“Navigating the Rise of Value-Added Food and Beverage Products: Opportunities and Challenges for Dairy in a Health-Conscious Market”

Value-added food and beverage items are increasingly popular among today’s health-conscious consumers, who are looking for convenient ways to enhance their daily nutrition. This trend is evident in the growing demand for probiotic-infused products across both health-focused and indulgent categories. However, the proliferation of probiotic label claims has raised concerns in the industry, as some suggest that consumers might opt for unhealthy foods simply because they carry a value-added label, mistakenly believing it indicates a healthier choice.

The trend of incorporating value-added ingredients is particularly pronounced in the beverage sector. Products like drinkable yogurt, kombucha, and drinking vinegars are celebrated for their probiotic benefits, leading to significant sales increases in their respective markets. Furthermore, innovative offerings such as vitamin-infused coffee and tea, alongside cocktails enriched with vitamins and minerals from all-natural, non-GMO sources, have also emerged.

In contrast, dairy milk has struggled to maintain its reputation as the healthiest option in its category, despite being fortified with added vitamins. Aggressive marketing by plant-based and nut-based milk brands has successfully positioned these alternatives as trendy and nutritious options. For instance, pea milk producer Ripple has even developed an engaging game that educates consumers on the superior nutritional profile of pea milk compared to dairy milk.

Dairy milk’s decline in popularity can be attributed to its higher fat content, relatively shorter shelf life, and, for some consumers, its unique flavor. As this research indicates, the presence of added vitamins, including calcium citrate and calcium citrate malate, might alter flavors in ways that lead consumers to question the freshness or quality of their dairy milk. To better compete with alternative products, dairy manufacturers should invest in strategies to minimize the impact of vitamins on flavor. Additionally, milk producers could enhance their marketing efforts by highlighting the value-added benefits of dairy milk, similar to the tactics used by plant-based brands. Many consumers may not be aware of the vitamin A and vitamin D fortifications in dairy products, and increased awareness of these nutritional advantages could entice some to return to traditional dairy.

However, this approach may have unintended consequences in the organic milk market. Consumers who prioritize organic dairy often perceive it as a product that remains untouched by human intervention beyond pasteurization, which isn’t always accurate. Focusing on the added vitamin profiles, including calcium citrate and calcium citrate malate, might undermine this perception and deter organic consumers. Therefore, while promoting value-added aspects is essential, dairy producers must navigate the complexities of consumer perceptions carefully.