According to a report by Mintel, the food and beverage industry is experiencing several important trends that companies should pay attention to in 2024. These include Being Human, which focuses on elevating consumer experience through human creativity; More Than Money, which redefines the concept of value; Relationship Renaissance, which emphasizes the importance of interpersonal relationships; New Green Reality, which addresses climate change; and Positive Perspectives, which offers support and actionable information during uncertain times.
One key trend highlighted in the report is the growing consumer mistrust towards companies’ sustainability claims. Mintel reveals that 60% of US consumers believe that many companies are only pretending to be sustainable, while 52% of German shoppers do not trust companies to be honest about their environmental impact. The report suggests that brands need to communicate their eco-friendly practices in authentic and measurable ways to gain consumer trust, rather than relying on vague, catch-all sustainability terminology. For dairy companies, it is particularly important to challenge the attitudes of mistrust by actively involving farmers in the climate conversation. Consumers tend to trust farmers as reliable sources of information on environmental issues related to food and drink production.
Another trend highlighted in the report is the value of authenticity and heritage. Mintel suggests that dairy producers can enhance their brand and product value by emphasizing their market longevity and highlighting the functional properties or naturalness of their products. However, it is essential to cater to the preferences of different generations. For example, younger consumers may be less likely to pay more for a product based on its heritage or origin, but they are open to European-style cheeses made in Britain. To appeal to younger consumers, dairy brands should align their storytelling with the interests, values, and taste preferences of Generation Z.
The report also mentions the resilience of the dairy industry in the face of growing popularity in alternative dairy products. Although a significant portion of consumers in major European markets now use alternative dairy products, loyalty towards traditional dairy products remains strong. Many consumers worry about missing out on essential nutrients if they switch to alternative dairy. However, taste perceptions and price remain significant barriers to consumer adoption of alternative dairy.
In terms of opportunities for dairy brands, Mintel suggests that they should focus on re-designing solo routines, such as the morning coffee, to create a sense of community and connection for consumers. This could involve venturing into the active nutrition segment or the broader better-for-you food and beverage sector. Recent breakthroughs in product development, such as the creation of ambient probiotics-fortified yogurt, present opportunities for dairy brands to appeal to a wider range of active consumers.
In conclusion, the food and beverage industry is experiencing various trends that companies in the dairy sector should be aware of. By communicating authentic eco-friendly practices, involving farmers in sustainability conversations, appealing to different generations, and capitalizing on opportunities for innovation and community-building, dairy brands can navigate these trends and thrive in the market.
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