With demand for convenient and nutrient-dense snacks rising, dairy is well-positioned to capitalize on growth in the healthy snacking segment.
The global category is valued at north of $108bn and set to nearly double to $195 billion by 2035 (Source: Precedence Research). In the US alone, the dairy snacks and beverage category generated $5bn in sales (Source: SPINS) and is predicted to grow at a CAGR of 9.3%.
This is fueled by rising demand for natural, high-protein foods that provide satiety while supporting holistic health goals, including weight management and strength and muscle development.
#1: Protein
Dairy is a compelling choice for consumers looking to increase their protein intake thanks to being a source of complete proteins (containing all nine essential amino acids).
Categories that offer concentrated protein content – such as skyr and strained yogurt – have experienced significant growth in recent years, supported by emerging trends such as weight management in addition to holistic wellness.
Cottage cheese has also continued to stir the market of healthy snacks after emerging as an unlikely TikTok sensation.
High-protein cheese formats from slices to dehydrated cheese bites and bars have also continued to emerge as brands seek to tap into demand from on-the-go consumers or add value to traditional staples.
#2: Fermented dairy goes mainstream
Building on yogurt’s strengths in protein and satiety, fermented dairy products such as kefir have seen strong demand from consumers in the past year.
Functional beverages are the fastest-growing segment within gut health, making the dairy sector within ripe for expansion.
Probiotic beverages are becoming increasingly sought-after as gut health remains one of the top health objectives for consumers, second only to energy (Source: SPINS).
And with weight management continuing to dominate headlines, dairy majors such as Danone and Lactalis have put a fresh spin on cultured dairy by releasing formulations that cater to the healthy needs of this growing consumer cohort through fortification with vitamins and fiber.
#3: Sugar reduction and clean labels
Dairy already enjoys the health halo of a minimally-processed, natural food category. But in segments such as flavored milk, yogurt, coffee creamers and plant-based alternatives, brands are increasingly responding to consumer demand for simpler ingredient lists and more natural formulations.
Refrigerated creamers made with five ingredients or less are becoming mainstream in the US, where the category has become the fastest-growing refrigerated dairy space in the industry.
And in plant-based drinks, companies are pivoting to kitchen cupboard ingredients to deliver simpler formulations that would compel health-conscious consumers to stick with dairy alternatives.
#4: Meal snackification
The growth of snack-friendly formats is also rewriting how consumers eat.
As shoppers continue to seek out meal replacement products, dairy ingredients such as whey and casein hold the largest share of the global meal replacement market. Busy lifestyles and the weight management trend will be key drives of the meal replacement market, which is projected to be a $30bn+ market by 2030, according to The Business Research Company.
Formats such as yogurt pouches, cheese bites, and single-serve pots also cater to demand for on-the-go snacking.
And there’s scope for expansion in both the refrigerated and ambient – with technological advancements such as microencapsulation now allowing for product innovation that brings functional ingredients such as probiotics out of the fridge.
#5: Health meets sustainability
While affordability has put demand for sustainable dairy under pressure, brands that command both natural and eco-friendly claims continue to win favor with consumers.
Investing in certification to empower on-pack claims should be a key priority for brands that operated in the organic, regenerative, or grass-fed dairy space as these claims bolster brand value and sales alike, according to SPINS.
Using upcycled ingredients such as whey permeate could be a strong USP for high-protein snack brands; while sustainable packaging improvements can help meet regulatory requirements as well as contribute to a manufacturer’s long-term ESG goals.
Conclusion
And there you have it: healthy dairy snacking is gaining momentum as consumers continue to seek out protein-packed, natural and clean-label foods to reach their holistic health objectives: whether that’s eating well on-the-go or maintaining a healthy diet as part of their holistic wellness efforts.
Join the Positive Nutrition: Healthy Snacking Trends broadcast
Explore what types of snacks - including categories, flavours, sizes, and nutritional profiles - modern shoppers want.
Find out what ingredients and diets are gaining traction, how marketing and merchandising is evolving and how brands and retailers are meeting these needs.
