DAIRY DESSERTS IN FOODSERVICE

• The foodservice market has a slightly larger share (55%) of the total US ice cream and frozen dessert market compared to the retail sector.
• Ice cream and frozen dessert sales have hovered near $27 billion for the past several years, and foodservice sales comprise $15.7 billion.
• There is a downward trend in foodservice growth since 2016 due to restaurant closures, causing a rise in retail ice cream sales.
• According to KanPak, 50% of restaurants have ice cream on their menu, while 11% of the restaurants offer milkshake.

CONSUMER CONSUMPTION

• According to KanPak, 68% of consumers most often enjoy soft-serve ice cream as a snack, specifically in the afternoon.
• Milkshakes are commonly consumed with a meal, especially during lunch — 47% of the time.
• The top reason for consuming frozen desserts, according to 60% of respondents in KanPak's survey, was to satisfy the craving, while the second most cited reason was to treat themselves.
• According to the Datassential Dessert's Sweet Spot Keynote Report 2019, ice cream is still the most consumed dessert.
• According to 45% of operators, dessert beverages rank among the top three in the best-selling desserts. These include affogatos and milkshakes.

MILLENNIALS

• According to a report from Dean Foods, Millennials, who have traditionally skewed their consumption to foodservice, have favored ice cream consumption at home.

RESEARCH STRATEGY

USEFUL FINDINGS

• The whipped cream market size in the U.S. in 2015 and 2016 was $508.5 million and $550.1 million respectively.
• According to Business Wire, the U.S. is the second largest whipping cream consumer after Germany, which consumed 128 kilograms in 2017.
• According to Grand View Research, the whipped cream market size in the U.S. has been gradually increasing since 2015 and is projected to continue until 2025.
• It is noteworthy that there is an increased demand for light whipped cream because of health consciousness among consumers.
• In addition, whipped creams with flavors, such as vanilla, chocolate, cinnamon, and coffee have driven the high demand.
• Furthermore, social media has played a crucial role in the demand for whipped cream with food bloggers showing people the different ways of using whipped cream in pies, tarts, and cakes.

RESEARCH STRATEGY

HELPFUL FINDINGS

• Fluid milk and cream availability declined steadily over the years from 273.8 pounds per person in 1970 to 198.8 pounds per person in 2012. 
• According to the United States Department of Agriculture, Economic Research Service, the availability of cream in the US in the year 2001 was 1,146 million pounds as compared to 1,008 million pounds in 2000. 
•  In 1999, the United States Department of Agriculture, Economic Research Service reported the availability of half-and-half cream as 960 million pounds, light cream as 168 million pounds and heavy cream as 555 million pounds.
•  No latest statistics were available through the United States Department of Agriculture, Economic Research Service in the availability of total cream or by split by half-and-half cream, light and/or heavy in the US.
• Milk & Cream segment in the US amounts to $18,499 million in 2019. The market is expected to grow annually by -0.2% (CAGR 2019-2023).
• The average per capita consumption of Milk & Cream segment in the US stands at 65.9 kg in 2019.

RESEARCH STRATEGY

INDUSTRY STATISTICS

• BusinessWire created a market report with the demographic information of the US consumers of cottage cheese.
• In 2015, the US produced 5.3 million metric tons of cheese making him the second largest cheese-producing region in the world, after the EU.
• According to a study conducted by Statista, the retail sales of cheese in the US is $12.9 billion.
• Most reports from the cheese industry don't include cottage cheese since it is considered a different type of product based on its production process.
• Cottage cheese is being marketed as a high protein and low-calorie food.
• In 2017, the consumption of cottage cheese per capita in the US was 2.1 pounds. This number has remained stable from 2013 to 2015 at 2.1 pounds, only raising at2.2 pounds in 2016.
• The same year, more than 162 million people in the US consumed cottage cheese as part of their regular diet.
•  45% of the households in the US buy cottage cheese at least once a year.

DEMOGRAPHIC PERCEPTION AND TRENDS

•  Baby boomers are aware of the benefits they receive from cottage cheese and love its taste.
• Baby boomers have consistently loved cottage cheese since the '70s.
• Cottage cheese brands from all around the world are trying to innovate their marketing and presentation of the cottage cheese to attract younger generation Xers and millennials.
•  Younger generations are pleasantly surprised when they try cottage cheese and find their dislike was just a perception.
• The objective of the cottage cheese brands is to present cottage cheese as an organic, non-GMO, and healthy alternative; while demonstrating that it is trendy and not a mom's food.
•  Millennial consumers, particularly those between 18 and 34 years old, are showing more interest in cottage cheese and considering the product healthy, delicious, and convenient and eager to incorporate it in their diets.

BRANDS DEMOGRAPHIC APPROACH

• The most used brands of cottage cheese in the US are Store Brand, Daisy, Breakstone's, Knudsen, Dean's, Hood, Friendship, Prairie Farms, Axelrod, and Light 'N Lively.

• Sindhura Polasanapalli, Dean Foods' director of innovation, stated that for the past years, cottage cheese has been perceived as food for grandmas.
• Dean Foods is trying to shift this perception and target younger generations by explaining its nutritional benefits.
• They've also developed the DairyPure Mix-in line that allows their consumers to eat cottage cheese in a snack package and mix it with a variety of options.
• Polasanapalli said that staying relevant with their consumers' need is what motivates innovation in their brand. Adding, "there are demographic, cultural and culinary shifts that are changing consumption and purchase behaviors, and we need to innovate and deliver the right solutions to meet those ever-changing needs."
• Dean Foods has indicated their current target on millennials, due to their spending power and because they represent the largest demographic.
• Their marketing campaign is focused on changing the perception millennials have about cottage cheese as an older generation's favorite.

• A market analysis made for Daisy in 2014 recommended a shift in strategy to target "Young Educated Millenial Mothers" between the ages of 25 and 34 years old, with children under six years old, and in households with dual-income.
• Millennial cottage cheese consumers have a trend to look for healthy food alternatives, but also practical, easy to consume, that will help them keep a balance in their lives.

• Gerard Meyer, CEO of Muuna, indicated that in the recent years, they have modified their presentation of cottage cheese and been enthusiastically received by consumers from all generations, millennials, Gen X, and Baby Boomers, as they are all looking for healthy snack options that taste good and are high in proteins.
• Muuna has successfully created a trendy cottage cheese product that generation Xers and millennials enjoy.
• To approach millennials, they've used social media influencers and fun marketing campaigns that make cottage cheese look "cool."

RESEARCH STRATEGY

HELPFUL FINDINGS

• Amongst people that use sour cream, creaminess is directly associated with consumer satisfaction. When assessing the creaminess of a product, consumers primarily rely on flavor and texture.
• According to Statista, 235 million Americans use sour cream in 2019, compared to 91 million who don't.
• Starting in 2012, researchers observed that consumers are increasingly desiring low-fat sour cream. Additionally, consumer demand is aimed towards milder sour cream flavors due to consumers’ dislike of "too sour" fermented product tastes.
• According to a 2018 Mordor Intelligence market study, flavor combinations that included spicy, roasted, and other exotic flavors are among the most demanded.
• Sour cream is mostly consumed with snacks as a dip, topping or mixed with other ingredients to use as a spread. Among the most preferred flavors for using as a spread are savory and spicy flavors.
• Most prominently, sour cream is consumed as a topping to snacks, baked potatoes and bakery products.

RESEARCH STRATEGY

KEY FINDINGS

• According to research, Generation Z consumes 550% more plant-based milk than Generation X.
• A report by helixa indicates that plant-based milk reported the growth of 61 percent from 2012 to 2017.
• According to plant based foods, the plant-based milk has grown 3.1 percent over the last year. The U.S. sales of almond milk reached $1 billion in 2014.
• Almond milk sales have grown by 250% in the past five years.
• The annual consumption range of macadamia nuts varies between 8,800 – 9,800 metric tons in the U.S and the country is known as the largest consumer.
• Roughly 35.0% of people ages 20-29 consume nuts in the united states and likewise people ages 60 and above."Among men aged 20–39, 33.2% consumed nuts, while 40.0% of men aged 60 and over consumed nuts. Among women aged 20–39, 36.8% employed nuts, while 44.1% of women aged 60 and over consumed nuts."

RESEARCH STRATEGY

YOUNG ADULTS (18-24)

• The dairy industry is attempting to adapt its products towards high-protein, portable products to meet the demands of young, single adults.
• When dieting, this generation is more likely to chose high-protein diets, and has turned away from cow milk in favor of plant-based alternatives.
• The consumer trend towards healthy eating habits among young adults has propelled the growth of the milk protein market.
•  Bolthouse Farms, a producer of high-protein plant-based milk, is most popular with consumers between 18 and 24.
• This age group is the second-largest consumer age range of Fairlife products. Fairlife is an ultra-filtered milk producer.

ADULTS (25-45)

• Consumers between the ages of 25 and 44 represent the age range most popular with Ripple Foods, a manufacturer of high-protein pea milk.
• Customers between the ages of 25 and 34 were the most popular consumer age range of Fairlife products.

OLDER ADULTS (over 64)

• This generation is interested in high-protein milk products to combat the loss of muscle mass, and are more likely to consider protein from plant-based sources healthy than younger generations.

RESEARCH STRATEGY

HELPFUL FINDINGS

DEMOGRAPHICS

•  Lactose-Free Milk is popular among millennials and especially millennial parents who want their kids to consume lactose-free milk due to lactose intolerance.
•  People with lactose intolerance prefer lactose free milk as it contains lactose enzyme which digests the Lactose present in the milk.
• Around 30 million American adults aged above 20 are lactose intolerant and is most prevalent in African, Asian, or Native Americans.
• People aged 20-40 years experience lactose intolerance in the US.
• In the case of whites, lactose intolerance starts at the age of 5 but in the case of African Americans, it starts from 2 years.

SALES/MARKET SIZE

• In 2017, US lactose-free milk comprise sales of $923 million with 13% increase in growth rate.
• In 2016, US lactose-free milk comprise sales of $820 million.
• The global lactose-free dairy products market size is US$ 10,582.5 million by 2017 end and expected to grow US$ 17,809.4 Million by 2027 end with not further segmentation on lactose-free milk sales.
•  The global lactose-free milk segment is witnessing high growth rate with an increase of demand at a global scale.

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY

MILK AS PART OF FOOD SPENDING, BY GENERATION, 2014

• The USDA’s Economic Research Service (ERS) published a report on food spending by age category in December 2017, based on 2014 data.
• The USDA ERS report found that the average Millennial spent $1.80 per month on milk, Gen Xers spent $1.96 per month, Baby Boomers $3.44 and Traditionalists spent $7.12 when examining the "total monthly dollars spent per household by food category".
• The USDA ERS report also found milk, as share of expenditure by food category, to be as follows: Millennial 1.70%, Gen X 1.74%, Baby Boomers 2.15% and Traditionalists 2.32% 
• The lower proportion of spending on milk is attributed to the younger consumers' tendency to "eat out more often".

ANNUAL MILK CONSUMPTION BY GENERATION, 2001

• In 2003 Michael Hutjens, an agricultural university professor and dairy specialist, discussed US milk consumption for the most recent year for which statistics were available (2001) in the Illinois. Although this information is out-dated, the information provided by the relative consumption by each age group may still be relevant.
• Average annual milk consumption by age group was noted as follows:

MILK CONSUMPTION BY CAPITA FROM 2013 TO 2017

• The USDA ERS publishes data on the US dairy industry and market on an annual basis, including average milk consumption per capita.
• The most recently published figures for milk which includes dairy milk with various fat content as well as "flavored, buttermilk, eggnog, and miscellaneous" are for 2017, so that the past 5 years average consumption per capita are as follows:

US MILK CONSUMPTION DATA IN 2015 AND 2017

• Mintel reported that 91% of Americans consumed traditional milk in 2015.
• In 2015 57% of traditional milk consumers drank it by itself, 61% used traditional milk as an ingredient and 69% as an addition, for example, poured over cereal.
• Although traditional milk consumption is on the decline with a 15% drop in consumption between 2012 and 2017, the consumption of whole milk is on the rise with an increase of 8% between 2012 and 2017.
• The consumption of skim and low-fat milk has decreased more sharply than the traditional milk category as a whole, dropping 28% between 2012 and 2017. This is attributed Americans preferring "a more natural and holistic approach to nutrition".

RESEARCH STRATEGY

FINDINGS

• Heavy whipping cream and heavy cream are the same product, according to the United States Food and Drug Administration (FDA). In contrast to light whipping cream, it has higher milkfat content. Heavy whipping cream has at least 36% milkfat, while light whipping cream has 30% to below 36% milkfat.
• The report on heavy cream that Maia Research has recently published provides the historical and projected consumption of heavy cream in North America from 2013 to 2023. The consumption statistics, however, are not segmented by age group and are behind a paywall.
• The report on whipping cream that HTF Market Intelligence has recently published provides the volume sales of full fat (heavy) whipping cream in the United States from 2014 to 2019, but these sales are not broken down by age group and are behind a paywall.
• There are several ongoing trends that drive growth in the global whipping cream market, according to market research firm Technavio. Among these trends are the growing number of coffee shops or cafés, the growing consumption of organic whipping cream, the rise of private label brands, the rise of flavored or innovative whipping creams, the launch of new whipping creams, the expansion of the retail landscape, and the growing consumption of foods topped with whipped cream or foods thickened with whipping cream (e.g., soups and sauces). Because of these trends, the global whipping cream market is expected to grow at a CAGR of 4% during the period 2019-2023.
• Whipped cream, whether derived from light or heavy whipping cream, is commonly used in the beverages that cafés offer. Typically used as a topping, it has applications in coffees, iced teas, milkshakes, chocolate beverages. pastries, waffles, scones, and cupcakes. The varying preferences and tastes of consumers when it comes to premium coffee are, in part, driving demand for whipping cream.
• Demand for organic whipping cream is growing, owing to consumers' increased interest in organic products. Consumers, especially those in developed countries such as the United States, are limiting their intake of food and beverages that were at some point exposed to chemical fertilizers and pesticides.
•  Organic Valley, Humboldt Creamery, and Horizon Organic are examples of companies in the United States that offer consumers organic heavy whipping cream.
• Flavored whipped creams, featuring flavors such as chocolate, vanilla, coffee, cinnamon, rose, orange, and kahlua, are emerging.
• According to Amanda Agee, Cook's Illustrated's editorial director, heavy whipping cream is preferred in the creation of soups, sauces/dips, and whipped cream. Soups and sauces made with heavy whipping cream have a more luxurious flavor and feel, while whipped cream made with heavy whipping cream holds its shape longer. Agee says heavy cream is worth using despite the calories it adds to a dish.
• There are sources indicating that Millennials and Gen Zers are fond of dips and sauces.

RESEARCH STRATEGY