Quality Over Price: Consumer Preferences Shape Dairy Market Trends
Source: The DairyNews
Recent global consumer research conducted by GlobalData for IFF, an ingredient supplier, has illuminated prevailing trends in the dairy sector. The study reveals that the majority of shoppers prioritize quality over price, even in the face of food inflation.
Moreover, emerging opportunities in dairy desserts, ice cream, label claims, and pack sizes are shaping consumer preferences and driving market dynamics.
The research, which surveyed 21,000 respondents across 42 countries, underscores the significance of functional and environmental benefits and verifiable label claims in purchasing decisions. Despite food inflation, consumers show a willingness to pay higher prices for dairy products to ensure quality. However, a notable proportion (35%) has opted for private label products to mitigate dairy spending, particularly in Europe.
Consumers seek "value with values," balancing affordability with quality, safety, ethics, and sustainability. Brands can appeal to budget-conscious consumers by integrating additional value through health, ethical, or sustainability benefits. Moreover, there is growing demand for functional dairy beverages and snack-sized dairy products offering greater nutritional value.
Innovations in ambient dairy products, along with adjustments in pack sizes, present opportunities for brands to cater to evolving consumer preferences. However, brands must tread carefully to avoid accusations of 'shrinkflation.' Indulgence remains a key driver in categories like dairy desserts and ice cream, with younger generations showing a penchant for novel flavors and experiences.
Transparency in label claims is paramount, as consumers prioritize responsible consumption and ethical practices. Despite media scrutiny, dairy alternatives face a crisis of consumer trust, leading shoppers to reassess health and sustainability claims.
As consumer preferences continue to evolve, dairy brands must align with changing demands, offering products that prioritize quality, value, and transparency while embracing innovation and sustainability.
The research, which surveyed 21,000 respondents across 42 countries, underscores the significance of functional and environmental benefits and verifiable label claims in purchasing decisions. Despite food inflation, consumers show a willingness to pay higher prices for dairy products to ensure quality. However, a notable proportion (35%) has opted for private label products to mitigate dairy spending, particularly in Europe.
Consumers seek "value with values," balancing affordability with quality, safety, ethics, and sustainability. Brands can appeal to budget-conscious consumers by integrating additional value through health, ethical, or sustainability benefits. Moreover, there is growing demand for functional dairy beverages and snack-sized dairy products offering greater nutritional value.
Innovations in ambient dairy products, along with adjustments in pack sizes, present opportunities for brands to cater to evolving consumer preferences. However, brands must tread carefully to avoid accusations of 'shrinkflation.' Indulgence remains a key driver in categories like dairy desserts and ice cream, with younger generations showing a penchant for novel flavors and experiences.
Transparency in label claims is paramount, as consumers prioritize responsible consumption and ethical practices. Despite media scrutiny, dairy alternatives face a crisis of consumer trust, leading shoppers to reassess health and sustainability claims.
As consumer preferences continue to evolve, dairy brands must align with changing demands, offering products that prioritize quality, value, and transparency while embracing innovation and sustainability.
