All data included in the following category breakdown and subsequent charts were provided by Circana, a Chicago-based market research firm, and cover the previous 52-week period ending July 14, 2024.
The cultured dairy products category includes yogurt, cottage cheese, sour cream, cream cheese, dips and a few other novel fermented dairy foods. Some of these products are positioned as cooking ingredients and condiments. Many are used as snacks.
Refrigerated dairy-based dips — made with cream cheese, sour cream or both — have been booming, as they complement the consumer snacking trend that shows no signs of slowing. These dips are marketed in locations throughout the supermarket, including the self-service deli, refrigerated dairy and produce departments.
Marie’s Fresh Produce Dips, for example, can be found near the brand’s refrigerated, spoonable salad dressings. They are described as being thicker and more scoopable than the dressings. Varieties are chunky blue cheese, creamy ranch, southwest ranch and everything bagel. The dip tribute to the trending everything bagel flavor craze features a fusion of sesame seeds, garlic, onion and a dash of salt in each creamy bite.
“At Marie’s, we are passionate about creating high quality dips that inspire moments of joy and satisfaction,” said Kelly Hansen, vice president of marketing for West Madison Foods, Chicago, which purchased Marie’s last year. “With our premium line of Fresh Produce Dips, we’re excited to grow Marie’s presence in the refrigerated produce section and offer new and existing fans a diverse range of flavors to enjoy with their favorite snacks, appetizers or meals.”
Embracing this snacking trend, Danone North America, Broomfield, Colo., rolled out REMIX, a range of new yogurt products with bold mix-ins. The collection spans three of Danone’s brands — Light + Fit, Oikos and Too Good & Co. — so there are options with less fat, high protein and lower sugar.
“It’s no secret that snacking is increasing for busy Americans, and we’ve taken notice,” said Rafael Acevedo, president and general manager. “We want snacking to feel anything but routine, and at Danone we are positioned to give consumers yogurt options that work for them on all fronts, for their tastebuds, their nutrition goals and their schedules.”
Sally Lyons Wyatt, executive vice president and practice leader, Circana, said, “Yogurt is really filling the opportunities for consumers on their well being journey,” when she spoke at the annual Sweets & Snacks Expo.
Yogurt pouches have long been a choice snack for toddlers. Marketers are getting more creative with their formulations to gain share. Hain Celestial, Hoboken, NJ, for example, now offers Earth’s Best Organic Support Smoothies. These new yogurt smoothies are designed with nutrients that provide functional benefits. Some varieties even sneak in veggies. The “Bone Support” contains pear, mango and carrot, and is an excellent source of calcium and vitamin D, while “Digestive Support” contains banana, pumpkin and raisin, and is an excellent source of fiber.
Springfield Creamery, Eugene, Ore., entered the kids’ pouch space, too, with Nancy’s Organic Whole Milk Yogurt Pouches. The new 3.5 oz pouches contain five strains of live cultures, including billions of live probiotics, along with prebiotic plant fibers. Varieties are blueberry spinach, raspberry rhubarb and strawberry banana.
Plus, TikTok did it once again for dairy. This time for cottage cheese. Interestingly, this comes at a time when there’s been almost no innovation in the category. It’s just mainstream cottage cheese — whole milk and low fat — that is booming.
Circana data showed that unit sales of private-label cottage cheese were up 5.7% in 2023, as compared to the previous year. Branded units sales were up 11.7%.
“Cottage cheese is seeing strong growth for both brands and private label as TikTok lifted the entire category,” said John Crawford, senior vice president of client insights, dairy, Circana. “Forty-five percent of households buy cottage cheese.”
From adding it to avocado toast to churning it into “ice cream,” cottage cheese has become “the” high-protein base for getting creative in the kitchen. It also happens to be one of the only dairy categories in which there are no plant-based alternatives.
While there are plant-based alternatives in the yogurt department, only real dairy owns a qualified health claim, which FDA approved in March in response to a petition submitted by Danone North America nearly five years ago. Two versions of the new claim are permitted by FDA. They are: “Eating yogurt regularly (at least three servings per week) may reduce the risk of Type 2 diabetes, according to limited scientific evidence,” and “Eating yogurt regularly may reduce the risk of Type 2 diabetes. FDA has concluded there is limited information supporting this claim.”
It has yet to be used on any retail packaged yogurt, but will likely start appearing later this year. Diabetes is one of the top 10 causes of death in the US, impacting more than 37 million, with 1.4 million new cases diagnosed every year. The claim may be a gamechanger with how dairy yogurt is marketed.
Category innovations
Superior Foods Company, a co-packer of innovative dairy dips and spreads, has a new Lemon Blueberry Bliss dairy dip. On the savory side, there’s new pepperoni pizza dip.
To enable lactose sensitive consumers to enjoy cultured dairy, Prairie Farms now offers lactose-free cottage cheese and sour cream options in 16 oz tubs.
Tillamook County Creamery Association entered the brick cream cheese category with an extra creamy product, formulated with more milk fat than typical cream cheese.
Straus Family Creamery launched plain and blueberry organic kefir. It is packaged in the brand’s iconic reusable glass bottles to support the mission-driven company’s 30-year tradition of climate resilient practices, sustainable organic farming and zero-waste goals.