In February 2025, the German biogas specialist WELTEC BIOPOWER has successfully completed the commissioning and handover of a dairy RNG (Renewable Natural Gas / biomethane) plant in Barron County, Wisconsin. After just four months of construction, the dairy farm produces 2.36 million standard cubic meters of RNG/biometha- ne annually (86,600 MMBTU per year). This RNG, above gas grid specifications, is processed using advanced membrane-based gas upgrading technology to deliver 272 standard cubic meters per hour (159 SCFM), which is compressed, bottled and transported to a gas grid injection point. This strongly carbon-negative RNG is drawn off the gas grid elsewhere, significantly enhancing the sustainability of the transportation fleets of the buyers.
Sustainable agricultural practices
The farm currently has a herd of 3,400 cattle, primarily Holsteins along with a select number of Swiss cows. The owners previously operated an AD plant producing electricity for on-site use, so the concept was not new for them. “For years, we have been utilising cattle manure to generate biogas, meeting our farm’s electricity and heating needs while also fertilising our fields with digestate,” said the owner. “With the new RNG facility, we have expanded our digestate utilisation on a larger scale and now store it in our dedicated lagoon for optimal land application.”
Four months construction time thanks to modular design
WELTEC BIOPOWER constructed three 6850 cubic meter (1.8m USG) duplex stainless steel digesters for the new biomethane plant near Rice Lake: “We constructed the tanks using a ring-by-ring assembly approach, with the final step involving the installation of a gas-tight membrane storage roof,” explains responsible WELTEC BIOPOWER North America COO Carsten Hesselfeld. With a diameter of 31.48 meters, the 8.8 meter high, insulated stainless steel tanks each have a gas storage volume of 3320 cubic meters. “Our modular construction method, tried and tested worldwide over the past 20+ years, contributed significantly to the short construction time of the plant,” emphasises Hesselfeld. The plant is designed to process 207,000 metric tonnes of cattle manure annually (150,000 USG per day), with some flexibility to incorporate future increases in herd size.
Efficient biomass processing and energy output
The facility employs a streamlined process flow, with manure fed from the barns into a 1,543 cubic meter (408,000 USG) stainless steel pre-storage tank before being pumped into the digesters. The digestion system has a retention time of 34 days, before the biogas is upgraded in a membrane-based system (specified, purchased and integrated into the central SCADA system under WELTEC BIOPOWER contract) into high-quality RNG at gas grid specifications. Digestate is pumped from the RNG plant to the existing lagoons. WELTEC BIOPOWER designed and supplied key components for the project, including digesters, a prefabricated containerised pump-block system, heating and boiler containers and a prefabricated factory-tested control container to simplify works on site, enhance the fast construction time and ensure optimal operational efficiency.
Savings through CO2 equivalents and tax benefits
By utilising biomethane as a fuel source, the dairy achieves substantial environmental benefits, reducing carbon emissions by approximately 11,200 tonnes of CO2 equivalents annually. Additionally, the plant owners capitalise on financial incentives such as RNG tax credits and fuel tax allowances. This project (particularly the strongly negative RNG, the fast construction time and the relatively low CAPEX for such a project) is a great example of the huge potential that still exists for biogas/RNG development at some of the smaller dairy farms in the USA. Projects like this have a key part to play in de-carbonising North American agriculture, and de-carbonising US truck fleets. With the successful implementation of this dairy RNG project, WELTEC BIOPOWER continues to drive innovation, quality and cost-effective solutions for dairy RNG developers, as well as continuously developing market-leading expertise in the co-digestion market.
Arla Foods Ingredients has launched a new campaign to inspire dairy manufacturers to create innovative high-protein products.
Over four in ten consumers globally say protein is the most important ingredient.1 However, conversations around the vital nutrient are changing, with health-focused shoppers increasingly focusing not just on how much protein they consume, but also its nutritional quality. Manufacturers of high-protein products can also face challenges around differentiation, processing, taste and texture.
The ‘Go High in Protein’ campaign showcases the Arla Foods Ingredients Nutrilac® ProteinBoost range of patented microparticulated whey proteins, which are rich in all the essential amino acids. It demonstrates how they can be used to overcome technical challenges and create high-protein dairy products with appealing taste and texture.
At the heart of the campaign is a new virtual protein seminar, featuring presentations from expert speakers and a ‘Test your protein knowledge’ quiz.
Visitors can also explore five concepts featuring Nutrilac® ProteinBoost. They include two new recipes – an ambient spoonable yoghurt, and an ambient drinking yoghurt which recently won a World Dairy Innovation award for best manufacturing/technology innovation. They demonstrate the potential for high-protein dairy products that do not require refrigeration, creating opportunities for convenience, long shelf life and easier transportation.
The three other recipe concepts are a 10 % protein ice cream, a high-protein non-fat drinking yoghurt with fruit, and a 12 % protein spoonable yoghurt.
Claus Bukbjerg Andersen, Senior Category Manager at Arla Foods Ingredients, said: The high-protein trend is as powerful as ever, but it’s evolving. Consumers now want high-quality, complete proteins – and they want them in products with masses of appeal. Our aim is to make it as easy as possible for manufacturers to meet these dual needs. The ‘Go High in Protein’ demonstrates how our Nutrilac® ProteinBoost solutions can help you overcome technical challenges and create high-protein dairy products that stand out in an increasingly crowded market.”
To sign up for the virtual protein seminar, visit https://bit.ly/47kR939
1Innova Market Insights, Trend Survey, 2024
Elopak has announced plans to build its first U.S. production plant with the latest state-of-the-art technology for better and more efficient production. The plant will produce Pure-Pak® cartons for liquid dairy, juices, plant-based products and liquid eggs. The new production facility will be located in Little Rock, Arkansas and is expected to start production in H1, 2025.
It represents a significant investment for the region of around USD 70 million including the land, the building and the equipment.
Following the investment announcement in June 2023, the company has evaluated different financing opportunities and concluded to own and fully finance the plant on the balance sheet. Hence, the nominal cost of the investment will be recognized in the balance sheet instead of the discounted value of the lease payments, increasing the reported investment by around USD 15 million. This is economically more profitable for Elopak compared to partly leasing, which was assumed in June. Further, around USD 5 million is added to the investment to further optimize the scope of the project and support further long term growth.
Since the announcement in June, we have signed contracts with some of our existing customers in the region, further strengthening the investment case.
The new plant will create more than 100 permanent jobs in the region for engineers, printers, operators, logistics specialists and other support groups.
“This is our first converting plant in the U.S. and a landmark investment for our company. North America is a key building block for our future growth and we are very excited to expand our presence in the region. I would like to thank all parties involved for enabling the next step in our North American growth journey” says Thomas Körmendi, CEO of Elopak.
ofi (olam food ingredients), a global leader in naturally good food and beverage ingredients, is celebrating the official opening of the first phase of its new, state-of-the-art dairy processing plant located in the dairy heartland of New Zealand – the Waikato region in the north island of the country. The facility will produce dairy ingredients like whole milk powder to meet growing demand, targeting key customer applications in dessert, bakery, beverage, and confectionery categories.
Sandeep Jain, Managing Director and CEO, Dairy, at ofi commented: “As we continue to expand our dairy manufacturing capabilities and innovation infrastructure, the new Tokoroa plant will become part of a global network that spans major milk consumption markets, such as South-East Asia, China, the Middle East, and Africa. The new plant also complements a suite of enhancements made to ofi’s dairy production facility and Ingredient Excellence Centre (IEC) in Johor, Malaysia back in September – which combined with our Customer Solutions Center based in Singapore, enables us to co-create bespoke food and beverage solutions for our customers. Our dairy business is well positioned to serve increased demand from our global customer base and co-create innovative applications at scale – driving additional focus on the value-added capabilities within our portfolio.”
The Tokoroa dairy ingredients forms part of ofi’s much wider natural ingredients portfolio which includes cocoa, coffee, nuts and spices, ideal combinations with dairy for customized products such as yogurts, protein bars and ready-to-drink tea, coffee and cocoa beverages. The new facility also complements ofi’s existing global footprint, driving stronger partnerships with its customers and strengthening its co-creation capabilities across the region.
The next stage of investment will see further capability added to the facility to develop high value dairy ingredients, expanding the range of ofi’s offering. It will also enable ofi to look at ways to grow the value of its milk, generating better returns for its farmer partners while delivering on its ambition to produce ingredients in a way that is socially responsible and environmentally sustainable.
Naval Sabri, Senior Vice President, Dairy, at ofi said: “The enthusiastic response we’ve received from local farmers shows that our partnership approach, and ofi’s global reputation as a leading dairy ingredients provider and innovator, has struck a chord with them.”
Azelis, a leading innovation service provider in the specialty chemicals and food ingredients industry, announced the extension of its partnership with dsm-firmenich, a leading global innovator in nutrition, health, and beauty. Effective immediately, Azelis India will be the sole distributor of dsm-firmenich’s food enzymes and cultures range throughout India, a portfolio that includes dairy cultures, dairy enzymes, dairy test kits and bakery enzymes. This agreement expands Azelis India and dsm-firmenich partnership beyond the Western region to also cover India’s Northern, Southern, and Eastern regions.
dsm-firmenich has over 150 years of expertise in innovation and a strong commitment to developing accessible solutions that serve to nourish, protect, and improve life. Thanks to their innovative portfolio, dsm-firmenich supports customers in the food & nutrition industry with ingredients that improve the taste, texture, and nutritional profile of formulations across a wide range of applications. This expanded partnership with dsm-firmenich strengthens Azelis’ lateral value chain with additional advanced solutions and enables the group to further meet market demand for sustainable formulations that enhance taste, and nutrition, and help improve life.
Christian Petersen, Regional Sales Manager Asia Pacific at dsm-firmenich, comments:
“Having partnered with Azelis India in the food market for more than a decade and pharma since 2022, we are pleased to expand that relationship to all of India for our enzymes and cultures portfolio for Food & Nutrition. This strategic decision has been made to streamline and enhance our distribution model in India to further increase our customer intimacy and strengthen our market penetration. We value Azelis as a trusted preferred partner with an excellent reputation, in-depth technical expertise and outstanding lab capabilities which are well-aligned with our technical solution-centric approach.”
Aparna Khurana, Managing Director of Azelis India, adds:
“We are thrilled about the expansion of our collaboration, a great recognition of the trust and confidence our valued principal dsm-firmenich has in our partnership. Our team has extensive knowledge of dsm-firmenich’s ingredients, and we are pleased to have the opportunity to share our expertise with a wider audience and support customers in dairy, bakery, nutrition, and more applications. Being able to exclusively offer dsm-firmenich’s advanced enzymes and cultures portfolio and nutrition solutions across India greatly expands our lateral value chain and nicely complements our current food and nutrition portfolio.”
SIG announced that it will construct a new plant in Queretaro, Mexico to serve North American markets. The plant will further expand SIG’s global production network and will enable the company to build on its strong track record of growth in North America.
Through its existing sales and service presence, SIG has been able to forge strong relationships with major dairies in Mexico, a large and growing milk market. In the USA, SIG has a well established co-manufacturing customer base and is ideally placed to serve innovative and expanding new categories.
SIG will invest around €40 million in the new plant over the period 2021-2023. The investment will cover state-of-the art production capacity for the printing, cutting and finishing of carton packs. The plant is expected to open in the first quarter of 2023 and will create around 200 jobs. It will have a highly flexible layout with a focus on ergonomics and the environment. Land and buildings will be financed through a long-term lease with an NPV of approximately €20 million.
Pectin market value is expected to surpass USD $1.8 billion by 2026, owing to a growing necessity for organic and herbal cosmetic products among the young population.
Global pectin market research studies the types of application (food & beverages: jams, dairy, non-dairy beverages, confectionery), their type (high methylated ester pectin, low methylated ester pectin, and amidated pectin), their function (gelling agents, thickener, stabilizer, fat replacer and others), regional outlook, price trends, growth potential, competitive market share and provides forecasts for 2019–2025. Global Market Insights, Inc., forecasts more than a 7.6 % CAGR for the worldwide pectin industry up to 2025.
Driven by the growing need for plant-based ingredients, the global pectin market is projected to observe significant gains over the forthcoming years. Plant-based ingredients are witnessing this upsurge since they offer immense health benefits.
Pectin products help to control blood sugar levels. These products also help to maintain proper bowel health. Owing to these multiple benefits, pectin products are best suited for nutritional needs, which is likely to foster their market share in the coming years.
Along with health concerns, rising applications of the product in confectionery fillings and sweets would possibly augment the market outlook. Additionally, the increasing usage of pectin in fruit juices and milk drinks as a stabilizer would add up to the industry’s expansion. Pectin helps decrease syneresis in marmalades and jams.
With respect to the raw material segment, apples have dominated the market outlook in recent years. The product is anticipated to witness similar growth in the forthcoming timeframe. This development is attributed to the use of apple pomace in production. Apple peel is one of the major wastes in preserve manufacturing. This peel contains about 1.3 percent of pectin. Apple peel yields more pectin in comparison to sugar beet and citrus peels. In addition, it has better gelling characteristics which further makes it a major raw material in the beverage and food market.
With reference to the geographical landscape, the Asia-Pacific pectin market is predicted to observe significant growth throughout the forthcoming years. Rapidly transforming customer lifestyles is the key factor augmenting the market outlook in the region.
In addition, the increasing demand for consumables that are organic in nature is likely to add up to the growth of the overall market trends. China would possibly lead the market expansion in the region. The country is among the largest producers of pectin. It is also observing mounting demand for health and wellness products due to the increasingly growing middle-class population. Furthermore, rising applications of citrus-based products in the cosmetics sector would further outline the market growth in the region.
Some of the key players in the pectin market includes Cargill, Dupont, Krishna Pectins Pvt Ltd, AEP Colloids, Silvateam S.p.a, CP Kelco U.S., Inc., TIC Gums, Inc. (Ingredion), Compania Espanola de Algas Marinas, S.A., Merck KGaA, Lucid Colloids Ltd., Herbstreith & Fox, Nikunj Chemicals, Pure Ingredients, Cifal Herbal Private Ltd, California Ingredients Inc, Calleva Ingredients Limited etc.
SVZ, a leading supplier of fruit and vegetable ingredients, is set to showcase an exciting new addition to its 100 % natural, sustainably sourced portfolio at FiE 2019. The company will be presenting its core offering of traceable, high-quality fruit and vegetable purees, juices and concentrates, as well as exciting new products, including authentic strawberry and sour cherry chunky purees.
Chunky puree: bringing more bite to fruit puree
As well as sampling delicious healthy honeyberry shots, visitors to SVZ’s stand at FiE 2019 can find out more about the new chunky purees: the latest addition to the company’s premium portfolio. Minimally processed and retaining pieces of real fruit within a rich, high-quality puree, the new chunky range allows dairy, ice cream and dessert producers to create 100 % natural, clean label products that offer the look, taste, and bite of authentic home-made purees. The size of the fruit pieces in new chunky purees can be individually tailored according to the customer requirements, allowing brands to create a unique texture profile. Chunky purees provide a high-quality and easy-to-use NPD ingredients solution that is ideal for transparent packaging and the ‘healthier choice’ products of premium brands.
Delivering 100 % natural, traceable ingredients
SVZ has remained committed to offering the very best in entirely natural, premium food and beverage ingredients. Today, the company’s extensive portfolio has grown to encompass everything from raspberry and haskap berry puree to cucumber and red beet juice. With its long-standing dedication to building supply-chain visibility and working with suppliers to develop more sustainable farming practices, from the very start SVZ has inspired its customers to harness the power of nature and create the healthy, traceable products consumers increasingly demand.
“The launch of new chunky purees not only opens up a host of exciting NPD possibilities for producers, but equally demonstrates our dedication to serving the ever-changing needs of our customers”, comments Johan Cerstiaens, Commercial Director at SVZ. “From healthy reformulation to minimally processed ingredients for a more authentic, ‘home made’ feel, our ingredients are designed to create exciting taste and texture experiences that satisfy the core demands of today’s consumers. Our commitment to achieving 100 % sustainable sourcing by 2030 additionally means our products don’t just look and taste good, but aim to do good as well.”
Stand 6E110, 3 – 5 December 2019, Paris, France
Customers will be offered a broad Cargill range of food ingredients and solutions for various applications to make their business a success
Caldic and Cargill have reached an agreement making Caldic Ingredients Deutschland GmbH the exclusive distribution partner for Cargill’s starches, sweeteners and texturizers for food applications in Germany and Austria. The collaboration with Cargill will expand Caldic’s offering to customers in food markets such as bakery, convenience, confectionery, dairy and beverage.
Caldic Ingredients Deutschland GmbH is part of the Caldic Group, serving the Food segment, as well as Life Science and Industrial applications. In recent years, Caldic and Cargill have successfully developed customer relationships and enabled food manufacturers to win in their markets in various other European countries.
reasons to initiate this partnership. “We are very pleased with this agreement, because Cargill and Caldic are both aiming for leadership positions in their chosen market segments”, says Stephan Neis, Managing Director of Caldic Ingredients Deutschland GmbH. “When it comes to developing innovative solutions with a service-oriented character, we are clearly aligned with Cargill. With an extended on-trend product portfolio, tailored manufacturing and state-of-the-art application services there is no doubt we will take our full-service distribution model to the next level.”
Alain Dufait, Managing Director for Cargill Starches, Sweeteners & Texturizers business in Europe, adds: “Caldic has an excellent customer approach and a strong organization in Germany. We have been impressed by Caldic’s way of developing solutions for their customers and their entrepreneurial spirit. We are enthusiastic about this partnership, because it will allow us to expand our solutions to the German and Austrian food market.”
The value of the sports nutrition market is set to grow by around 8 % per year to reach over US$17bn globally in 2021, according to Innova Market Insights’ forecasts. The mainstreaming of the market has led to a surge in interest in plant-based alternatives with the traditional dominance of whey and other dairy proteins now being challenged. In fact, over 40 % growth has been reported in new sports nutrition launches with a plant-based claim (Global, 2014-2018).
Vegan-friendly positionings were used for 6 % of global food and beverage launches recorded by Innova Market Insights in 2018, however, this rises to 14 % for sports nutrition. RTD sports drinks have an even higher level of prevalence for these positionings at 18 %.
Some of the fastest-growing plant-based proteins include soy protein isolate, pea protein, and rice protein. Moving beyond the protein arena there is also increasing use of other plant-based ingredients in sports nutrition NPD. This is led by nuts and seeds, many of which already carry an inherently healthy and nutritious image. In Europe, for example, sports nutrition launches with nuts and seeds had a CAGR of 23 % over the 2014 to 2018 period, with 2018 activity led by almonds, peanuts, and sunflower seeds.
More specialist vegan sports nutrition ranges are starting to appear, while more mainstream companies and brands are greening up their portfolios to attract those increasingly wanting to add more plant-based options to their diets.
As demand for sports nutrition products continues to soar globally, the market has become increasingly mainstream. The concept of active nutrition is developing more widely as interest spreads beyond the traditional core base of bodybuilders, endurance athletes and high- level sportsmen. The focus is increasingly shifting towards everyday health and fitness as a lifestyle choice.
Innova Market Insights data also indicates that global launch activity in sports nutrition has risen particularly strongly over the past three years, reflecting this broadening out of appeal.
Sports nutrition has always had a strong focus on protein content and this has probably grown even stronger as interest has spread into the mainstream food and beverage market. “One of the most interesting developments in protein use in recent years,” according to Lu Ann Williams, Director of Innovation at Innova Market Insights, “has been the move to alternative protein sources, with the traditional dominance of whey and other dairy proteins now being challenged by plant-based products.”
In general, the sports nutrition sector continues to develop and diversify, particularly in terms of target market, with an increasingly wide range of consumers now in its sights, including those interested in different sports, exercise regimes and levels of activity. Growing consumer interest in health, sustainability, and ethics have made plant- derived ingredients and products more popular in sports nutrition in line with the food and drinks market as a whole.
The arrival of alternatives for almost everything in food and beverages has been driven by a number of factors, but health remains the leading reason. According to Innova Market Insights, 1 in 2 US consumers report that health is a reason for buying alternatives to meat or dairy, compared with 36 % who cite variety in their diets, 18 % who are interested in novelty and 17 % in sustainability.
Alternatives to All is one of Innova Market Insights’ Top Trends for 2019, reflecting the rise of replacement foods and ingredients. Dairy alternatives have benefited particularly from this, with 18 % average annual growth in food and beverage dairy free launches (Global, CAGR 2014-2018). Lu Ann Williams, Director of Innovation at Innova Market Insights reports, “More consumers are adopting vegan or lactose free diets, while others are turning to plant-based foods for other perceived health benefits. In the western world, in particular, the market is evolving rapidly and has diversified beyond dairy alternative drinks to include alternatives to yogurt, cheese and ice cream, while at the same time, the range of ingredients used to replace milk continues to expand and advance.”
NPD in dairy alternatives has been increasing across the board, with double-digit CAGRs in launch numbers between 2013 and 2018. The market was largely pioneered by and continues to be led by beverages, with dairy alternative drinks accounting for over 7.6 % of global dairy launches recorded by Innova Market Insights in 2018. Spoonable non-dairy yogurt has also seen strongly rising levels of interest, but from a smaller base, taking its share of dairy launches from less than 0.5 % in 2012 to 1.7 % in 2018.
In the move to offer something new, an increasing variety of non-soy plant-based ingredients are appearing, including cereals such as rice, oats, and barley. We are also seeing an increase in nuts, such as almonds, hazelnuts, cashews, walnuts, and macadamias, as well as coconut and more unusual options such as lupin, hemp, and flaxseed.
Dairy alternatives are thriving across North America and Western Europe but positioning and formulation choices can vary from country to country and national knowledge remains vital to development. For example, some countries are increasingly influenced by a rise in veganism, while others are still driven primarily by lactose concerns.
Williams concludes, “Product choice has never been so diverse and innovators are continuing to deliver more complex, convenient and indulgent options. Key opportunities include the use of a wider range of plant-based ingredients, greater segmentation with the more mainstream, and the development of more indulgent options, while one of the key challenges may be improving sustainability credentials in some instances”.
Cargill has the intention to invest $150 million to construct an HM pectin production facility in South America. HM pectin is a versatile, citrus fruit-based texturizer used for jams, beverages/juices, acid dairy drinks and confectionery.
Bruce McGoogan, strategy and innovation leader for Cargill starches, sweeteners and texturizers business said, “The pectin market has seen a strong growth for several years, primarily driven by the acid dairy drink market, as well as the growing global consumer demand for label-friendly ingredients. HM pectin plays a significant role in delivering on both trends—as it is a plant-based texturizer designed for acid dairy drinks as well as for jams, beverages and confectionery products. The intention to invest in a plant in Brazil, which has an abundant citrus fruit supply, allows Cargill to deliver the pectin our customers need and consumers demand.”
The intended project is part of a comprehensive plan to strengthen Cargill’s full pectin footprint, including improvements to its existing three plants in Europe (Germany, France and Italy) and adding a new plant in Brazil to take advantage of local resources.
“Adding an industry-leading pectin asset in Brazil will complement Cargill’s existing European network and create the capacity to serve our customers around the globe with premium pectin ingredients,” said Laerte Moraes, managing director of Cargill’s starches, sweeteners and texturizers business in South America. “The intended investments also illustrate Cargill’s commitment to its employees and the economies in both Europe and Brazil through job growth and financial contributions. The intention is to start construction early 2019.”
The new innovation center will deliver cross-functional solutions with a broad ingredient portfolio to customers in Japan and Korea.
DuPont Nutrition & Health (DuPont) today announced the opening of its new innovation center in Kanagawa Prefecture, Japan, later this summer.
The Innovation & Application Center, Japan, located in Kanagawa Science Park will provide solutions and innovations for Japan- and Korean-based customers primarily in the bakery, beverage and dairy industries. The facility will allow customers to work directly with DuPont scientists to develop solutions using our wide product range of customized system blends and dietary supplements so brand owners meet the changing needs of their local markets.
The innovation center spans almost 700 square meters, making it the largest in Japan among international ingredient companies.
Several unique features and capabilities were incorporated into the facility’s design that will provide new innovations across many industries. The bakery lab features state-of-the-art equipment for making various breads and rolls, steamed cakes and doughnuts. The dairy area presents the capability to make various types of yogurts, fermented drinks, beverages and ice creams. In the micro-testing lab, stability tests can be conducted on the enumeration of probiotics with prototypes of customers’ products formulated with strains from DuPont™ Danisco®. In the dry blend lab, customized system blends can be created with a granulator, compressed tablet machine and revolving pan.
62 % increase in plant-based product claims, says Innova Market Insights
Plant-based innovation is flourishing. Growing consumer interest in health, sustainability and ethics is driving plant-derived ingredients and products into high popularity. Innova Market Insights reports that plant-based product claims increased by 62 % globally (CAGR, 2013-2017) with growth occurring on platforms such as plant proteins, active botanicals, sweeteners, herbs & seasonings and coloring foodstuffs.
“The dairy alternatives market has been a particular beneficiary of this trend,” says Lu Ann Williams, Director of Innovation at Innova Market Insights. “With the growing availability and promotion of plant-based options to traditional dairy lines, specifically milk beverages, and cultured products such as yogurt, frozen desserts and ice cream,” she states.
The dairy alternatives category was largely pioneered by and continues to be led by beverages. Global sales of dairy alternative drinks are set to reach US$16.3bn in 2018 and they accounted for over 8 % of global dairy launches recorded by Innova Market Insights in 2017, up from 7 % over 2016. Actual global launches have more than doubled over a five-year period.
Spoonable non-dairy yogurt has also seen strongly rising levels of interest, but from a smaller base, with a 48 % CAGR for the 2013-2017 period taking its share of dairy launches from less than 0.5 % in 2012 to 1.5 % in 2017. According to Innova Market Insights’ consumer research, one in three US consumers have increased their consumption of plant-based milk/yogurt in the two years to the end of 2017.
“In the move to offer something new, we are starting to see an increasing variety of non-soy plant-based ingredients, including cereals such as rice, oats and barley,” notes Williams. “We also noticed an increase in nuts, such as almonds, hazelnuts, cashews, walnuts and macadamias, as well as coconut and more unusual options such as lupin, hemp and flaxseed.”
Interest in plant-based eating is clearly reflected in developments in the meat substitutes market, where global sales are set to grow to US$4.2bn by 2022. The range of ingredients used for meat substitutes includes vegetables and grains, as well as traditional sources such as soy and specialist manufactured brands such as Quorn and Valess.
Gravitation towards plant-based diets in general, along with interest in vegan, vegetarian and flexitarian lifestyles and concerns over animal welfare, have together served to increase interest and NPD has subsequently seen an 11 % CAGR for the 2013-2017 period. Research also indicates that four in ten US consumers increased their consumption of meat substitutes/alternatives during 2017.
What will be the next hype after the turmeric latte?
Turmeric latte, or “golden milk”, was 2017’s dairy-based sensation. The golden-hued drink featured on menus of trendy cafés, and also emerged in chilled packaged formats. According to Mintel Global New Products Database (GNPD), hot beverage launches in Europe containing turmeric have more than quadrupled since 2013, growing by 359 % between 2013 and 2017.
Julia Büch, Food & Drink Analyst at Mintel, explains the trend:
“The turmeric latte is inspired by a traditional Indian remedy based on hot milk and turmeric infused with spices such as pepper, cinnamon and ginger. The drink has purported health benefits, but equally, its appeal comes from the photogenic and intense, social media-friendly colour. Milk has not traditionally been a trendy or social media-worthy drink, but colourful, flavourful offerings such as the turmeric latte could change that.”
And there is clear consumer interest in such beverages: 35 % of Germans aged 16-34 would like to see more flavoured milk launches, such as chocolate or spices. Even 77 % of German consumers aged between 35 and 54 say that they like to explore new flavours. The near future will see dairy brands looking to other new colours and textures to create the next trendy, attention- getting and ‘social media-worthy’ dairy drink.
Julia elaborates:
“Future formulations could include fizzy milk, new colors and new textures. Fizzy milk, for example, is already a popular concept in China and other parts of Asia. Colourful matcha or spirulina could be the next buzz-worthy ingredient in the West, where they are currently less known. As Mintel’s 2018 Global Food and Drink Trend ‘New Sensations’ explains, the next evolution will bring texture into the limelight. Already, we can see new foaming ingredients that infuse drinks with an unexpected texture such as the tea macchiato from China – a drink that blends tea with whipped cream cheese.”
Indeed, although matcha has been around for centuries, it is only now booming in Europe. Hot beverage launches containing matcha have increased more than tenfold in Europe between 2014 and 2017 and its vibrant green colour is already finding use in eye-catching matcha lattes. Spirulina is one of Mintel’s Trend ingredients for 2018, and is quickly becoming a trendy ingredient in the food service industry and with blue ‘mermaid lattes’ appearing across Instagram feeds.
Global launches of carbonated soft drinks with dairy ingredients, or ‘fizzy milk’, have also grown over the past five years, albeit from a small base. Asia Pacific currently accounts for 86 % of fizzy milk launched in 2017. The combination of carbonation and dairy can create a creamy texture that is rare in carbonated drinks. This novel texture innovation is primed to be ‘the next big thing’ according to Mintel research’.
FrieslandCampina announced a comprehensive reorientation in the German market. Central to the strategic refocus are considerable investments in its core brands, such as Landliebe, Tuffi and Frico, a bundling of its commercial activities in the Düsseldorf area and other measures to improve profitability. The measures include the closure of the plant in Gütersloh, which will affect 231 employees. These efforts should result in restoring the profitability within three years.
Jan Kruise, Managing Director of FrieslandCampina Germany: ‘The German market for dairy products is fragmented and characterised by fierce competition due to overcapacities. We are convinced we will be able to master these challenges by focusing on our strong brands and through strictly consumer-oriented management of our product portfolio. We are the only company with a substantial presence in all dairy categories and channels, and we will benefit from this competitive advantage by proving ourselves a preferred partner in the market in accordance with our strategy. In order to achieve our ambitious goals we will invest in our business and we will not shy away from difficult decisions that will open up the path to a successful future for the long term. We are here to stay.’
New commercial impulses from the transfer to the Düsseldorf area in North Rhine-Westphalia
North Rhine-Westphalia (NRW) has historically been a key region for FrieslandCampina. Many member farmers are based there and Tuffi is a strong local brand. Kruise: ‘By relocating and consolidating commercial functions to the Düsseldorf area we expect FrieslandCampina to benefit from the strong talent base in the area and to drive the Germany strategy more effectively.’ NRW is an important centre of consumer product and food industries. The affected commercial employees from Heilbronn and Cologne, totalling 74, will learn more about the opportunities at the new location in the context of the talks with the Works Council which are due to start very shortly. The transfer is scheduled for the second quarter of 2018. The employees have been informed about the plans today. The plants in Heilbronn, Cologne and Schefflenz as well as their workforce numbering 366, 326 and 23 respectively, will not be affected by the intended move.
Closing Gütersloh site
The closing of the site in Gütersloh is a consequence of overcapacities in the highly fragmented German market and of years of loss-making production of private label desserts that make up the major part of the Gütersloh volumes. This category will be discontinued, while other product lines will be transferred to the plants in Cologne, Heilbronn and Maasdam in the Netherlands. Gütersloh processes German milk.
The impact of the closing of the site on the available processing capacity of FrieslandCampina will be negligible. The planned closure of production in Gütersloh is scheduled for March 2019 and the employees involved were informed today. ‘This was a tough decision to make’, Kruise emphasised, ‘but previous attempts to fix the problems have failed and after careful consideration of alternative solutions the continued loss-making situation, unfortunately, has left us no other choice. We will of course very shortly enter into consultation with the employee representatives and we will do everything that is within our power to help the affected employees find new jobs elsewhere.’
