The scope of environmental responsibility in the dairy industry includes developing innovations that support multiple initiatives, including reducing food waste and promoting recycling.

Approximately 41% of processors reported they increased their capital investments in 2023, and 43% plan to increase such investments in 2024. 

Consumers look for ways to add sophistication to their meals both at home and when dining out. 

Many manufacturers look to distinguish themselves by using sustainable packaging concepts and delivering convenience.  

In this environment, the biggest opportunity for innovation in the dairy market is to formulate products for consumers who purchase both dairy and dairy-alternative products, according to a dairy flavors and ingredients report from market research firm Mintel.

While innovation in the dairy category has been impacted by the pandemic and inflation, processors have found successful innovation centers around plant-based alternatives, new formats, simple ingredient listings and formulations that meet specific dietary needs.

Bel Brands USA, Chicago, expanded its line of Nurishh plant-based products this spring with two new formats – cubes and cream cheese style.

As important considerations in product development, Brie Buenning, director of marketing for Los-Angeles-based Aspire Bakery’s La Brea Bakery brand, said consumers are increasingly interested in how their food connects with their wellbeing, and they are looking for transparency when it comes to what is in their food.

The early days of the pandemic gave many consumers the opportunity to perfect their home baking skills, and consumers are still looking for ways to add quality bakery products to their at-home meals even as their schedules get busier. 

Space in grocery store bakeries is always at a premium, and labor issues have provided challenges in staffing them. At the same time, consumers still desire fresh, high-quality baked goods at their grocery stores as a part of a one-stop shopping experience.