Dairy is ubiquitous but in the face of disruption from alternatives and detractors it must innovate to remain relevant.

1. Keeping dairy relevant
Susie Stannard, Senior Consumer Insight Analyst, AHDB
August 2018
AHDB Consumer Insight Snapshot

2. Where is dairy losing consumers?
Source: Mintel

3. Decline in dairy consumption is mostly unconscious
• % of decliners of the respective market (milk, cheese, butter, yogurt) who are doing it consciously.(‘actively trying to eat less or cut out’)
15% 35% 36% 19%
Cheese and butter most likely to be cut back
consciously compared with other dairy markets due
to fat reduction/diet mentality
The dairy industry needs to tap into
what consumers want to stay
relevant

4. People who HAVE declined their dairy consumption are
more disengaged with the category: just looking for value
for money, rather than brands or flavours

5. People who have declined their consumption are
more open to alternatives

6. And they are more open to negative messages
Base: All respondents in Dairy section (1120), who have concerns about the dairy farming industry and how milk is produced (337)
DQ36_W10: Do you have any concerns about the dairy farming industry, and how milk is produced?
DQ37_W10: What are your concerns?

7. But these messages can come from outside
sources and may not be correct
Base: All respondents in Dairy section (1120)
DQ38_W10: What sources of information have influenced your opinions of the dairy industry over the years?

8. Dairy-free is dominant in the conversation

9. But cheese has managed to stay in tune with
consumer needs and stay relevant

10. Which has a protective effect on the category

11. Alternatives have marketed themselves very
effectively
• New flavours
• Exciting packaging
• Innovation to lifestyle – on-the-go
• Cachet of Instagram associations
• Category in motion – enticing to retail
• Importance of brand

12. But the dairy sector can innovate to drive relevance
Building the story
Hitting the coffee
break
Finding a tribe

13. There are opportunities to
re-engage with young
people
- Gen Z aren’t rejecting, they
are questioning
- Food is their Rock and Roll
- Identities are built around
tribes
- While Millennials would rather
eat out than drink, Gen Z want
to recapture scratch cooking
Credit:
TheFoodPeople

14. Version: 16:9/2017-11-09a
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