Innovations and NPD in Dairy: Emerging opportunities, flavor trends and new healthy, ethical and premium products

Date: January 22, 2010
Pages: 115
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Hard Copy Mail Delivery, CD-ROM Mail Delivery
ID: I113931FF9FEN

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Innovations and NPD in Dairy: Emerging opportunities, flavor trends and new healthy, ethical and premium products
There are three significant trends in dairy product innovation: emotional wellbeing, functional health and indulgence products. The importance of these drivers is set to increase as consumers demand more from dairy products.

Products which deliver mood management are coming onto the market. Manufacturers are using textural enhancements, functional botanicals and emotive language to position their product as beneficial to emotional wellbeing. The naturally occurring appetite suppressants in milk are being supplemented with other natural functional ingredients to enhance its weight managemtn potential. Dairy products are also being positioned as an aid to sport because of the naturally occurring nutrients which offer energy and muscle repair. Indulgence has also been to the fore as many consumers look to treat themselves to small affordable luxuries during the tough economic climate. A number of dairy manufacturers are incorporating a sense of indulgence into their products through indulgent ingredients, packaging and provenance.

Key features of this report

  • Analysis of sales values for dairy in North America, South & Central America, Western Europe, eastern Europe, the Middle East & Africa and Asia-Pacific.
  • Coverage of yogurt, milk, cheese, spreadable fats, cream, fromage frais and chilled desserts.
  • Country analysis showing the top opportunities for increased sales of dairy categories.
  • Draws on 13,612 dairy product launches that took place globally between 2006 and 2009.

  • Scope of this report

  • Understand each regional market in terms of absolute size as well as the future potential of each type of product.
  • Inform your sales team and/or export department by prioritising the geographical markets best suited to your current range of products.
  • Evaluate whether you should be looking beyond your current product portfolio for future opportunities.

  • Key Market Issues

  • Consumer demand for natural functionality is the overriding driver of the dairy product market.
  • Four issues are affecting innovation in dairy products – questions over product safety, the fat content of dairy products, water use and methane production in dairy, and allergies and intolerances .
  • Concerns have arisen over the possible effects of Bovine TB, and the use of human growth hormones on human health through dairy consumption.

  • Key findings from this report

  • The value of the global dairy products market is forecast to grow by 24% between 2008 and 2013 to be worth US$417bn.
  • Growth in the US market is expected to be almost double that of Europe, such that the US market will account for 14% of market revenue in 2013, being worth US$57.4bn. However European sales will continue to dominate the total market with a 38% share of sales by value in 2013.
  • The US and Japan are forecast to grow at above average rates and currently have below average per capita expenditure on dairy products.
  • Brazil will remain the largest emerging market reaching sales values of US$35 billion by 2013, followed by China and Russia.
  • At present milk and cheese dominate the dairy market , however yogurt is expected to overtake and will become a key opportunity for dairy manufacturers.

  • Key questions answered

  • What are the key innovations in dairy which will be significant in the next five years?
  • Which countries are the most dynamic in terms of dairy products?
  • What are the emerging markets in terms of dairy products?
  • Which are the most innovative sub categories within the dairy market?

  • Innovations and NPD in Dairy
    Executive summary 10
    Market drivers, inhibitors and issues 10
    Market dynamics and growth opportunities 11
    NPD and innovation in dairy products 12
    Conclusions 13


    Introduction 16
    What is this report about? 16
    Report structure 17


    Summary 20
    Introduction 21
    Market drivers 22
    Demand for natural products 22
    Adult obesity and diets 23
    Resurgent interest in home cooking 26
    Ageing population 27
    Kids 29
    Market resistors 30
    Doubts over product safety 30
    Environmental consumerism 35
    The amount of methane gas produced by cows 36
    Carbon footprint 37
    Packaging 37
    Production methods 38
    Transportation 38
    Rising costs and prices 39
    Price fixing 39
    Increased demand in China 40
    Other raw material costs 40
    Recession in the US 40
    Market issues 41
    Dairy allergies and intolerance 41
    Fat content 45
    Probiotic debate 49
    Articles 13, 13.5 and 14 49
    Problems with the implementation of the regulation 51
    Issues with health claims 53


    Summary 56
    Introduction and market trends 57
    The US dominates the dairy market 57
    Dairy in the BRIC countries 58
    Dairy market value analysis 59
    Country analysis 59
    Germany and France are the most valuable European markets 59
    Segment analysis 60


    Summary 62
    Introduction 63
    Growth of dairy products in terms of new product launches 63
    Category analysis 64
    Cheese 65
    Chilled desserts 66
    Cream 68
    Fromage frais 69
    Milk 70
    Spreadable fats 73
    Yogurt 74
    Regional analysis 76
    Europe 77
    North America 79
    Asia-Pacific 81
    Innovative dairy products 83
    Innovation in formulation 83
    Functional 83
    Provenance 89
    Innovation in packaging 91
    Green packaging 91
    On-the-go and convenience for kids 93
    Innovation by category 95
    Examples of key trends 96
    Product tags on dairy products 98
    Flavor trends 100


    Summary 104
    Drivers and resistors in the dairy products market 104
    Natural and ethical 107
    Functional health and wellbeing 108
    Further opportunities 110
    Index 114


    Figure 2.1: China milk product scare 35
    Figure 2.2: Ways to reduce the fat content and fat intake in dairy 48
    Figure 3.3: Value growth of dairy market, by country (%), per capita ($), 2008-2013 57
    Figure 3.4: Value growth of emerging dairy markets, by country (%), per capita ($), 2008-2013 58
    Figure 4.5: Growth of dairy products launched, by category (%), 2006-09 63
    Figure 4.6: Share of dairy products launched, by category (%), 2006-09 64
    Figure 4.7: Sainsbury’s cheese sticks, Landfrisch Sommergemuese, Raclette Cheese and Finlandia Black Label Goats Cheese 65
    Figure 4.8: Campina dessert, Fru Fruity Puds and Nantsuttei Baked Black Caramel Pudding 67
    Figure 4.9: Ruoka kerma cream, Junnama Cream, Kunin’s Smetana and Bailey’s whipped cream 69
    Figure 4.10: Plum baby fromage frais, Muller Little Stars and Yoplait Safari Tubs 70
    Figure 4.11: Nippon Milk Community milk, Dairy Delicious Milk, Latella Tirol Milch and Huerkang milk 72
    Figure 4.12: Epicurean Butter, Ayurvedic Ghee butter, Delamere Goat’s butter and Minus L butter 74
    Figure 4.13: Muller Corner Healthy Balance and Yoplait Light Thick and Creamy yogurts 75
    Figure 4.14: Share of dairy products launched, by region (%), 2006-09 76
    Figure 4.15: Share of products launched by category, Europe (%), 2009 77
    Figure 4.16: Edeka Mozzarella and Garcia Baquero Queso 78
    Figure 4.17: Share of products launched by category, North America (%), 2009 79
    Figure 4.18: Tillamook Shingle sliced cheese, Cabot Harpoon IPA Beer Cheddar Cheese and Meyenberg Aged Goats Milk Cheese 80
    Figure 4.19: Share of products launched by category, Asia Pacific (%), 2009 81
    Figure 4.20: Maeil fresh shoots and grain seed yogurt drink, Gloria Frutos del Peru and Yakult Honsha yogurt drink 82
    Figure 4.21: Next Generation Organic Probiotic Cheese, Acai Roots Smoothie, Benecol Fruit and Dairy Smoothie and Celta Antiox 85
    Figure 4.22: Borden Dairy 100 calorie Snack Cheese Sticks, Rightsize smoothie and Magermilch- Joghurt 86
    Figure 4.23: Kagome bacteria yogurt, Hempmilk and Nippon Luna Platinum Yogurt 88
    Figure 4.24: Yogi Yalla Yogurt Drink, Ice Break Milk and Boost Guarana 89
    Figure 4.25: Tou del Tillers Queso, Colby Kalamata Olive and Sundried Tomatoes and Noem Mix Naturrein 90
    Figure 4.26: Chobani Greek Yogurt 91
    Figure 4.27: Waitrose Select Farm and Sam’s Member’s Mark Milk 92
    Figure 4.28: Yoplait 360 Degrees Yogurt drink, Dannon Danimals Crush Yogurt and San Antonio Margarine 94
    Figure 4.29: Innovation in dairy product categories, 2006-2009 95
    Figure 4.30: Jalna Vitalize Yogurt, Dobroye Utro Bio Yogurt, Yoplait Mixed Seeds, Patak’s Original Raita Yogurt, Wallaby Organic Down Under 97
    Figure 4.31: Flora Buttery, Strawberry yogurt drink, Natural Start Vulgaris yogurt drink and Waitrose Strawberry and Rhubarb cheesecake 99
    Figure 4.32: Dairy products with innovative flavors 102
    Figure 5.33: Drivers and resistors in the dairy industry 105
    Figure 5.34: Growth opportunities in milk 110
    Figure 5.35: Growth opportunities in cheese 111
    Figure 5.36: Growth opportunities in yogurt 112


    Table 2.1: Value of the US & European natural (excluding organic) food and drink market, by category ($bn), 2000-2010 23
    Table 2.2: Overweight and obese adult consumers, by country (% of adult population), 2004- 2009 24
    Table 2.3: 60+ Mid Year Population, by continent (m), 2008-2012 27
    Table 2.4: Market value of the allergen and intolerance food market, by country ($m), 2001-2011 42
    Table 2.5: Market value for the allergen and intolerance drinks market, by country ($m), 2001- 2011 43
    Table 2.6: Low-density lipoprotein (LDL), or "bad," cholesterol levels. 47
    Table 3.7: Dairy market value, by country ($m), 2008-2013 60
    Table 3.8: Dairy market value, by segment ($bn), 2008 and 2013 60
    Table 4.9: % of types of innovation within innovative dairy products, 83
    Table 4.10: Top 15 claims on dairy products launched, 2006 to 2009 98
    Table 4.11: Top 15 flavors in dairy products launched, 2006-2009 100

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