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FMCG Gurus


Introduction

Despite the growing emphasis on changing dietary patterns, a
significant proportion of consumers continue to incorporate dairy products into
their diets. This particularly applies to those following a flexitarian
approach who show less reluctance to avoid dairy compared to meat. Furthermore,
consumers view dairy as a contributor to an overall balanced diet due to its
association with essential nutrients such as protein, calcium, and various
vitamins and minerals.

While the consumption of fresh milk has decreased over the past few decades, with many opting for alternative functional beverages, it remains a staple ingredient in hot drinks. Although the plant-based milk sector has seen substantial growth, it still remains behind the dairy market, with many consumers willing to switch between dairy and plant-based options based on the occasion. Additionally, dairy products, such as yogurt, are popular choices for snacking, with many individuals regarding them as a better-for-you, guilt-free alternative to items like chocolate and confectionery.

Dairy, Nutritional Labeling, Better For You, Food And Drink, FMCG, Fresh Ingredients, Consumer Insights, Market Research.

Consumers are Cutting Back on Non-Essentials

Overall, consumers say that their dairy consumption habits
have remained consistent over the past few years, emphasizing the significance
of dairy in their diets and indicating a reluctance to decrease consumption due
to health or financial considerations, particularly amidst rising prices.

The exception to this pattern can be seen through the
decline in consumption of ice cream. For instance, FMCG Gurus’ consumer
insights indicate that where nearly three in ten consumers express a desire to
reduce their intake, reflecting a trend of cutting back on indulgent and
perceived non-essential, less healthy products during times of financial
uncertainty, although the ability to do so may not fully align with attitudes.

While some consumers are increasing their consumption of soy and fresh milk in pursuit of healthier and more sustainable options, a notable portion has actively sought to reduce their intake, signaling more challenging conditions for the plant-based market compared to a few years ago. 

Dairy, Nutritional Labeling, Better For You, Food And Drink, FMCG, Fresh Ingredients, Consumer Insights, Market Research.

Consumers are Likely to Check Nutritional Labeling in ‘Better-For-You’ Product Categories

Consumers show an interest in nutritional information when choosing
dairy products, with ingredient integrity significantly influencing their
perceptions of value as they navigate through altering purchasing habits to
manage escalating prices while aiming to minimize sacrifices.

Notably, consumers are most inclined to check nutritional labels when purchasing fresh milk products. For example, FMCG Gurus’ market research reveals that 64% of consumers who purchase such products say they regularly check nutritional labeling in the fresh milk category. This underscores a widespread focus on nutritional content in categories perceived as healthier while showing less attention in categories linked to indulgence. Furthermore, within the milk category, consumers are inclined to check nutritional labels to assess product freshness, particularly for perishable items. This highlights the need for product information to be easily accessible and transparent, enabling consumers to make more informed decisions about a product’s nutritional profile within seconds.

Purity and Freshness Come Hand in Hand

Perceptions of quality, safety, and value within the dairy
industry are significantly influenced by freshness, reflecting consumers’ more attentive
approach to spending and their heightened scrutiny regarding the best value for
their money. Freshness is commonly associated with naturalness and products
free from additives, concepts that have witnessed a notable increase in
consumer recognition between 2021 and 2023. For instance, FMCG Gurus’ consumer
insights show that 71% of consumers felt that natural claims shaped perceptions
of whether a product is genuinely fresh in 2023. In comparison, only 43% of global
consumers felt this way in 2021.

This shift post-pandemic suggests a decreased emphasis on product story and origin, with consumers prioritizing health and purity over concerns about supply chains. It underscores a consumer preference for authentic ingredients that are perceived as beneficial for overall well-being and the environment. 

This article is based on FMCG Gurus: Reinvigoration of Dairy in 2024 – Global Report. For more information, please click here.

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