August 8, 2024 – In North America, milk is a staple beverage due to its rich nutritional profile, providing essential vitamins and minerals such as calcium and protein that support overall health. Innova’s 360 research into milk trends helps to dive into the milk market, exploring consumer preferences, top brands, and the innovations driving this dynamic category across the US and Canada.
Milk Product Launch and Sales Trends
North America is the smallest region for milk and dairy launches over the past year, yet there has been a 3% rise in milk sales value over the past five years. Milk trends research shows that unflavored milk is the leading subcategory in milk launches, followed by flavored milk.
Canada has experienced a 5% growth in milk launches over the past three years, offering wider choices such as Canadian milk, a range of partly skimmed milk with less fat content, and milk drinks in various fruit flavors and blends.
Milk trends research reveals that in North America, the United States leads in milk sales value, averaging 79% of sales over the past five years. Adding significance to the milk market are products targeting children (5-12 years), with options in spouted pouches and protein-dense ultra-filtered whole milk in multiple flavors. This indicates a rising demand for diverse milk products in the region.
Flavored Milk Trends
Over the past three years, the launch rates of flavored milk have fluctuated, with a slight increase in 2024. Creamy preparations and indulgent flavors like berry fruits-strawberry, blueberry, and red raspberry, as well as cross-category flavor innovations such as cheesecake, cookies, Oreo, and shortcake, drive these launches.
Abbott leads the flavored milk launches in North America, supported by its high-protein nutrition shakes available in different flavors, including brown milk chocolate, mocha coffee, and fruits. This highlights a growing consumer interest in both traditional and novel flavored milk options, reflecting a demand for indulgence and variety in their beverage choices.
Unflavored Milk Trends
Milk trends research displays that unflavored milk is the top subcategory, accounting for 64% and 60% of launches in Canada and the United States, respectively, over the past four years. 1 in 5 consumers in the US and Canada look for flavorless and bland milk varieties. This preference is reflected in the 5% CAGR growth in unflavored milk offerings across North America during the same period.
Products claiming 100% real milk offer a pure and natural experience. For those seeking specific fat content, choices range from creamy to lighter options. Even powdered milk varieties, including non-fat dry milk powder and goat milk powder, provide convenient and versatile choices, driving unflavored milk launches.
Food Lion has been the leading company in unflavored milk launches over the past year, driven by ultra pasteurized milk ranges, diverse fat reduced options, and whole milk launches.
Claims and Positionings Milk Trends
In the North American milk market, the top 5 claims are source of protein, low/no/reduced fat, organic, lactose free, and gluten free. These claims vary by country; in Canada, the top claim is source of protein, while in the United States, low, no, reduced fat takes the lead.
Milk trends research shows that apart from these top 5, other claims are also growing across the region. In Canada, vitamin and mineral fortifications and no additives or preservatives are on the rise. In the United States, claims related to halal, bone health, and brain health are gaining popularity. This highlights the increasing consumer focus on health and wellness, driving brands to innovate and cater to specific nutritional needs and preferences across different regions in North America.
Milk Flavor Trends
The flavor landscape of milk in North America is evolving, reflecting diverse consumer preferences and innovation within the market. Milk chocolate is the top flavor, followed by strawberry, vanilla, banana, and mango.
In the past year, there has been a rise in the popularity of mocha coffee and blueberry flavors, which are gaining strong traction. These emerging flavors indicate an interest in more new and varied taste options in the milk category in North America.
What’s Next in Milk Trends?
Milk trends research shows that the North American milk market is evolving rapidly, with unflavored milk leading in launches. This highlights opportunities for brands to innovate and expand their offerings by launching several types of processed milk to create wider options and ultra-pasteurized milk fortified with vitamins A and D.
Consumers are increasingly focusing on health, preferring products that have free from claims. Brands can leverage this trend by targeting allergen-sensitive consumers with lactose free and gluten free options. Additionally, they can focus on including benefits like bone health through vitamin D and calcium, digestive health backed by formulations with prebiotics, and immune health aided with vitamin C.
Consumer preferences for clean labels and indulgent flavors are driving growth and diversification in the milk market. Brands are likely to develop more indulgent flavor profiles and cross-category flavor innovations to enhance taste experiences. As the market evolves, brands are likely to continue exploring new formulations and health claims to meet the dynamic needs of health-conscious consumers.
This article is based on our report, “Overview of Milk in US & Canada.” If you are interested in reading this report, feel free to request a demo.
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