2022. It is safe to say that true innovation is on full throttle ahead and dairy processors need to get busy to give consumers what they want.

When asked about “invention” innovation, which is breakthrough product development typically involving the introduction of new brands and/or applications, 67% of respondents in 2024 said this is an active effort, while only 59% said the same in 2022. Two years ago, the efforts were more towards product reformulation within existing brands and categories (71% in 2024 vs. 76% in 2022). In other words, formulators were cleaning up labels. Now there is focus on new products within existing brands and categories, a.k.a. line extensions, and probably of clean-label products (91% in 2024 vs. 88% in 2022).
So what are all those inventions focusing on? A forecast webinar by Innova Market Insights indicates one of the hottest areas of innovation is “nutrition forward.” 

“Consumers are much more engaged with the positive role of nutrition,” said Lu Ann Williams, global insights director at Innova. “And, weight management is back. The focus is on what is natural.” 

(Milk is au natural! Just look at mom and baby at one of Maple Hill's family farms.)

This new nutrition research from Innova surveyed consumers across 11 countries and they were only able to choose one answer when asked about how they seek out healthier eating approaches. The four options were almost equally split. 

“About half of consumers look at function rather than reduction,” said Williams. 

This is positive nutrition. It’s the “what” in the product that will do me good. Of that 50% of respondents, about half seek out inherent nutrition in foods, while the other half is drawn to fortified and nutritionally enhanced foods. 

Williams refers to the inherent nutrition products as “hero foods.” Think fruits, vegetables, nuts, whole grains, and, yes, dairy foods.

The other half of consumers look at foods with fewer of the negatives, with half finding appeal in products formulated to have “less added sugars,” “less sodium,” etc. The other half look for foods naturally lower in negatives. 

“Consumers are into ‘natural’ when it comes to well-being,” said Williams. “Clean label has stuck. The overall trend has grown from taking out things that are not natural to putting more in of what is natural.”

(Milk and foods made with milk may help consumers connect with nature. It's a story to tell.)

 

When it comes to weight management, expect a lot more going on with portion control. (This plays into that convenience effort in the Sosland study.) But here’s where it gets very interesting. Both Innova and the speakers at a Tastewise webinar on 2025 trends said that hyper-personalized nutrition has arrived. This includes genderized foods and beverages, as well as hormone regulation. 

“Consumer knowledge (of diet and the impact on hormones) has ‘woken up,’” said Miriam Aniel Oved, director of marketing communications at Tastewise.

This includes the role of foods and food ingredients that influence stress hormones, muscle function, weight loss, satiation and more. The GLP-1 weight loss drugs lifted the taboo on talking about hormones for both men and women. Products formulated for gender and age will gain momentum this coming year. 

Dairy foods can be formulated to speak to all of these trends. Also, a simple glass of whole milk speaks to these trends, naturally. 

The Future of Flavor Innovation

 

 

 

There’s big business in limited-time offerings (LTOs). Offering a product in a controlled quantity makes consumers curious and creates an urgency to purchase. Limited-edition flavors invite consumers to experience something new in a familiar format. Sometimes, they provide shock value and create a social media frenzy. They can also provide a test market and encourage shopper engagement. They are an excellent tactic for brands to connect with people. 

I tasted one of the most impressive flavor innovations in a long time: the new OREO Coca Cola Sandwich Cookie. Now, I did not say I liked it. But it was purchased, tried and shared. It was a conversation starter. 

That’s the future of flavor innovation.
 

 

In case you missed it, Coca Cola and the OREO brands teamed up as “besties” to create two exclusive and limited-edition products: the cookie and Coca Cola OREO Zero Sugar Limited Edition. I only tried the cookie and, well, because I want you to buy it and try it, I won’t spoil it. But I promise you, the formulators pulled it off, carbonation and all!

This new combo is all about the future of flavor innovation. It’s unexpected mashups in terms of tastes and products, all with a heavy dose of influencing. 

 

I belong to a food influencer group—Tastemaker News--that held workshops this week. The organizer said, and I agree, “Because conversations about the importance of influencer marketing are taking place more and more, which means legitimacy of our industry continues to grow and take hold... and there are even predictions by some that majority of marketing will be influencer marketing in 10 years. Influencer marketing is not only here to stay. It’s an essential component of the evolving creator economy that can help to make or break today’s brands. Brands must embrace collaboration and place trust in their creators’ understanding of their audiences. While platforms will evolve and new trends will emerge, cultivating strong relationships with creators will help brands remain resilient and adaptable in the dynamic digital world.”
 

So there you have it. I am thrilled to say that I was influencing before the term influencer, as it relates to foods and beverages, was coined. You know who else has been influencing for many more years? It’s Ben Cohen and Jerry Greenfield, the co-founders of Ben & Jerry’s Ice Cream. This week, they went there. (Thank you!)

In case you missed it, Ben and Jerry, independently from the brand that is currently owned by Unilever but will likely be an independent business some time in 2025, partnered with MoveOn to “Scoop the Vote.” They released a new limited-edition ice cream flavor called Kamala’s Coconut Jubilee under the Ben’s Best label. It’s a coconut ice cream base with fairtrade chocolate chunks, a caramel ripple and confetti stars. The flavor symbolizes the fight for racial and economic equality.

Ben  and Jerry have long been influencers and advocates for progressive causes. The two, and the brand, have often partnered with influential figures to raise awareness around key social issues. This latest flavor is expected to draw attention for its rich coconut taste and the message it carries.

The product is a partnership between Ben, Jerry, Jeni Britton (Jeni’s Splendid Ice Cream) and Pooja Bavishi (Malai Ice Cream) with MoveOn to increase voter turnout and support the Democratic candidate for president. IN addition to being available at retail and online, the new flavor is embarking on an ice cream truck tour across the country, stopping at battleground states to serve free scoops of Kamala’s Coconut Jubilee to “Scoop the Vote.”

Back to the OREO and Coca-Cola Bestie collaboration, it’s all about partnerships and influencing. The significance of celebrating friendships—besties--has never been more pertinent, and these two brands are championing it, as besties often become a combination of their very best traits, making each other even better together. 

“Being a groundbreaking partnership for both brands, we are excited for besties everywhere to join us in celebrating new products, amazing experiences and surprising moments of connection,” said Claudia Navarro, Marketing President at The Coca Cola Company Latin America.

Another partnership debuted this week, this one between The Frozen Farmer and Mattel. New Barbie Ice Cream pints put a cool spin on flavors just as iconic as Barbie. The four new ice cream pint flavors bring fun, fashion and flair to the frozen aisle. They are Beachhouse Brookies and Cream (cookies and cream ice cream with brownie pieces), Dream Orange and Cream (sweet vanilla cream ice cream mixed with orange sorbet), Pink Party Cake Pop (cake batter-flavored ice cream with sprinkles and vanilla cake pop pieces) and Raspberry Cupcake (buttercream cupcake-flavored ice cream with cupcake crumbs and raspberry jam swirl). All pints are packaged in a vibrant Barbie pink to appeal to brand fans from every generation. 

“As a mom to four daughters and the proud founder of a women-owned and operated business, Barbie has always inspired me to chase my dreams and embrace limitless possibilities,” said Katey Evans, founder of The Frozen Farmer. “I grew up playing with Barbie dolls, and they helped plant  the seeds of self-belief that I could do anything, like start The Frozen Farmer; now it’s a full circle moment to come together and partner with Mattel.

“These ice cream flavors will make any day feel like a celebration—just like how Barbie lives authentically with kindness and positivity,” said Evans, who notes that her favorite is the Pink Party Cake Pop. “It’s a real party in your mouth!” 

Evans, who landed an investment deal with Lori Greiner on ABC’s “Shark Tank” in 2020, co-founded The Frozen Farmer from her Sunday supper table, and has turned the ice cream brand into one of the fastest growing in the U.S.
McConnell’s Fine Ice Creams began a mashup campaign this week encouraging online shoppers to purchase two different pints to create their own personal mashup. These mashups will hopefully get the company to offer LTO mashups with both flavors in one package in the very near future. 

Imagine, pumpkin pie with spiced cranberry. Happy Autumn!

The Future of Fresh Includes Real Dairy. Real is Back.

 

It’s Friday the 13th! Be safe! Don’t walk under a ladder! Watch out for black cats crossing your path And, keep up the great work selling fresh, convenient dairy foods. 

First, did you know that Real Dairy Milk is  fueling innovation in the esports nutrition space? The Milk Processor Education Program (MilkPEP) is working to get milk marketers to integrate milk into the gaming space as the “performance drink of gamers,” especially with younger consumers. Read an article I wrote on this topic for Food Business News HERE.

Earlier this week, Deloitte published the sixth edition of its annual assessment of the state of fresh food. You can access “A fresh (food) take on grocery convenience” HERE. Deloitte’s findings are all about grocers bringing “fresh convenience” to consumers as they plan their meals, choose where to shop and select their food. The survey was conducted in May and June of 2024. Responses came from 100 U.S.-based grocery retail executives from organizations with at least $1 billion in annual revenue and 2,000 U.S. consumers.

Many of the findings complement the latest “got milk?” campaign from the California Milk Processor Board called “Real is Back.” You can link HERE to the website and view the two one-minute clips. I promise they will put a smile on your face. 

“Where there’s milk, there’s togetherness. And nothing nourishes more than a Real moment of connection. Real is back. Happiness is back.”

 

Key takeaways from the Deloitte report are:

• Consumers seek simplicity when it comes to food purchases. Fifty-two percent of respondents say they value convenience now more than they did in the past. This sentiment is more prevalent among millennials (57%) and Gen Z (61%), indicating a lasting trend.

• Similarly, grocers recognize the value of easier options, as more than eight in 10 (84%) agree successfully competing on convenience is key to increasing unit sales volume.

• More than half (53%) of consumers surveyed say that figuring out “what’s for dinner” is one of their major pain points, and 44% would regularly buy from a grocery store that could help them with meal planning.

• 
  Grocers are recognizing the importance of fresh food, as more than half (52%) of grocery executives expect fresh to be their most strategically important department over the next one to three years. The produce, deli and meat departments lead this charge.

 Dairy products need to be in these places. Get dairy dips and dressings into the produce department. What about sour cream by the baking potatoes? Culinary cooking butters can be sold in the packaged meat case. The deli department also tends to be a grab-and-go lunch destination. All types of single-serve dairy products have a place here.

• Nine in 10 U.S. consumers say fresh food makes them happy, and two-thirds (66%) would pay a premium for fresh food. On average, shoppers say they would pay 22% more for fresh over the alternatives, such as canned, frozen or other options. (The only canned dairy product I am aware of is Cougar Gold Cheese produced at the Washington State University creamery. It is delicious!)

Dairy marketers need to market the freshness of Real Dairy. Most dairy products are already convenient.  

• When it comes to deciding between either fresh or convenient food, ease often wins. Eighty-two percent of shoppers say convenience drives their fresh food decisions. In addition, two-thirds (67%) of consumers say that on busy days, they buy more convenient food items, even if they are not healthy (or fresh).

All of this must be taken into consideration by dairy marketers as grocery retailers are working to navigate a new wave of change that is challenging their conventional business models. Grocers understand the value of convenience as 85% say they are making significant investments to increase it. 

They want to stock fresh, convenient dairy foods. They are a great value and, well, you know the rest. They are delicious and nutritious.  Be safe! Happy Friday the 13th!

Dairy’s Role in School Lunches and Healthy-Aging Products. And, Cottage Cheese Continues to Boom.

 

In case you have not heard, California is getting ready to ban artificial food colors in its schools. The California Assembly voted to pass California Assembly Bill (AB) 2316, named the California School Food Safety Act, on Aug. 29, 2024. The bill is waiting for Governor Gavin Newsom to sign it into law. Once passed, the legislation would go into effect Dec. 31, 2027. It will make it illegal for public schools to offer food to children that contain any of six artificial dyes--red 40, yellow 5, yellow 6, blue 1, blue 2 and green 3--due to their potential developmental and behavioral harms to children. 

“Consumers everywhere are voicing a clear preference for naturally derived rather than artificial colors and are craving a return to more wholesome foods and beverages,” according to Caroline Schroeder, head of global marketing at Lycored, today’s blog sponsor. “We’re excited for customers, scientists and food experts to meet their new best friend: ResilientRed BF.”

This naturally derived lycopene-based red shade is sourced from tomatoes and ideal for ultra-high temperature (UHT) pasteurized dairy and plant-based beverages. It provides resiliency and stability across pH, light and heat extremes, and offers a viscosity for easier flowability. For more information, link HERE or on the banner ad. 

Think strawberry milk served in schools, especially in California. Think refreshing, healthful-aging beverages for women. 

As someone who does not care for chocolate, I’ve always opted for strawberry flavor, when available. Now, with cocoa prices expected to remain out of control until way into 2026, food and beverage companies are getting creative with local flavors and domestically grown crops. This is apparent in what the dairy and alt-dairy industries are experiencing this autumn. 

Check out these two adult-centric dairy beverages from Thailand. Mary Anne Dairy Products Co., Ltd. offers lactose-free UHT M Milk Rose Black Tea. Each 180-milliter refrigerated carton contains 110 calories, 2.5 grams of fat, 6 grams of protein, 2 grams of fiber and 5 grams of sugar, none of which are added sugars. The product is also fortified with bone-building vitamins and minerals. 

I.P. One Co., Ltd., also known as Innovate Passionately, has two new shelf-stable milk beverages also designed for healthy aging. Details on these products will come Monday as a Daily Dose of Dairy. 

Formulating for healthy aging is a growing segment, and dairy has a prominent role in it, as protein, calcium and vitamin D are paramount to preserving lean muscle. Dairy proteins have been proven to reduce sarcopenia, which is aged-related loss of muscle mass and strength.

In case you missed this Daily Dose of Dairy earlier in the week, The Collective has a new range of functional yogurt pouches for on-the-go adults. The six varieties all contain live and active cultures. They also feature different functional ingredients to address specific health and wellness occasions. Each 130-gram pouch contains less than 100 calories.

Gut Feel is a vanilla-flavored, no-added-sugar kefir yogurt that contains billions of live cultures (14 strains) and is a source of fiber.

Immunity is cherry and acai Greek-style yogurt that is high in vitamins C and D.

Invigorate is passion fruit yogurt with and energy-boosting ginseng. It provides vitamin D and calcium.

Kickstart blends British oats and whole grains with blueberry and raspberry natural yogurt. It is high in vitamin D and a source of fiber.

Restore features apple and kiwi flavors along with spirulina, a source of additional protein. The yogurt is high in vitamin D and a source of calcium for muscle repair.

Uplift is a peach and raspberry Greek-style yoghurt. There’s also a dairy-free peach and vanilla version.

“Yogurt is the ideal snack, as it is inherently nutritious, healthy and tasty, but its traditional pot format means it is quite inconvenient to eat beyond the four walls of your home,” says Tor Hunt-Taylor, marketing director. “And with so many offerings lacking in flavor or full of artificial ingredients, yogurt often gets a bad reputation for being boring. It was time to bring something completely new to market and breathe fresh life into the category.”

Let’s jump back to school, specifically foodservice at colleges and universities across the country. Chartwells Higher Education, a recognized leader in contract food management, has once again identified the top-five food trends for the upcoming fall semester that are set to make waves in campus dining. The number-one trend: Cottage Cheese. 

“Cottage cheese is making a comeback as a versatile protein source, finding its way into a variety of dishes from breakfast bowls to queso dips,” according to Joe Labombarda, senior vice president of culinary. “Its high protein content and adaptability make it a go-to option for students looking to fuel their day. Chartwells’ test kitchen is experimenting with several related recipes to deploy on campuses this year, including a homemade high-protein ranch dip and hearty cottage cheese wraps.” 

Chef Sarah Bodner, research and development executive chef at Chartwells Higher Education,” adds, “Our latest survey of over 72,000 students shows protein and international flavors are among the top priorities for today’s college students. Foods like cottage cheese offer students a versatile, high-protein option that can easily be incorporated into different dishes throughout the day.” 

Dairy foods marketers need to up their game with cottage cheese, both in schools and retail. Germany’s Karwendel-Werke Huber GmbH & Co. KG, for example, markets Exquisa Cottage Cheese in convenient 200-gram containers. The key here is the that the company boldly labels the product as “High Protein.” 

The reality is that contrary to what is often reported in mainstream media, dairy is thriving in today’s market. As consumers become more health-conscious, they are rediscovering the nutritional benefits of dairy, such as high-quality protein, calcium and vitamins that support overall health. Here are three brands known for their innovation within the category. 

We may as well start with cottage cheese. Since acquiring the Breakstone’s brand—among other cheese brands—from Kraft Heinz, Lactalis Group has been busy with designers to update packaging. The contemporary twist on Breakstone’s cottage cheese emphasizes the brand’s rich heritage with an emphasis on modern ways of enjoying the cultured dairy food. 

Clio Snacks has been all about snacks since its inception in 2015 when the company introduced Americans to refrigerated, grab-and-go Greek yogurt bars dipped in chocolatey coating. The brand’s most recent innovation is Mini Greek Yogurt Bars Dipped in Yogurt in strawberry banana and mixed berry varieties. The bite-sized snack bars are made with whole milk Greek yogurt and real fruit. 

“This product reflects our commitment to providing great-tasting, better-for-you, grab-and-go snacks so consumers don’t have to compromise between taste, nutrition and convenience,” said John McGuckin, CEO of Clio Snacks.

Over the past two years, Clio has increased its grocery store presence in the U.DS. by 83%. Clio products are now available at more than 150 colleges and universities, with expectations to double before the end of 2024. Clio also has a strong presence across multiple airports and a new vending partnership due to the formation of an internal food service team. Expanding its footprint internationally, Clio has launched three products in more than 500 locations across Canada this year.

Clio resonates with consumers because of its better-for-you halo that includes the benefits of Greek yogurt, such as protein and probiotics, as well as the portability that makes it a convenient snack, according to the company’s founder Sergey Konchakovskiy. He created the product in an effort to get his children to eat more nourishing snacks. 

Maple Hill has redesigned its packaging, too. The 100% grass-fed, organic dairy brand is focusing on its 100% regenerative farming practices with its small family farms. The messaging is all about dairy that’s better for you, the cow, the land and the farmer.

The dairy category is experiencing a surge in innovation, with new and exciting products that cater to diverse tastes and dietary needs. Keeping the label clean and simple is an important strategy moving forward.