Yogurts and Dairy Beverages Lead Protein NPD Boom

10 Sept 2015 --- Protein content has been one of the key areas of activity in new product development in the food and drinks industry over the past couple of years. Nearly 4% of global launches recorded by Innova Market Insights in the 12 months to the end of June 2015 used a high-in or source-of protein positioning, rising to nearly 8% in the dairy sector and 14% in the yogurt category. 

The US has led this rising interest in protein content, both overall and specifically in the dairy sector. Over 17% of US dairy launches were positioned on their protein content in the 12 months to the end of June 2015, which is well over twice the global average. Yogurt had the highest penetration, with over one-third of launches marketed on a protein platform, followed by milk drinks with just under a quarter.

While one-third of yogurt launches using a protein positioning is fairly impressive, it still trails behind US Greek and Greek-style launches, which accounted for nearly 57% of total introductions, indicating that by no means all Greek yogurts are using a high-protein positioning yet. 

In addition to Greek-style yogurts, other traditionally high-protein fermented dairy products are being introduced onto the market, led by the Icelandic fermented dairy product skyr. Skyr is also moving from its home in Iceland to a number of European markets. Perhaps not surprisingly this started in Scandinavia, but there were launches by Arla Foods in countries such as Germany, the UK and the Netherlands in the spring of 2015. 

In the milk drinks market, performance was initially a key focus for protein beverages, but we are now seeing both relatively specialist performance products and more mainstream lines. In the US, introductions have included an organic version of Cytosport’s market-leading Muscle Milk protein beverage, Morning Protein Smoothies from Sprout Foods, Plus Protein Dairy Beverages from retailer Safeway and TruMoo Protein Milks from Dean Foods.

In Europe, recent launches include Lactel’s Sporteus protein-enriched milk drinks in France, positioned as sports beverages; the leading US protein shake Muscle Milk Protein in Germany; and Austrian dairy company Nöm’s extension of its fasten flavored milk range with a fasten Protein Drink option. 

Yasemin Özdemir, of Innova Market Insights, told FoodIngredientsFirst that moving forward, there will be three main areas of growth: Seeking occasions, Permissible indulgence and Finding the Next Greek Yogurt.

“The trend for high protein dairy products has reached the mainstream and we can see high protein claims on all types of dairy products, from milk based drinks, to milk alternative drinks, to yogurts and dairy based desserts,” she says. “Currently, brands are focusing efforts on positioning high protein product according to a specific occasion. Arla Breaker is a yogurt product in a pouch, offering convenience. The product is portable, and can be consumed as an in-between healthy snack or a breakfast replacement. FrieslandCampina has launched a high protein drinking yogurt under its Vifit brand. It focuses on the main benefits of protein on muscle maintenance, targeting mainstream consumers.”

On indulgence, Özdemir says: “Greek yogurts was once a novel segment but is now a crowded shelf. In order to find new pathways for NPD, we see a lot of products focusing less on just the health aspect but more on indulgence. Flavors, inclusions and texture are used to create more indulgent formulations. Muller and Danone have both launched Greek yogurt type dairy desserts that are high in protein in the course of the past year. Nuts, honey, caramel, chocolate, figs and other exotic fruits have made their way into Greek yogurts to create more indulgent experiences for consumers.”

Since the success of Greek yogurt, dairy brands have been all looking into “What’s the next Greek yogurt”. Innova Market Insights has already predicted the rise of alternative ethnic yogurts such as Skyr and Quark. These products are now entering western markets at a fast pace, with Arla Skyr being rolled out in various countries at the moment.

As the market grows, it will also appeal to a more mainstream market, says Özdemir. She says this will be seen mostly in spoonable yogurt. “Drinking yogurt is a much smaller market still and is typical for certain countries and less in others. These products do offer the benefit of being convenient and portable, thus in to-go channels we might see more innovations in drinking yogurt formats. High protein milk drinks are not to be forgotten in this space as I expect this segment to grow, first and foremost in western regions. They serve mostly as healthy snacks, offering satiety in the morning or until lunch, as breakfast replacement drinks and as post-exercise drinks.”

High protein foods are one of the most sought-after nutritional choices of the moment,” according to Williams “and the dairy sector appears to be extremely well placed to benefit. Yogurts and milk drinks are the current leaders in terms of activity, but there may also be opportunities in other products such as cheese, particularly soft and fresh products.