The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Global food-tech accelerator Eatable Adventures has unveiled its latest report titled The Future of Dairy, which examines the transformative impact of technological innovations and open collaboration in reshaping the global dairy industry.

This comprehensive study highlights the industry's shift towards sustainability, hybrid products and strategic partnerships, gathering insights from a cohort of medium to large companies across Europe, Latin America and Asia.

According to IMARC Group, the dairy sector, valued at $944 billion in 2023, is projected to grow to $1.3 trillion by 2030. With over 80% of the global population consuming dairy, the industry is facing mounting challenges including climate change, labour shortages and fluctuating prices.

The report underscores the necessity for dairy manufacturers to adopt innovative strategies to maintain competitiveness and sustainability amid evolving consumer demands.

Plant forward

A significant focus of the report is the rise of plant-based dairy alternatives, which have gained mainstream acceptance.

The global plant-based dairy market, valued at $12.6 billion in 2023, is expected to double by 2030, growing at a CAGR of nearly 11%. Despite this growth, traditional dairy products remain dominant, with consumers increasingly experimenting with plant-based options since 2020.

Investment in plant-based dairy peaked in 2020-2021 but saw a steep decline of over 90% in the following years. Nonetheless, the category is maturing, with a shift towards later-stage investments aimed at scaling technologies and improving product quality.

Innovations such as precision fermentation and cell-based methodologies are gaining traction, promising to revolutionise dairy production.

Open innovation: A collaborative approach

The report emphasises the critical role of open innovation in addressing the dairy industry's challenges. Industry leaders indicate that collaboration between corporations, start-ups and research institutions is essential for driving technological advancements and improving sustainability practices.

José Luis Cabañero, founder and CEO of Eatable Adventures, said: "These partnerships enable start-ups to scale faster while providing corporations with efficient access to new technologies. Success in the sector depends on the ability to scale emerging technologies, achieve price parity and meet evolving market demands.”

He continued: “This report outlines our vision for a technology-driven future for the food sector, where innovation not only positively impacts the planet but also promotes industry best practices and benefits consumers. Industry leaders must actively shape the future rather than merely observe it".

"We call on all stakeholders involved in this transformation to adopt forward-thinking practices and integrate cutting-edge technologies that enhance sustainability and efficiency.”

However, aligning the interests of diverse stakeholders remains a challenge. Differences in organisational culture, scale and strategic priorities can hinder collaboration. The report advocates for a proactive approach to foster partnerships that can lead to innovative solutions and enhance resilience.

Consumer trends and market dynamics

Consumer behavior is identified as a primary concern for the dairy sector, particularly among younger generations who prioritise sustainability and health. Rising production costs have prompted many consumers to opt for more affordable white-label products.

As the industry grapples with these shifts, dairy manufacturers must adapt their offerings to meet changing preferences.

The report also highlights the importance of addressing environmental concerns, with many companies prioritising the reduction of greenhouse gas emissions and the development of sustainable practices. The dairy sector's commitment to these goals is vital for maintaining consumer trust and ensuring long-term viability.

Embracing a tech-driven future

The Future of Dairy report outlines a vision for a technology-driven future in the dairy sector, where innovation not only enhances sustainability but also promotes industry best practices.

The report calls on all stakeholders to actively shape the future of dairy by adopting forward-thinking practices and integrating cutting-edge technologies.