Summary
- Many shoppers perceive processed dairy and high‑sugar products as less healthy, fuelling skepticism toward health claims.
- Bold promises, especially combining indulgence with wellness, often seem unrealistic, making consumers doubt credibility.
- Transparency, natural ingredients, and strong taste delivery are essential for rebuilding trust and driving trial.
Health and wellness is one of dairy’s biggest growth opportunities. The category is well-positioned to benefit from major consumer trends such as gut health and weight management, with fermented and high-protein products experiencing high demand.
According to Future Market Insights, the functional dairy space – comprising categories such as high-protein and probiotic dairy among others – will more than double its value in the next decade. Healthy-indulgent categories such as protein bars are also poised for expansion at a CAGR of around 9-10%, according to different market research agencies.
All this suggest there’s strong growth momentum for dairy products marketed as healthy and healthy-indulgent.
Yet, research shows that some consumers may be skeptical about the wellness credentials of some processed products.
According to a paper published by the EIT Food Observatory, some consumers doubt that healthy products can be tasty at the same time and may be deterred from buying products positioned as low- or reduced-sugar, thinking that combining health and indulgence in the same package is too good to be true.
And so, while protein bars, shakes and dairy products are recognisable examples of existing healthier indulgent products, it may be time for brands to reconsider their innovation strategies in order to to continue attracting health-focused consumers to these categories.
The problem with dairy’s image
Professor Klaus G. Grunert told us that dairy is no longer immune to consumer skepticism regarding its healthy image.
“If we look back 10 or 15 years, dairy products were generally regarded as healthy. That’s changed. There’s much more skepticism now – even around something as basic as milk. And the perception of products like yogurt has shifted quite a lot.”
For example, high-sugar yogurt is no longer viewed as a healthy item, he added. “Consumers have become more aware that some of these products, because of their sugar content, may not be as healthy as they once seemed,” Grunert explained.
Repositioning healthy-indulgent dairy
So how can manufacturers in these segments tackle these perceptions? “Some dairy products do have the advantage of starting from a naturally strong health positioning,” Grunert explained. “Certain types don’t even aim for indulgence. But for the rest, the key challenge is regaining credibility – re-establishing that these products are, in fact, healthy.”
There is no single solution here, but being transparent about ingredients, nutritional properties, and health effects can go a long way to addressing skepticism.
“Dairy still has good opportunities here because many products are considered meaningful or worthwhile,” he added. “Many yoghurt varieties, flavored milks, and similar items, already offer an indulgent element – so if the health perception can be rebuilt, that combination can work well.”
Products can also be repositioned through usage occasions and premiumisation – according to the report, consumers trust premium products more because of their price tag.
Protein bars – which fall into the ‘too good to be true’ space of combining health and indulgent claims – need to be extra mindful of taste perceptions going forward. “The advantage is that these products are [already] frequently purchased,” Grunert said.
“That can be a hurdle at first, because when a new product enters the market with the message that it delivers great taste and better health, consumers may be skeptical. But once people try it and find that the promise holds – that the experience is genuinely good – that’s where the real breakthrough happens.”
In a nutshell, the challenge is to get consumers to try the product, and then ensure the experience truly matches the promise.
“Expectations influence perception – if people think it won’t taste as good, they may say it doesn’t, even after tasting it,” said Grunert. “But if the product is close or genuinely as good as the alternative, people will learn.
“Over time, they may develop a habit of choosing that healthier option.”
