Guest Columns

Perspective:
Industry Issues

Drivers for growth

Veronique Lagrange

Veronique Lagrange is director of the California Dairy Innovation Center, which brings together producers, processors and educators around a common set of innovation and productivity goals and coordinates pre-competitive research projects and educational training. She contributes this column exclusively for Cheese Market News®.

Should we be laser-focused on consumers and demographics?
In our business, we tend to look at growth pockets. Large-scale demographic trends — like these three examples below — also offer guidance for our innovation efforts.

• 63 million Hispanic consumers

Listening in on a recent session of the California Milk Advisory Board’s University Entrepreneurship Program (supported by Dairy Management Inc.) I was amazed by the insight and creativity of the students who are just getting started on their careers. This program, launched at Fresno State University, brings together student groups from food science and business school departments as part of a dairy product innovation contest. As we discussed an endless variety of new ideas, I was also intrigued to hear mentions of authentic, heritage-based and genuine products, rooted in culture, from these students who are mostly Hispanic and Latino.
The Hispanic or Latino population in California represents approximately 39% of the state’s total population, based on the most recent estimates. As of 2023, California’s Hispanic community constitutes around 15 million people in the state. Nationwide, this community represents about 63 million out of the roughly 331 million people in the United States. While it may seem like California’s “mainstream” retailers feature a wide variety of choices for Hispanic-style cheeses, desserts and beverages, based on the feedback from these students, we are not offering the dairy products they wish they and their families could conveniently find on store shelves. Contrast this with the many offerings of Greek yogurts, French cheeses and other European-inspired dairy products — are we missing the mark?

This demographic will play a significant role in shaping consumer trends in the dairy sector, where preferences for culturally relevant products like Hispanic-style desserts and dairy beverages are bound to spur dairy innovation beyond California and Southwestern borders. Yet, we find few R&D and product developers of Latino heritage working at our non-Hispanic dairy companies, few food science classes focused on this sector and too few mentors knowledgeable to help processors scale up production of many products that still are considered artisanal. A challenge to work on.

• 68 million Gen Z

Now let’s think of the Gen Z consumers. Approximately 19% of Gen Z in the U.S. identify as vegetarian, according to a report from the International Food Information Council (IFIC). Gen Z’s increased focus on environmental sustainability and health-conscious eating habits contributes to this trend. And no, these are not all “gamers”! Many learned to cook during the pandemic, as the success of myriad cooking shows and influencers can attest. Gen Z consumers don’t like labels and are exploring flexitarian diets, where they reduce meat consumption without fully eliminating it, but also seek less processed options for high-protein sources and global recipes/international options for their endless curiosity.

Obviously, dairy products can be part of the solution: We have “cooking,” acid-set cheeses such as Paneer, Haloumi, Feta, Queso Fresco — even cottage cheese and Ricotta, which are perfectly suited for this opportunity. Production capacity on a large scale may still be constrained for some of these products, but even more so is our ability to innovate along these product lines (flavors, packaging, sizes, eating occasions) and position them as meat alternatives outside of the dairy case where Gen Z will shop.

• 71 million boomers

Let’s not forget our oldest population group, which refuses to conform to aging trends of the past. Boomers ARE also tomorrow’s consumers. As of recent estimates, Baby Boomers — those born between 1946 and 1964 — make up around 71.6 million people in the U.S., over 21%. In terms of life expectancy, Baby Boomers are projected to live longer than previous generations due to advances in health care, nutrition and living conditions. The average life expectancy for this group is approximately 84 years for women and 81 years for men — meaning a 64-year-old consumer is expected to be a dairy consumer for at least a couple more decades. Boomers’ experience of the benefits of dairy nutrients to address sarcopenia, loss of muscle mass or bone density is bound to inspire the generations that follow. But more striking is emerging science focused on milk fat and brain health.

In addition to the benefits of components like omega-3s, vitamin D and butyrate found in dairy fat, other components such as the milk fat globule membrane (MFGM) show promise. While much research on MFGM has focused on its benefits in infant nutrition (supporting brain development and cognitive function), there is increasing evidence that these benefits extend to adults and the elderly. The membrane contains molecules and nutrients that mimic those found in human breast milk, suggesting long-term cognitive benefits throughout life, including those at risk of age-related cognitive decline.

MFGM is a key component that has shown promising effects in supporting brain health and reducing the risk of dementia. The MFGM contains phospholipids and sphingolipids, both of which are critical for maintaining the structure and function of cell membranes in the brain. Recent studies suggest that phospholipids from MFGM can help preserve cognitive function by supporting the health and integrity of brain cells, which may help protect against cognitive impairment.

It is projected that the number of people living with dementia could rise as the population of Boomers grows older, and estimates suggest that about 28 million Boomers could develop Alzheimer’s or another form of dementia in the coming decades. This line of research is significant as it has the potential to create new demand for high-value, dairy fat-based ingredients and products currently largely underdeveloped and valued.

Strengthening our research investments in this “new gold” is a priority.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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