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Emily Darchuk Oregon State University Extension Expo West 2018 Trend Presentation
Emily DarchukOregon State University Extension
Expo West 2018Trend Presentation
Background
Goal of this Presentation: Holistic View to Innovation
Presentation covers:
- Product, Communication and Positioning Trends- How can the dairy industry incorporate these trends to
connect with the “Natural Consumer”
But none of these trends are a one size fits all solution for every company!
Innovation Process
• Identify problem•Consumer, Customer, Industry
•Brainstorm a solution
•Determine if you equipped to solve it
• Is there a reason for consumers to believe that you are the solution?
Innovation involves intentional development designed around meeting a need
“It is easier to sell someone an Aspirin versus a Vitamin”
About Expo
Dairy Product Trends
Fat Inversions
Dairy Fat is Good!
Increased fat level products are now emerging; Grass fed is key value statement for health perception
Grass-fed- “The Original Plant Based Milk”
Grass-fed is the Grain Free Trend for Dairy
Consumers are starting to see full fat dairy as a healthy snack option; Grass-fed is seen as healthiest
• Organic (Grass-fed) dairy products have been shown to have 50% more beneficial omega-3 fatty acids than conventional dairy products1
• Full fat Grass-fed dairy has the largest benefit
• Some consumers may seek out grass-fed over organic to ensure the health benefits and are willing to pay a 30-50 % premium over conventional products2
Some consumer perceived benefits3:
- Protects from diabetes ( in low sugar products)
- Satiety/Weight loss
- More natural, flavorful and less processed
- Better for the animals
1. https://well.blogs.nytimes.com/2016/02/15/more-omega-3-in-organic-meat-and-milk-review-of-studies-says/?_r=02. https://www.npr.org/sections/thesalt/2017/03/22/520015345/why-more-farmers-are-making-the-switch-to-grass-fed-meat-and-dairy3. https://westerndairyresourcecenter.files.wordpress.com/2017/04/fat-is-back-executive-summary-aug2016-vf.pdf
In 2017, Grass-fed yogurt and kefir sales have increased by over 38%, where traditional products have seen ~1% decline1
Grass-fed fluid milk and dairy products produced $75 million in revenue in 201621. https://www.npr.org/sections/thesalt/2017/03/22/520015345/why-more-farmers-are-making-the-switch-to-grass-fed-meat-and-dairy2. http://www.swnews4u.com/archives/34804/
Probiotic as a Platform
Other Product Trends
Snacks Reinvented
Wholesome Snacks for Kids
Traditional Flavors Elevated
Yerba Mate Is the Trending Source of Energy
Beyond Gluten Free to Grain Free
Water Water Everywhere !
Plant Based is Now Gourmet
Positioning Trends
Focus on Babies
HEMP and CBD as a Nutraceutical Solution to Pain
• One of the largest trends of the year• One day industry workshop for CBD
Business Development• Market expected to sell $646 million by
2022
Functional products to replace Opioids:- Sleep aid- Inflammation reduction- Anti-anxiety
Celebrity Partnership is New Influencer Marketing
Mainstream Dairy Looks to Non-GMO
Brands Look Beyond Non-GMO
• More active communication
• Transparency in sourcing
• Partnerships and sponsoring of environmental cause companies
• Holistic approach to food manufacturing
• More Organic vs just “Non-GMO”
Greening effort is gaining authenticity and engagement from many companies
Regenerative Agriculture is the New Sustainability
- Focus on soil health versus certification
- More holistic and situational based approach to farming best practices
- Connection between animals and agriculture
- Provides value to those farmers in transition to organic
- Differentiation to other competitors
- Removes “stigma” of sustainable or Organic from skeptical consumers
Sustainable Animal Products
Back to the Farm
Triple Bottom Line in Action
Messaging Trends
It isn’t the product you sell but the story you tell…
What does your packaging say about you?
Nancy’s Packaging Refresh
Dairy Innovation Opportunities
Permissible Indulgence- Taste is Key Differentiation
Connect to the farm and celebrate giving back
How can innovation can be good for bottom line?
Increasing yield = Increasing value for consumers
Offer Convenience for those who Resonate with Dairy
Moms on the GoKeto Diets Energy on the Go Protein on the Go
Conclusion
Intentional Innovation
Thank you!
You can find me at:
www.linkedin.com/in/emilydarchuk
Any Questions?
