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FMCG Gurus: Reviving the Dairy Sector in 2024

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MeetMilk.ro

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Despite the increasing emphasis on changing dietary patterns, a significant proportion of consumers continue to incorporate dairy products into their diet.

Flexitarians, big fans of dairy

This applies especially to those following a flexitarian approach who show less reluctance to avoid dairy products compared to meat. Additionally, consumers view dairy as a factor contributing to a balanced overall diet, due to their association with essential nutrients such as proteins, calcium, and various vitamins and minerals.

While the consumption of fresh milk has declined in recent decades, with many opting for alternative functional beverages, it remains a staple ingredient in hot drinks.

Although the plant-based milk sector has experienced substantial growth, it still lags behind the dairy product market, with many consumers willing to switch between milk and plant-based options depending on the occasion.

Furthermore, dairy products such as yogurt are popular snack choices, with many considering them a better and guilt-free alternative to items like chocolate and confectionery.

Consumers reduce consumption of non-essential products

Overall, consumers say that their dairy consumption habits have remained constant in recent years, highlighting the importance of dairy in their diet and indicating a reluctance to reduce consumption due to health or financial reasons, especially against the backdrop of rising prices.

An exception to this pattern can be observed in the declining consumption of ice cream. For instance, FMCG Gurus consumer insights indicate that nearly three in ten consumers express a desire to reduce their consumption, reflecting a trend of reducing indulgent and perceived non-essential, less healthy products during periods of financial uncertainty, although the ability to do so may not fully align with attitudes.

While some consumers increase their consumption of soy and fresh milk in search of healthier and more sustainable options, a notable portion actively sought to reduce their intake, signaling tougher conditions for the plant-based market compared to a few years ago.

Consumers check nutritional labeling

Consumers show interest in nutritional information when choosing dairy products, with ingredient integrity significantly influencing their perception of value as they navigate changes in buying habits to manage rising prices while aiming to minimize sacrifices.

In particular, consumers are most likely to check nutritional labels when purchasing fresh dairy products. For example, FMCG Gurus market research shows that 64% of consumers who purchase such products regularly check nutritional labeling in the fresh milk category.

This underscores a widespread focus on nutritional content in categories perceived as healthier, while showing less attention in categories related to indulgence. Additionally, in the milk category, consumers are inclined to check nutritional labels to assess the freshness of the product, especially for perishable items.

The need for product information to be easily accessible and transparent allows consumers to make more informed decisions about the nutritional profile of a product within seconds.

Purity and freshness go hand in hand

Perceptions of quality, safety, and value in the dairy product industry are significantly influenced by freshness, reflecting consumers' more careful approach to spending and increased control over getting the best value for their money.

Freshness is commonly associated with naturalness and additive-free products, concepts that have seen notable increases in consumer recognition between 2021 and 2023.

For example, FMCG Gurus consumer insights show that 71% of consumers felt that natural claims shaped perceptions of a product being truly fresh in 2023. In comparison, only 43% of global consumers felt this way in 2021.

This post-pandemic shift suggests a decreased focus on product story and origin, with consumers prioritizing health and purity over supply chain concerns.

The report highlights consumers' preference for authentic ingredients perceived as beneficial for overall well-being and the environment. (Photo: Freepik)

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