This report reviews functional dairy ingredients and the products they are used in, and considers the impact of major consumer health trends, market dynamics, and the status of legislation such as EFSA's Nutrition and Health Claims Regulation on dairy innovation in the functional space. It contains case studies and product examples to forecast what will drive success in functional dairy.
A shift in the underlying formulation and mix of dairy is due to greater advances food technology and is resulting in a greater ability to target not only different demographic groups by age and gender, but also by ethnicity and unique taste trends. Both the ‘add in and take out' trend is going to continue across the functional dairy market.
Many factors can impact the success or failure of functional dairy products including consumer understanding of a product's benefits and mechanism of action, price, ingredients, its macronutrient composition, and unlike dietary supplements its taste, texture and food like qualities
The future will be challenging on the regulatory front for functional dairy ingredients and products in the EU and US - if not globally - due to the new Novel Dietary Ingredient guidance in the US and Nutritional Health Claims Regulation becoming law in the EU, as it becomes harder to make claims and the burden of proof is placed on manufacturers.
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