From shifting focus to value-added products to greater focus on transparency and traceability to building consumer’s trust and brand loyalty, the dairy sector in Asia-Pacific (APAC) has undergone a significant transformation over the past decade and it continues to evolve. As we are half way through 2019, new dairy trends lie further to embrace.

Puneet Dubey, Consumer Director at GlobalData, a leading data and analytics company, highlights major innovation trends that are going to impact the production, marketing and sales of dairy products in 2019.

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Rise of plant-based dairy products

With APAC consumers turning to veganism and being receptive to new plant-based dairy product launches, brands are looking to capitalize on the trend. For instance, Heritage Snacks & Food Co., Ltd. launched new Pistachio Milk in Lactose Free option under the Sunkist brand in Thailand in May 2019. According to GlobalData 2018 Q4 Consumer Survey, 32% of APAC consumers are often influenced by how ethical, environmentally-friendly and socially-responsible the product is while purchasing. Therefore, plant-based ingredients are taking center stage as consumers, often fueled by health, environmental and ethical concerns, seek out feel-good consumption choices in everyday life. For instance, Heritage Snacks & Food Co., Ltd. launched new Pistachio Milk in Lactose Free option under the Sunkist brand in Thailand in May 2019.

Fascinating flavors

GlobalData’s 2018 Q4 Consumer Survey reveals that 24% of APAC consumers often like to experiment with new dairy products. This has opened up opportunities for brands to explore more fascinating dairy flavors and retool their product portfolios with unusual, experiential twists to make them more appealing. For instance, China-based Mengniu Dairy Co. recently launched a Fengweisuannai (Flavored Yogurt) in a Red Grapefruit Flavor, which is quite unusual for the category.

Personalization

In search of efficacy and individualism, consumers are striving for more personalized solutions in food. ‘Buying smart’ is one of the concepts underlying this trend, as lifestyles evolve to become less routine and more on-the-go products that can deliver multiple benefits or save time and money are likely to have high appeal. GlobalData’s 2018 Q4 Consumer Survey reveals that 29% of APAC consumers always keep personalization at the forefront while making a product purchase. Against this backdrop, dairy manufacturers are launching products tailored to consumers’ needs which includes health and dietary requirements, pack-size preferences, and product claims such as ‘free from’, ‘less sugar’ and ‘added nutrients’. Kellogg’s, for example, targeted time-pressed consumers in New Zealand with the launch of Nutri-Grain To Go Protein Squeezer in a convenient on-the-go breakfast format in May 2018.