According to “2019 Trends and Advances in Food Packaging and Processing,” a report by PMMI Business Intelligence, dairy holds a 14.9% share of the nine food categories, and though the number of establishments decreased to 1,258 between 2014 to 2017 (a CAGR of -0.6%), the number of employees increased to 124,075 in the same period, at a CAGR of 2.8%.
Dairy product packaging trends include more PET for recyclability for dairy creamers, more shelf-stable, biodegradable and transparent packaging, and the growth of retail-ready packaging, as well as flexible packaging. Both dairy-free and cheese snacks grew in the past year.
Of dairy trends, one Senior Production Specialist at a dairy company said, “Cheeses are growing but we’re consolidating SKUs to avoid capacity issues.”
Dairy Product Processing Trends
· The U.S. Department of Agriculture predicts dairy product prices to increase 3% to 4% in 2019.
· More pouches and bags for milk for commercial and retail. Corporate engineering manager says, “Milk tastes better in bags.”
· Growth in new flavors, both dairy and nondairy.
· Dairy is trending toward more natural, organic, and artisanal products.
· Dairy producers have been able to pass on raw milk costs to consumers.
Consumer habits are driving change in this market as fluid milk production decreased 2.3% from 2017 to 2018. The popularity of yogurt has increased, particularly plant-based yogurt, which grew 39% from 2017-2018. Plant-based cheese popularity has also increased, growing 19% from 2017-2018.
The demand for refrigerated almond milk increased while refrigerated soy milk and kefir both decreased demand. Butter as a natural fat is experiencing a resurgence as well. And another healthy dairy trend is the addition of more protein to products in the form of whey powder.
Source: PMMI Business Intelligence “2019 Trends and Advances in Food Packaging and Processing”
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Make plans to visit PACK EXPO International in Chicago, November 8-11, to see on-trend food processing and packaging machinery and materials.