Dairy processors betting on health and wellness for growth
Refrigerated dairy is the largest category at retail in terms of dollar sales, said Paul Ziemnisky, group executive vice president of science, innovation and business development for Dairy Management Inc., Rosemont, Ill., with “real dairy” being 21-times larger than plant-based alternatives and delivering more growth.
“But there are many untapped opportunities, especially in the health and wellness sector, and dairy can be so much bigger,” he said, when speaking at the Oregon Dairy Industries meeting April 9, 2023, in Salem, Ore. “Health and wellness is the No. 1 area for consumer disposable income spending. It’s valued at $350 billion and includes everything from food to health club memberships.”
“Hydration is the largest need,” Ziemnisky said. “Growth and performance are right up there.”
The research showed consumers are looking for products that help quench thirst, keep them hydrated and are high in electrolytes. They also want the products to be natural, simple and inexpensive.
GoodSport, a Chicago-based startup that had assistance from DMI, developed a clear hydration beverage that is 97% dairy. It delivers three times the electrolytes and 33% less sugar than traditional sports drinks, providing faster and longer-lasting hydration.
With growth and performance, consumers are looking for products that help them build muscle and help their muscles recover after exercise, Ziemnisky said.
“They want sustained energy and to improve athletic performance and endurance,” he said. “Dairy is packed with the nutrients that do all of that and more, such as supporting bone health.”
Another area of focus for health and wellness is weight loss and maintenance. This is especially important for consumers on medications intended to help them lose weight.
“There’s a lot of muscle lost during rapid weight loss,” Ziemnisky said. “These consumers need high-quality, complete protein to preserve their muscle.”