Dairy: A New Era of Innovation

Although most countries produce milk products, the structure of the dairy industry differs across the globe. Many major dairy-producing countries consume most of their output internally, while others (for example New Zealand) export a large percentage of their production. Local consumption is often in the form of liquid milk, while the bulk of international trade is in processed dairy products such as milk powder.

- Lorraine Kelly

The dairy industry is constantly evolving. To meet changing consumer desires, dairy companies are developing products with novel ingredients and flavors to maintain interest and offer new experiences. There is also a clear movement in some countries towards dairy-free alternatives, particularly plant-based products. ‘Flexitarians’ – those who follow a mostly vegetarian diet with some consumption of animal products – are a key driver of the plant-based trend and represent a significant opportunity for the food industry. Substantial investments in research and development (R&D) for novel dairy alternative products are also driving growth of this market, and consumers are coming to expect improved dairy- like textures and flavors.

In this article, we discuss the changing dairy and dairy-free markets, particularly focusing on the regions leading the way in plant-based innovation, such as the US, and where the dairy market is growing, namely developing regions including South America, the Middle East and Africa, and Asia.

GLOBAL DAIRY TRENDS