These Dairy Packaging Trends Are Here to Stay

In the current landscape, there has been a marked increase in the scrutiny that consumers place on their food. Interest in where food comes from, how sustainable it is, and whether or not it has been modified using chemicals, is at an all-time high.

Dairy has long been seen as an integral part of a healthy diet but that doesn’t mean it’s free from disruption. As consumer attitudes to food change, dairy producers must look for new and innovative ways to reach their target audiences and make a compelling case for buying dairy products.

These four trends have been identified as the primary driving force in the dairy market going forward.

Trend 1: Sustainability

Sustainability is one of the more pressing topics on consumers’ minds, and dairy consumers are no different. From the sourcing of the milk itself, to the recyclability of the packaging, expectations have shifted.

To help minimize climate change, 64% of Swedes said they will try to buy more sustainable food, and 27% of US consumers say environmental sustainability is a key driver for purchasing decisions ¹. And 32% of UK yogurt buyers claim that environmental concerns have caused them to cut back on yogurt over the last 12 months ².

By addressing consumer concerns regarding plastic waste and food waste, brands may attract consumers willing to pay more for sustainability and retain existing eco-conscious customers. For an example of this in practice, Unilever’s sustainable living brands have grown 50% faster than the business as a whole in recent times.

Similarly, consumers are keen to hear of companies giving back, or at least trying to improve their sustainability credentials. In 2019, 18% of Middle East and North Africa (MENA) consumers were worried about climate change. Almarai, the number one MENA dairy company, has focused on ethical sourcing, animal welfare, and reducing natural resource use and waste with energy and fuel efficiency. As a result, they have avoided over 2,682 tones of CO2 and aim to generate further significant economic value through continued innovation.

Therefore, reducing waste of dairy products not only requires initiatives on the production side, but also innovative solutions to help consumers decrease waste. One of those innovative solutions is packaging. Over 90% of our Die-Cut dairy range is recycling ready, which translates to a 63% reduction in C02 emissions and 79% reduction in water consumption.

But recyclability is not the only concern. According to the International Dairy Federation, one fifth of dairy products end up wasted. A crucial step on the path to sustainability is to analyse food waste and discover how best to prevent it – and this has an impact on packaging priorities. Extending shelf life is one of the dairy industry’s biggest challenges – specifically the soft cheese industry.

Today, the dairy industry isn’t limited to one option. With Matrix, soft cheese producers can control shelf life and optimize maturation. The shelf life of Grand Brie, for example, can be doubled from 45 to 90 days thanks to more breathable packaging. Matrix is designed with a no wet strength paper structure that greatly increases the recyclability of said dairy packaging. (Download our soft cheese whitepaper to learn more).

Consumers want to buy ethically – and dairy producers can reassure them by showing their credentials.

Trend 2: Healthy Eating

Healthy eating is another area that has seen a surge of interest in recent years. Consumer demand for more natural, less processed food has seen big pot plain yogurts in the UK increase 15% in value. In France, organic options, including organic yogurts and desserts have seen a 17.3% growth in volume and 20% growth in value ³.

Consumers are also recognizing the utilitarian benefits of certain foods and are increasingly looking to food as a way to help prevent disease or improve quality of life. This is evident in the recent attention to gut health, a trend that is likely to continue. According to Forbes, studies have even demonstrated that probiotic strain lactobacillus, commonly found in yogurt and other fermented foods, plays a role in regulating emotional behavior in animals.

According to a study released in March by Kerry, 65% of consumers seek functional benefits from their food and drink. The top five ingredients perceived to deliver these kinds of benefits were omega-3s, green tea, honey, coffee and probiotics.

Dairy has a key role to play in this sector, through products such as probiotic yogurts and cholesterol-lowering butters. Food companies such as Nestlé, Hormel Foods and Danone are also incorporating nutritional therapy into some of their products as this trend continues to gather momentum.

Trend 3: Snacking Occasions

Snacking has become a major trend over the last few years, and more people are opting to replace their meals with quick, convenient bites. Research from The Consumer Goods Forum suggests that 60% of people buy snacks as part of their weekly shop and 57% are replacing meals with snack foods.

However, consumers feel underserved by dairy snacks. In fact, 67% of Europeans believe that cheese is a healthy snacking choice for children, but 47% feel there should be more cheese snacks aimed at adults. These numbers were noticeably higher in Spain and Poland at 57% and 59%, respectively ⁴.

When it comes to snack packaging in general— and dairy packaging in particular—one size does not fit all. A full 27% of consumers say that portion control is “very important.” Portion control is critical for snacks like cheese because it keeps the product fresh and ensures the serving size is appropriate.

Consumers also prefer the ease of use of resealable packaging, as well as the convenience of not requiring a second container after the food is opened. But they also appreciate how the package is great for on-the-go consumption and is easily openable, meaning it can be thrown into a bag and consumed anywhere – from office desk to picnic in the park.

In fact, Amcor’s resealable packaging styles allow consumers to remove a single slice without touching the other slices inside, while the easy-to-open-and-reclose feature also promotes sharing. Amcor BePack™ with its easy open and reclose option helps retain superior flavour, freshness and quality in convenient formats.

This presents dairy producers with an opportunity to offer more portioned/nibbling options in the cheese category, to a market that is clamoring out for them.

Trend 4: Meat-free and plant-based diets

The last of the big four trends set to transform the dairy industry is the rise of meat-free diets. In an attempt to replace meat due to sustainability and animal welfare concerns, yogurt is increasingly seen as a viable alternative source of protein. In fact, 66% of European respondents believe this to be true and 58% feel similarly regarding cheese ⁵.

The statistic that shines the most light on this aspect of dairy is that 59% of respondents choose to eat cheese as an alternative to meat in a meal.

However, some 18% of consumers are trying to limit their intake of animal products altogether and follow a more plant-based diet. Today, the dairy aisle is crowded with alternative products, made from oat, almond, hemp and soy, and this is expected to accelerate in 2020 with better innovation in texture, nutrition and ingredients for plant-based alternatives.

Starbucks has recently added a few permanent drinks to its US menu featuring plant-based milk alternatives, and Nesquik have recently launched the vegan, oat-based Chocolate GoodNes.

Plant based alternatives contain fewer preservatives than conventional dairy product, which in turn limits its shelf life, this is why finding the right packaging is important.

As we enter a new decade, these trends represent some of the most seismic shifts in consumer attitudes in recent times. Sustainability, healthy eating, snacking, and meat-free diets are unlikely to be fads, as the global consciousness increasingly focusses on the wellbeing of the planet.

The market for products that meet these desires is there, consumers are just waiting for someone to provide for them.

Sources:
¹ 10 Key Trends in Food, Nutrition & Health 2020
² Mintel, 2018
³ LSA - Dairy trends
⁴ Mintel, 2018
⁵ Mintel, 2018