Fonterra Talks Dairy Trends

19 Oct 2016 --- Multinational dairy company Fonterra is analyzing food trends to ensure its manufacturing, supply chain and dairy expertise appeals to contemporary consumers. CEO Jacqueline Chow talks about global consumer trends driving international dairy consumption and how Fonterra has invested more than US$1 billion over the last decade to deliver an age-old food in the most modern formats.

She says that even though dairy has been around for thousands of years, it’s a food that is totally on trend with what consumers want today and the cooperative’s farmers’ “high quality milk is nature’s answer to the latest consumer food trends.” Fonterra’s consumer and foodservice business has grown by US$1.5 billion from 2012 to 2016.

These trends include:

- Natural authentic whole foods: Consumers want food to be naturally authentic and as close as possible to its natural state with less processing, less additives and less intervention overall. Fonterra says people are looking for real butter, real cream and real milk and expects to see more consumers wanting full fat and reduced fat rather than no-fat dairy products.

- Health credentials are a big drivers of brand and product choice around the world and increasingly people want to eat foods that enhance health, well-being and perform a function in their diet. 

“They are looking for customized solutions, active ingredients that will improve gut-health, digestion, fortify bones, boost immunity, or provide other vitamins and minerals particularly relevant to their stage of life, from pregnancy, to infant and child nutrition, to healthy aging,” says Chow (pictured). 

- Sustainable diets are important as people are choosing food with less of an impact on the environment and the communities that produce them. Food that is ethically sourced, sustainable and from renewable energy sources is important and consumers want to know manufacturers have a record of high moral, ethical and socially responsible behavior. 

- Transparency helps consumers understand where natural food comes from and brings trust and confidence. Consumers are becoming more and more interested in eggs, dairy and meat that are grass-fed with provenance an important factor as well as exactly how the food was produced. 

- Protein push is not just for athletes as consumers want high quality protein in food and beverages. “We can expect to see more scientific research showing the benefits of increased protein intake for adults, moving protein supplements away from the preserve of the gym-set and more into the “everyday”. 

- Sugar remains in the spotlight with a less is more mentality spreading across consumers globally, especially in younger people. People want foods that will help reduce their sugar intake as it’s widely understood that less sugar is key to weight management and managing and preventing a whole host of health issues.

- Fonterra expects consumer will be looking for more healthy foods packed in convenient single serve formats as the trend for healthy snacking gathers pace and dairy will be on-the-go. “People are looking for “grab and go” foods that are healthy and conveniently packaged. This is true of working adults, single person households and for children’s nutrition. Whether it’s a quick dinner on the way home from work or something to throw in a child’s lunch box, people are looking for easy ways to incorporate more tasty and healthy options into their diet.” 

- People are inspired by gourmet convenience and want ingredients to help them cook like a Masterchef at home with a few helpful shortcuts along the way. 

- Permissible indulgences: Health conscious consumers still want to enjoy some pleasure so to help justify an indulgence they are for looking indulgences that boast more wholesome or natural ingredients. 

- Digital revolution has completely transformed the way we interact with food. The smartphone is an indispensable tool for searching, eating and dining with people sharing images of their recipes, home-made dishes or taking a picture at restaurants. Eating is much more social, interactive and authentic than ever. “People will become increasingly interested in the look of food and what their food says about them; they will be influenced by what their peers are eating; and new food trends will be borne out of social media.”

- Dairy premiumization is the desire for high-end dairy products that comes as a person’s income and standards improve. Milk is at the core of added-value tasty and healthy beverages or food launched with packaging innovation for gifting or for specific channels like e-commerce.  

“We will keep investing in dairy science, sustainability, nutrition and packaging innovation to make sure we are creating high value dairy products to meet the most contemporary consumer demands.  Dairy is an age-old industry that is totally ready to meet consumer food needs now and well into the future,” adds Chow.