August 8, 2024 – In North America, milk is a staple due to its rich nutrient profile, providing essential vitamins and minerals like calcium and protein that support overall health. Innova’s 360 research on trends in milk helps dive into the dairy market and examine consumer preferences, the top brands and the innovations driving this dynamic category in the U.S. and Canada.
Trends in the introduction and sale of dairy products
North America is the smallest region for milk and dairy product launches in the last year, yet the value of milk sales has grown by 3% over the last five years. Milk trends show that unflavored milk is the leading subcategory in dairy product launches, followed by flavored milk. Canada has seen a 5% increase in dairy beverage launches over the last three years, offering a wider range of choices such as Canadian milk, a range of lower fat semi-skimmed milk, and milk beverages in various fruit flavors and blends. Milk trends research shows that the United States leads North America in the value of milk sales, averaging 79% of sales over the last five years. Products for children (5-12 years) in pouches and high protein ultra-filtered whole milk in various flavors are gaining traction in the dairy market, indicating an increasing demand for various dairy products in the region.
Flavoured milk trends
Over the past three years, flavored milk launch rates have fluctuated, with a slight increase in 2024. Creamy concoctions and indulgent flavors such as strawberry, blueberry and red raspberry, as well as cross-category innovations such as cheesecake, cookies, Oreo and shortbread are driving these launches. Abbott is leading flavored milk launches in North America, supported by its high-protein nutritional shakes, which come in a variety of flavors including brown milk chocolate, mocha coffee and fruit. This highlights growing consumer interest in both traditional and novel flavored milk products, reflecting a desire for indulgence and variety in beverage choices.
Trends in unflavored milk
Examination of dairy trends shows that unflavored milk is the top subcategory, accounting for 64% and 60% of launches in Canada and the United States, respectively, over the past four years. 1 in 5 consumers in the U.S. and Canada seek out unflavored and bland milks. This preference is reflected in the 5% CAGR growth in unflavored dairy products in North America over the same period. Products containing 100% real milk offer a pure and natural experience. For those who want a specific fat content, choices range from creamy to lighter options. Even powdered milks, including nonfat dry milk powder and goat milk powder, offer convenient and versatile choices and are driving unflavored milk adoption. Food Lion led the way in unflavored milk adoption last year, primarily through ultra-pasteurized dairy products, various reduced-fat options, and the launch of whole milk products.
Milk trends: claims and positioning
In the North American dairy market, the top 5 claims are protein source, low/no/reduced fat, organic, lactose free and gluten free. These claims vary from country to country; in Canada, the top claim is protein source, while in the United States, low fat, fat free and reduced fat are top. Examination of dairy trends shows that in addition to these top 5, other claims are also increasing across the region. In Canada, vitamin and mineral fortification, and no additives and no preservatives are on the rise. In the United States, halal, bone health and brain health claims are becoming increasingly popular. This highlights the increasing consumer focus on health and wellness, prompting brands to develop more products and cater to the specific dietary needs and preferences in different regions of North America.
Milk trends: flavors
The flavor landscape for milk in North America continues to evolve, reflecting diverse consumer preferences and innovations in the market. Milk chocolate is the top flavor, followed by strawberry, vanilla, banana and mango. Over the last year, mocha coffee and blueberry flavors have gained popularity and are on the rise. These new flavors indicate an interest in new and diverse flavor options in the milk category in North America.
What’s next in milk trends?
Examination of dairy trends shows that the North American dairy market is evolving rapidly, with unflavored milk leading the way in launch. This creates opportunities for brands to innovate and expand their offerings by launching different types of processed milk to create a wider choice, as well as ultra-pasteurized milk fortified with vitamins A and D. Consumers are increasingly health conscious and prefer products labeled “free from.” Brands can capitalize on this trend by targeting allergen-sensitive consumers with lactose- and gluten-free options. Additionally, they can focus on benefits such as bone health from vitamin D and calcium, digestive health from formulations with prebiotics, and immune health from vitamin C. Consumers’ preference for clean labels and indulgent flavors is driving dairy market growth and diversification. Brands are likely to develop more indulgent flavor profiles and cross-category flavor innovations to enhance the taste experience. As the market evolves, brands will likely continue to explore new formulations and health claims to meet the dynamic needs of health-conscious consumers. This article is based on our report, Overview of Milk in US and Canada. If you are interested in this report, please feel free to request a demo. You can do so by either booking a demo or using our contact form.
