From the price-quality ratio to building relationships with consumers and communicating climate actions more authentically, the market intelligence agency Mintel, cited by FoodNavigator, highlights five consumer trends that will be important for brands next year and beyond.

Five Trends

• Being Human – that is, finding ways to enhance the consumer experience through human creativity, in contrast to technology;
• More than Money – redefining what constitutes value;
• Rebirth of Relationships – capitalizing on interpersonal relationships;
• The New Green Reality – addressing the climate threat; and
• Positive Perspectives – providing consumers with support and useful information in times of uncertainty.

Among the top five trends, there are several critical factors – from consumer disillusionment with ecological claims to opportunities for relationship building and branding – that dairy companies should monitor in 2024.

Farmers are "Trusted Sources"

In times when environmental sustainability is on everyone's lips, consumer distrust is growing. According to Mintel, 60% of American consumers agree that many companies "pretend" to be sustainable, while 52% of German shoppers do not trust companies to be honest about their environmental impact.

The market information agency suggests that to reach consumers, brands must communicate their ecological practices authentically and in measurable forms, rather than generic, net-zero terminology.

In the dairy industry – where quantifying Scope 3 emissions from the supply chain is still a challenge for many companies, despite their appetite to achieve "net zero" (which involves addressing Scope 3 emissions) – distrustful attitudes should be actively challenged.

According to David Faulkner, Mintel's Food & Drink Director, dairy brands can benefit from involving farmers in the climate conversation. "Although for many food and drink consumers worldwide, the importance of sustainability as a main purchase motivator has been deprioritized because of the rising cost of living, they recognize the importance of sustainable buying," he said.

"Consumers expect food companies to be more transparent about sustainability, including their farming practices. At the same time, consumers can be skeptical about brand priorities and ethical stance.

"When it comes to understanding environmental issues, consumers trust farmers. Therefore, brands should allow trusted consultants like farmers to share details about their expertise related to animal grazing and soil health."

He added that in Canada, 37% of consumers consider farmers to be trusted sources of information to understand the environmental impact of food and drink. "In comparison, 19% of consumers consider well-known food brands as trusted information sources," he explained.

However, in the USA, there's a significant minority who would still choose a familiar product over a "green" one – according to the report, 34% of American consumers say they choose food or drinks based on familiarity, rather than sustainable claims.

But could relying on familiarity impede innovation in the dairy aisle? "Familiarity is a strength that gives traditional brands the permission to innovate," Faulkner explained. "Because a brand is trusted, there's an opportunity for it to offer new variants and innovations. A good example is how BabyBel introduced plant-based variants. Trust and heritage can be seen as a springboard to innovation, not a hindrance."

Appetite for Authenticity

Traditions and heritage can also help dairy producers enhance brand and product value – either by emphasizing the company's market longevity or by highlighting a product's functional properties or naturalness.

According to Mintel, brand values will also increase as consumers assign personal significance to these brands – such that promoting an emotional connection "will lead to lasting long-term contact," the agency suggests.

But different generations value heritage differently. Giving an example from the UK, Faulkner said:

"Compared to Baby Boomers, younger cheese buyers are less likely to pay more for a cheese that is produced in the UK or comes from a known area (e.g., Parmigiano-Reggiano, West Country Cheddar).

However, younger cheese consumers are also more open to British-style European cheeses, e.g., British-style mozzarella, Somerset Brie.

"Only 11% of Generation Z cheese buyers would be encouraged to pay more for a cheese that offers benefits such as a traditional recipe."

To attract younger consumers, cheese brands need to align their story with Generation Z's interests, values, and taste preferences, he pointed out. "Strong branding and communication about farmers' welfare are more likely to motivate young British cheese buyers," Faulkner said.

Dairy Holds its Ground Amid Growing Market for Alternatives

Mintel notes that as meat alternatives were designed to replicate the real thing, consumers "will want to stick to their habits and routines with greener products" – but, as seen with alternative meats, consumer demand is not enough.

"The alternative meat market has been affected by taste, accessibility, and health attribute issues," Faulkner told us. "In response to economic uncertainty, consumers have reverted to familiar, less expensive meat products. Key consumers, such as flexitarians, perceive alternative meats as being too processed."

Regarding dairy alternatives, between a third and half of the shoppers on major European markets now use dairy alternatives – but usage is declining, according to Faulkner. "Loyalty to dairy products remains strong: most consumers say they would never completely give up dairy consumption.

"They worry that their children will miss out on essential nutrients."

However, European consumers have remained loyal to dairy alternatives, despite economic pressures, he added. "Only a minority bought fewer plant-based dairy products or reverted to dairy."

Taste perceptions and price remain the largest barriers to consumer adoption of dairy alternatives among consumers, though for one in five, there are no specific reasons they have avoided these products so far.

Two factors might be at play here, according to Faulkner. "Dairy alternatives aren't necessarily on the radar of non-users," he said. "Shoppers might also be overwhelmed by the amount of choice now available. 34% of milk users say the wide range of plant-based milk available makes it hard to choose one to try."

Reimagining the Solo Routine – Opportunities in Active Nutrition?

Mintel further says that brands need to be more active in "redesigning solo routines" – e.g., the morning coffee – as something consumers don't have to do alone now that many seek to form new relationships and engage with their communities post-pandemic.

For dairy brands, opportunities from this might lie in the active nutrition segment or the broader better-for-you food and drink sector. With recent NPD findings, such as the one by SIG and AnaBio Technologies, who formulated and packaged the first ambient probiotic-fortified yogurt, there might be more opportunities to attract wider groups of active consumers outside their solo routines.

Mintel's report on global trends is now available directly from the market intelligence company's website.