At the 8th of October 2018, the latest IFCN Dairy Report 2018 has been published. The report has become a guideline publication for researchers and companies along the whole dairy chain to understand the dairy world.
The data and insights can build the backbone for a comprehensive, holistic analysis and a solid fact base for discussions and strategic decisions.
In 2018, the IFCN Dairy Report focuses on the dairy value chain, covering 115 country profiles representing 98% of total global milk production. On the farm level, 177 typical farm types of 53 countries have been analysed. For the first time, fundamental indicators to asses sustainability on economic, social and environmental issues are monitored.
Online grocery shopping is growing at a double-digit rate, while traditional stores are being reinvented, merging together into an omnichannel where consumers expect to be able to buy whenever, wherever and however they choose, with the smartphone as their compass. Packaging will play an important role in response to the trends that are shaping the growth of on-line grocery, says the company.
The Tetra Pak Index 2018 highlights the four key trends shaping the growth of on-line grocery:
- Convenience The main driver for on-line consumer take-up, as time-crunched consumers look for new ways to make their life easier. Key opportunities include easy product replenishment, voice, and convenient packaging
- Sustainability Pressure on plastic and awareness of the circular economy will continue to grow, and recycling will become ever more important. Consumers want to know whether brands are ‘doing the right thing’
- Personalisation & uniqueness Customisation of products and personalisation in the consumer journey will be important differentiators going forward. This is accelerating the direct-to-consumer trend and as many as 80% of consumer-packaged goods companies are predicted to migrate to this model by 2025
- Technology & performance Super-fast delivery in as little as 10 minutes is expected by 2025, changing consumer behaviour to buy more frequently and in smaller amounts, adding more complexity to the logistics. Supply chains will continue to be transformed by a raft of technologies, notably radio-frequency identification (RFID) and robotics, boosting efficiency and transparency
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Danone has reported marginal sales growth of 0.4% in the first six months of the year.
In the second quarter of the year, consolidated sales stood at €6,664 million, up 0.2% on a like-for-like basis, reflecting a 2.1% decline in volume and a 2.3% rise in value.
Danone’s dairy and plant-based operations reported a drop in sales of 1.8% in the second quarter of 2017, as a result of a 4.8% decline in volume and 3% rise in value.
In Europe, Danone made investments in its Activia brand, with changes to packaging and local communication campaigns. It notes that local yoghurt brands such as Les deux caches in France, Light & Free in the UK, Danio in Poland and Benelux, and Oikas in Italy saw continued growth.
Report by K.S. McCarthy et al Department of Food, Bioprocessing and Nutrition Sciences, Southeast Dairy Foods Research Center, North Carolina State University
Fluid milk consumption has declined for decades while consumption of nondairy alternatives has increased. A better understanding of why consumers purchase fluid milk or nondairy alternatives is needed to assist increased sales of milk or maintain sales without further decline.
The objective of this study was to determine the extrinsic attributes that drive purchase within each product category. The second objective was to determine the personal values behind the purchase of each beverage type to give further understanding why particular attributes are important.
Fat content was the most important attribute for dairy milk followed by package size and label claims.
Sugar level was the most important attribute for plant-based beverages, followed by plant source and package size. Almond milk was the most desirable plant source, and half-gallon packaging was the most preferred packaging.
A distinguishing characteristic of those who only drank nondairy plant-based alternatives was that plant-based beverages contributed to a goal to consume less animal products, beliefs about animal mistreatment, and perceived lesser effect on the environment than fluid milk.
Unique to fluid milk consumers was that fluid milk was perceived as a staple food item. These results suggest that the dairy industry should focus on the nutrition value of milk and educating consumers about misconceptions regarding dairy milk. Future beverage innovation should include the development of lactose-free milk that is also appealing to consumers in flavor.
Corporate responsibility is built into SIG Combibloc’s business strategy. The concrete sustainability goals which the company aims to achieve are set out in the ‘Way Beyond Good’. This is what SIG is calling its roadmap to becoming a ‘net positive’ company. The company will be regularly reporting on the progress made towards meeting these goals, and has now published its first Corporate Responsibility Report. The Report follows the requirements of the internationally recognised Global Reporting Initiative (GRI) guidelines.
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The global trade in cheese and curd amounted to 26,811 million USD in 2015, showing notable fluctuations over the period under review. A significant drop in 2009 was followed by recovery over the next two years, until exports slightly decreased again. Overall, there was an annual increase of +2.4% from 2007 to 2015.
According to estimates, Germany continued to dominate in the global supplies of cheese and curd. In 2015, Germany’s cheese and curd exports totaled 3,753 million USD, which accounted for a 14% share of global exports. Netherlands, France, Italy, and USA were the other key global suppliers of cheese and curd in 2015, with a 40% combined share of global exports.
USA (+17% per year) and Italy (+3.9% per year) were the fastest growing exporters from 2007 to 2015.
The USA strengthened its position in the global export structure, growing its share from 2% in 2007 to 5% in 2015.
On the other hand, Germany (14%, based on value terms), the UK (7%), Italy (7%), France (6%), and USA (5%) were the leading destinations of cheese and curd imports in 2015. Imports to France grew at a quick pace of +3.8% per year from 2007 to 2015. By contrast, Italy slightly contracted its imports of cheese and curd over the same period. Every major importer saw a contraction in its share of imports over the period under review.
Although cheese is considered edible by most people, it can also be perceived as particularly disgusting to some individuals. As such, the perception of cheese constitutes a good model to study the cerebral processes of food disgust and aversion.
In this study, the researchers show that a higher percentage of people are disgusted by cheese than by other types of food.
To assess whether disgust for cheese is widespread among individuals, the researchers performed a survey of the French population. It revealed that among the individuals showing disgust for a given food, those disliking cheese represented a higher proportion than those disliking the other food categories. This finding is rather surprising because France is the country with the greatest variety of cheeses and one of the countries with the highest levels of cheese consumption. It suggests that similar results might be observed in other countries with similarly high levels of cheese consumption, such as western European countries and the United States.
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The market for 100% juice should return to growth despite global economic slowdown and the recent debate around sugar, according to Tetra Pak’s 100% Juice Index report.
According to the company, the combination of emerging growth hotspots and slowing decline in established markets is stabilising 100% juice and bringing it back to growth going forward to 2018.
Insights from the report show that 100% juice remains a significant part of the average consumer diet, with more than 40% of people drinking it every day. Furthermore, consumers say that they are willing to pay a premium for juices that they associate with healthy choices.
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The global dairy market outlook will remain weak throughout 2016, but with more upward pressure on prices as we head into 2017, according to the Rabobank Global Dairy Quarterly Q1 2016 report.
Global dairy commodity US dollar prices have continued to stumble along a market floor largely determined by the level of EU intervention support. The short-term outlook remains pessimistic. In the face of a cripplingly long price trough entering 2016, production growth in the world’s milk production regions has continued to slow.
“Looking forward, the news is by no means all bad for the dairy industry”, says Kevin Bellamy, Rabobank’s Global Dairy Strategist. “With the exception of Brazil—gripped by the worst recession in a generation—Rabobank sees dairy consumption continuing to grow in Asia, as well as in the US and EU.” Rabobank expects that, throughout 2016, slowing production growth will be matched by slow, but steady consumption growth in most main export regions.
The consultants believe U.S. dairy companies should consider four strategic responses – global growth, growth beyond traditional business models, insight-driven innovation, and operational and performance excellence – to capture growth in the current evolving environment.
Some manufacturers, they said, will grow by capturing share in the global market and employing “best-in-class” international export and local production capabilities. Other companies, excited about the prospects of ingredients and product categories beyond traditional dairy, will succeed by redefining their businesses and broadening their consumer bases. Targeting these markets will require “fit-for-purpose divisions” and tightly focused sales.
Noting that consumer preferences, particularly among Millennials, are evolving faster than ever before, Carbonneau and Meilhac explained the benefits of insight-driven innovation. Companies with top-notch consumer insight and product development capabilities can win consumers over through innovative product portfolios, they said.