Market Trends
Introduction
In 2023, the Dairy Desserts market will be undergoing a significant transformation, which is driven by a combination of technological developments, changes in regulatory landscape and changes in consumer preferences. In the area of production and sourcing, the quality and variety of products are improving, while regulatory pressures are promoting greater transparency and sustainability in the supply chain. Meanwhile, consumers are increasingly seeking organic, indulgent and healthy desserts, in line with a broader trend towards a bespoke approach to nutrition and health. The resulting trends have strategic importance for market participants as they seek to respond to the changing demands of consumers and to harness the power of new technology.
Top Trends
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Health-Conscious Formulations
The dairy industry is responding to the rising awareness of the importance of a healthy lifestyle, by reformulating their products to reduce the sugar and fat content. For example, Danone has launched a range of low-sugar yogurts in response to demand from consumers. According to a survey conducted by the industry, 60% of consumers prefer desserts that are low in sugar. This trend is pushing companies to innovate, and could lead to a greater choice of dairy desserts in the future. -
Plant-Based Alternatives
Plant-based diets have also influenced the dairy desserts. Unilever has launched coconut and almond ice creams. A survey shows that 39% of consumers are looking for plant-based products. Dairy companies have therefore had to diversify their product range. This will probably lead to an increase in competition and innovation in the dairy alternative market, influencing the expectations of consumers and the market. -
Sustainability Initiatives
Organic Valley is a company that focuses on organic and sustainable practices. Recent research shows that 70 percent of consumers prefer brands that practice sustainable business. This trend is putting pressure on ice cream manufacturers to adopt a more sustainable production method, which could lead to a greater brand loyalty and attract consumers who care about the environment. -
Functional Ingredients
In dairy desserts, the trend is towards the addition of superfoods and probiotics. Stonyfield Farms, for example, is already adding probiotics to its yogurts. 45% of consumers are interested in food with added benefits. In view of this, companies are looking for new combinations of ingredients that could have both a health and a marketing value. -
Premiumization of Products
The price of dairy products is increasing, and consumers are increasingly willing to pay for premium dairy products. This is reflected in the growth of the gourmet industry. The ice cream sector is flourishing, with companies like General Mills launching artisanal ice creams with unusual flavours. According to a study, 55% of consumers are looking for products with a high added value. Brands are therefore investing in premium ingredients and original packaging to differentiate themselves from the competition. -
Personalization and Customization
Brands are now offering a range of personalization services to cater to individual tastes. Some companies, for example, allow consumers to choose the ingredients that go into their yogurt. Surveys show that fifty per cent of consumers prefer to buy products that suit their tastes, which has led many brands to adopt flexible production methods, which enhance customer engagement and satisfaction. -
Global Flavor Trends
Dairy desserts have become increasingly diverse, reflecting the growing interest in culinary experiences. Brands like Fonterra have introduced exotic flavours inspired by the cuisines of the world. Research shows that three-quarters of consumers are willing to try new flavours, which could lead to a wider acceptance of new products and greater opportunities for innovation. -
Convenience Packaging
The dairy desserts market is driven by convenience. Brands are increasingly offering single-serve or on-the-go packs. Kraft Heinz, for example, has launched on-the-go desserts to cater to the busy lifestyles of consumers. According to research, 72% of consumers prefer easy-to-use packaging. This has forced manufacturers to rethink their designs to enhance convenience and attract time-poor consumers. -
Digital Engagement and E-commerce
The trend to buy online is influencing the way dairy desserts are marketed and sold, and the way they are portrayed on the Internet. Companies like Lactalis are investing in e-commerce platforms to get closer to consumers. Statistics show that the number of consumers buying food on the Internet has increased by 30 per cent in the past two years, which is driving manufacturers to develop digital strategies that could challenge the way they do business in the real world. -
Ethical Sourcing and Transparency
It is the consumers who demand that the supplying firms disclose their sources and methods of production. The companies are obliged to adopt ethical sourcing policies. Friesland Campina, for example, is promoting its commitment to sustainable dairy farming. According to a survey, 68% of consumers are prepared to buy more from brands that make their sourcing information available. So companies are being driven to make their supply chains more transparent and build up trust.
Conclusion: Navigating the Dairy Desserts Landscape
The dairy desserts market in 2023 will be characterized by a strong competitiveness and significant fragmentation, with both the old and new players vying for the attention of consumers. The region's consumers will prefer more and more healthy and original flavors, and the producers will adapt their products accordingly. The established players will use their existing market positions and invest in the development of sustainable production, while the newcomers will rely on the speed of their business and the creation of niches to win the hearts of consumers. Artificial intelligence, automation of production processes, and a focus on sustainable development will be key to gaining a leadership position in the changing market. Strategically, the producers will have to move towards a more flexible and responsive organization, in order to remain competitive in this changing environment.
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