Trends driving the dairy sector

Animal welfare and sustainability are 2 key driving forces which are shaping the dairy sector.

• Animal welfare and the need for dairy producers to demonstrate their ethical credentials and give consumers assurance that they are upholding standards. Brands are communicating with explicit on pack statements on through the use of social media. The value that many consumers place on ethical treatment of animals suggests good opportunities for dairy products with a strong animal welfare positioning.

• Mintel May 2019 42% of UK milk/cream/milk drinks users/buyers say that animal welfare considerations influence their buying choices

• Emphasis on sustainability. Food producers and farms are committing to sustainability initiatives e.g. Origin Green in Ireland (Carbery a member of) to make improvements in areas including animal welfare and environmental impact. Areas of focus include than previously on six key areas: health and welfare, people development, environment and natural resources, community engagement, economic resilience and reinvestment

Competition from dairy free alternatives is a further trend which influencing the dairy sector, particularly the US market and beginning to have greater influence in Europe is the:

• 56% of US consumers who drink less dairy milk are drinking more dairy milk alternatives

• The dairy sector is now placing a strong focus on more premium offerings to attract more consumers back to the category. Easy to digest milk is one strong area of activity offering lactose free dairy milk. Another area of activity is protein and vitamin enrichment for milk and yoghurt drinks.

Health and wellness. Innovating to offer products which meet consumer needs for a healthier lifestyle continues to drive innovation. Products featuring added health benefits such as high protein, functionality, nutritionals and digestability are attracting consumers back to the market. The experiential need of consumers for indulgence and flavour creativity remains a constant across categories and dairy is no different.

• Tap into demand for gut-health innovation

The growing evidence linking gut health to a variety of health benefits offers new areas of opportunity for dairy to promote probiotics and other functional gut-health ingredients. Fermented dairy drinks are especially well-positioned to tap into this trend.

• Offerings which delivery improved digestability for consumers e.g. lactose free

Consumers claiming to find dairy products difficult to digest have been actively switching to plant based alternatives. Dairy producers including as Arla and Glanbia have focused innovations around lactose-free milk. 

• Added functional claims e.g. protein milk, fibre enriched

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What are some of the latest innovations/products that illustrate how the company is tapping into health and sustainability trends?

According to Mintel, 70% of consumers feel that manufacturers have a duty to make unhealthy foods healthier. However nutritional improvement is not without its challenges as 80% of consumers would also agree that taste is the most important factor when choosing a product. Synergy has been actively innovating in this space to help our customers manage this dilemma, building back indulgence lost and managing flavour imbalance in recipes to deliver a healthier offering.

Our range includes exciting innovations that deliver all the indulgence consumers expect but with fewer calories and a significant reduction in fat.

TasteBalance is a new pioneering ingredient from Synergy that has been specifically designed to provide functionality and flavour within reduced fat bakery products.

TasteBalance seamlessly replaces fat in bakery products, making reformulation simple for manufacturers with nutritional improvement targets. With all-natural ingredients and minimal effect on indulgence, TasteBalance is the perfect all-in-one ingredient for increasingly demanding consumers. A unique solution that combines flavour technology, functionality and mouthfeel all-in-one. No need for additional ingredients! 

Example: a reduced fat muffin; 40% fat reduction, 32% sat. fat reduction, 16% calorie reduction whilst maintaining indulgence, sweetness and creamy mouthfeel. (sensory graph available)

Synergy’s new dairy flavour solutions are another great example of an innovation tapping into both health and sustainability trends. Suitable for cross category application we help customers rebuild the indulgent, lingering creaminess of full fat dairy, intensify sweetness and mask undesirable off-notes in fat reduced and sugar reduced recipes. Successful projects include;(sensory graphs available)

• 30% sugar reduction and 25% fat reduction in cookies

• 30% fat reduction in ice-cream and sauces 

• 20% calorie reduction in savoury and sweet pastries and morning good 

• Improved body, mouthfeel and richness in toppings and fillings

How? 

With unmatched, high performing solutions from our own state of the art dairy centre. Our truly authentic dairy flavours are made with milk from grass fed cows. In West Cork, Ireland, our cows consume a predominately grass based diet throughout their lifetime. Our outdoor grazing, an extensive grass-based farming system provides us with the perfect environment for sustainable dairy farming. (Ireland has the lowest carbon footprint for milk in the EU 27 and at our parent company, Carbery we work closely with our farmer suppliers, through our network of milk advisors and farm sustainability officers, which means our farmers are committed to a cycle of measurement, feedback and continuous improvement).

Unlike typical dairy flavours that add a singular topnote, such as caramelised butter or condensed milk, our dairy layered solutions help mask undesirable off-notes and provide a long, satisfying time-release delivery of flavour. Whether it is creating the same sensory performance as real butter in pastry, imparting improved creaminess in a reduced fat dairy dessert or building back indulgence in calorie reduced biscuits and cake, Synergy dairy flavour solutions offer superior longevity of flavour, mouthfeel and aroma.

What are the challenges for companies who are innovating in the dairy-free beverage segment?  And how do your company help your customers to overcome them?

The popularity of plant-based diets has surged over recent years. The two macro-trends ‘protein’ and ‘plants’ have driven demand for plant proteins. There are many types of plant protein available, with soy and wheat being the most common. Synergy’s combined protein and flavour expertise allows us tailor flavours that complement our customers vegan protein of choice.

Consumers are increasingly selective about which types of food from plant origin they avoid. Replacing dairy ingredients with soy ingredients isn't always the answer. (Mintel: Just as many UK consumers avoid soy as dairy.) Other types of plant protein such as pea, rice and hemp are emerging in dairy-free beverage segment. Each plant protein comes with its own challenge in terms of flavour palatability for the consumer. 

Understanding the volatile off-flavours is crucial to delivering a superior dairy-free beverage. Synergy is involved in ongoing research to understand the off notes of vegan proteins. Using specialised in-house analytical and sensory techniques the flavour of vegan proteins (including pea, brown rice, hemp, soy) has been mapped and explained. Using the theory of flavour pairing, complementary flavours which work with key odorants in the base have been identified helping customers minimise negative flavour attributes of the protein base and enhance the positive attributes to create satisfying, enjoyable tasting beverages.

It is worth noting that the flavour profile of vegan proteins varies considerably, as with any natural product, depending on growing conditions and storage, and in any vegan blend the exact ratio of each protein can influence the final flavour of the product. Synergy’s flavourists and applications team work collaboratively with our customers on their base, to develop bespoke complementary flavour profiles.

To learn more, follow this link to our Dairy by Nature product page