Tirlán on APAC growth, functional dairy opportunities, and the appeal of 'grass-fed'
DairyReporter: You were part of a trade mission organized by the The Irish Food Board (Bord Bia) to Malaysia and the Philippines in 2023. What opportunities exist for Tirlán Ingredients in the region? How are you currently tapping into the APAC market through your ingredients business?
Ann Meaney: With milk production set to grow only moderately in Southeast Asia and demand forecast to grow driven by population and income growth, this region will be a key opportunity for dairy exporters. This ministerial-led trade mission included a full programme of events including two dairy technical seminars in Kuala Lumpur and Manila, where local dairy importers had the opportunity to learn about Irish dairy from a range of expert speakers, and also to network and explore business development opportunities with Irish processors. Tirlán Ingredients has had a footprint across the APAC region for many years and we have recently strengthened our position in this region by growing our presence on the ground, with local teams now in place with bases in Shanghai and Tokyo. This local market knowledge and expertise is key to our growth ambitions.
DR: What opportunities across food and affordable nutrition are you looking to explore in the region in the coming years?
AM: Dairy consumption is growing in this region, and in particular, we see a lot of growth in cheese consumption and new applications for dairy powders.
"Consumers are looking for more better-for-you snacks and seeking products that can support their health and lifestyle goals. Active Lifestyle consumers and Healthy Aging consumers are driving more demand for everyday products that have functional benefits which support their nutritional needs." - Ann Meaney, Tirlán
DR: What is the demand like for grass-fed dairy ingredients in the markets you operate in? How well is the 'grass-fed' label recognized and appreciated by consumers in 2023?
AM: The grass-fed label has strong recognition in the US and a growing recognition in Asia and Europe. The pasture-based farming system we operate in Ireland is a key USP in our markets. We see a growing demand for our Truly Grass Fed proteins as brands seek to meet the consumer demand for sustainability. The awareness and premium positioning of grass-fed beef is a good foundation for growing the awareness of the benefits of grass-fed dairy.
DR: Falling birth rates in China have prompted several manufacturers to pivot their dairy-based nutrition ingredients into other nutrition segments, or reduce their powder production output. How do the market dynamics in the infant formula market affect your dairy powder business? What demand trends have you experienced from other food and nutrition segments for your dairy powders in the past year, and what are your expectations on that front for 2024?
AM: We see increasing opportunities in other nutritional categories, outside of infant nutrition. Consumers are looking for more better-for-you snacks and seeking products that can support their health and lifestyle goals. Active Lifestyle consumers and Healthy Aging consumers are driving more demand for everyday products that have functional benefits which support their nutritional needs. This demand has driven a demand for higher protein products. We have seen this demand manifest in a higher demand for our protein ingredients. Promiko, our WPI for the sports and active nutrition market, Solmiko for clinical nutrition and RTD beverages and Solago for functional foods such as high protein yogurts, bakery products, and ice cream. We expect this trend to continue in 2024 but we see that consumers will increasingly be placing value on sustainability and transparency and will be expecting the brands they choose to align behind these values.
DR: High-protein dairy is emerging as a sustainable market trend, but how can manufacturers stand out through ingredient innovation in their functional dairy offerings? What health and nutritional benefits are health-conscious and active consumers looking for in a dairy product as we go into 2024?
AM: As mentioned above, consumers will place much more value on sustainability and manufacturers can stand out by providing protein ingredients with excellent sustainability credentials. A grass-based farming system, where cows graze outdoors for most of the year, is recognised as delivering more sustainable farming. The benefits derived from grass-based farming are both environmental and nutritional. Grass-based farming is proven to demonstrate reduced energy consumption when compared with indoor feeding systems, and research indicates Irish milk produces the lowest levels of CO2 emissions in the EU.
DR: What's the state of play with oat-based dairy alternative products – have we reached ‘peak oat’ in terms of flavor innovation, functionality? What room for innovation is there for dairy alternatives or hybrid dairy food producers who are looking at oat-based solutions?
AM: Oats is a key focus for us and we continue to see strong growth in this category. We have a strong pipeline of new innovations in oat ingredients and expect to continue to grow in this space in the coming years. There is a rising demand for plant-based and hybrid formulations in active lifestyle nutrition. Consumers are continuing to adopt a flexitarian diet to protect the planet and also gain health benefits associated with a plant-based diet. Hybrid dairy/plant products can address health and environmental needs while also delivering on the functional and taste benefits that are important to consumers.
