global insight series
global insight series
Understanding consumer preference
on sugar reduction: dairy
global insight series
Mapping the future of sugared dairy –
health concerns pave the way for sugar-reduced dairy
An international survey reveals just how knowledgeable consumers are
regarding the sugar content of their dairy products and explores to what
degree this influences their buying decisions.
From flavored milks to fruit-filled yogurts, dairy can be a nutrient-rich staple
of a healthy diet or a sugar-packed calorific treat. However when it comes
to choosing dairy products; how much do consumers really know and care
about sugar content? Does the craving for a sweet taste outweigh health
and weight concerns?
Based on a consumer perception survey undertaken across five key markets
(USA, China, Brazil, Spain and Germany); this paper is the second in a series
of global insight reports focusing on sugar reduction, this time focusing
in particular on dairy. It forms part of the DSM Global Insight Series —
providing a view on consumer perceptions and an understanding of
contemporary food trends. To access previous publications please visit:
http://www.dsm.com/food/whatsnew.
Sugared dairy is on the up and China is at the forefront of demand
Delving into the consumers’ preferences around flavored milk, spoonable
yogurt and drinking-yogurt; those who took part in the survey revealed that
overall they had increased their consumption of sugared dairy products
versus three years previously (Figure 1). This was particularly apparent in
China, a key growth market for all dairy, where 50% of consumers reportedly
increased their intake of these products during the three-year period. Interest
was also strong among adults in the USA (40%) and Brazil (37%), but was
more modest in Spain (23%) and Germany (20%). This is despite growing
concerns that our increasingly sugary diet is not only to blame for a global
increase in health problems such as diabetes and obesity, but also that
these foodstuffs are gradually usurping nutritious, high-fiber options in
people’s diets. These issues were explored in greater depth in the previous
publication in our DSM Global Insight Series — ‘Understanding consumer
preference for low-calorie and low-sugar products.’ 1
Figure 1. Percentage of consumers reporting an increase in their sugared dairy consumption and that of their children (aged 15 and under)
compared to three years previously
67%
56%
51%
50%
43%
40%
37%
34%
23%
20%
Adults
Children (aged
15 and under)
China
1
USA
Brazil
Spain
Germany
Available from: http://www.dsm.com/content/dam/dsm/foodandbeverages/en_US/documents/dsm_global_insights_sugar_reduction_paper_1.pdf (Accessed August 2015)
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Younger consumers fuelling a sweeter future for sugared dairy
When quizzed about the food habits of their children (aged 15 and under),
those surveyed reported dramatic increases in the consumption of sugared
dairy; ranging from 34% in Germany to a whopping 67% in China (Figure 1).
Respondents in the USA, Brazil and Spain also noted sizeable increases
of 56%, 51% and 43%, respectively. This may be explained by the fact that
even with the addition of sugar, dairy products are generally perceived
as a nutritious option for growing children and preferable to other snack
foods such as potato chips and confectionary.
This growth is expected to continue in the future, with all those surveyed
expecting to buy more of these products for their children over the next
three years (Figure 2).
Figure 2. Percentage of consumers reporting a predicted increase in their sugared dairy consumption and that of their children (aged 15 and under)
over the next three years
Germany
12% Adults
28% Children
USA
32% Adults
54% Children
Spain
20% Adults
37% Children
China
49% Adults
68% Children
Brazil
32% Adults
43% Children
Insight
While adults in growing markets such as China show a sustained interest in sugared dairy,
children are the biggest drivers of its consumption worldwide and this growth is predicted to
continue over the next three years. This is despite widening concerns over the ever more
dominant role of sugar in people’s diets, particularly in children, who tend to lay the foundations
of their adult taste preferences in early life.
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global insight series
Consumers still prefer sugared over reduced and no sugar options
Despite the ever increasing number of dairy choices on the market, from
luxurious yogurts to exotically flavored milk drinks; ‘plain’ products (i.e.
those containing no added fruit/flavoring/sugar/sweeteners), remain the
first choice for many (Figure 3).
This is the case in Germany (45%) and noticeably so in China, where they
are favored by a substantial 78% of those surveyed. Reasons for this are
likely cultural as well as taste-based. Many consumers still opt for plain
dairy products as these options do not contain added sugar and there is a
wide choice of good tasting, healthy dairy products available.
Regular sugared or flavored products are preferred in the USA (41%) and
the emergent yogurt market of Brazil (44%), perhaps reflecting a sweeter
tooth in these countries and a penchant for using yogurt as part of their
first meal of the day as reported in a previous DSM Global Insights report
– Differences in regional yogurt consumption provide new opportunities for
dairy companies to bring more yogurt varieties to a growing global market 2.
Greek-style yogurt is particularly popular in both markets, with consumers
preferring the thick and creamy texture over the thinner consistency of
traditional yogurt.
The recent run-away success of Greek-style yogurt has led dairy makers to
actively search for a point of difference which they can achieve by bringing
new innovative products to market. One approach is to reposition other
‘naturally functional’ dairy products to a new health-conscious audience.
Skyr (Icelandic yogurt) is one such example. While technically a soft
cheese, it is marketed as a yogurt and has a similarly creamy (yet thicker)
texture as Greek-style yogurt. While also boasting high amounts of protein
and a relatively low calorie count, it has the additional benefit of containing
health-promoting probiotics. Kefir, a fermented, yogurt-like drink popular
in Eastern Europe, is also moving from the shelves of niche health food
stores to major supermarkets, with marketing centered on not only its
intrinsic health benefits (high protein; healthy probiotics), but also the
sense of ‘wellbeing’ it provides. In fact, the word kefir is thought to be derived from the Turkish word ‘keyif’ which in essence means ‘feeling good’.
Figure 3. Preferred type of dairy product
Plain (natural: no added fruit/flavor/sugar/sweeteners)
46%
Regular (sugared or flavored) variety
33%
Reduced sugar variety (e.g. 30% less sugar)
No added sugar variety
(can include sweeteners or natural sugar from fruit )
2
12%
9%
Available at: http://www.dsm.com/markets/foodandbeverages/en_US/news-insights/campaigns/patterns-in-yogurt-consumption.html (Accessed August 2015)
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Looking at those consumers who prefer purchasing sugar reduced dairy
foods (12%) or no added sugar (9%) over plain or regular types (Figure 3), it
is clear that there is room for this market to grow. The highest consumption
of sugar reduced dairy was seen in Brazil and Spain with 27% and 32%,
respectively preferring these options. Reasons for choosing a sugar reduced
dairy food are similar between the markets surveyed and include: to lose
weight or manage my weight (avoid overweight/obesity), Health related
reasons (like avoiding diabetes) and to become more fit throughout the
day/feel less tired.
Insight
The sugar-reduced dairy market has the potential to further grow. Consumer reasons for purchasing a dairy food lower in sugar are consistent across markets and mirror the reasons seen
behind the global push to reduce sugar in other foods and beverages such as carbonated soda.
As more of these products come to the forefront there is every reason to expect they will be successful if marketed effectively and taste just as good (or better) than conventional dairy foods.
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global insight series
Sugar in dairy:
Do health and weight concerns translate into buying behavior?
As a whole, consumers reported feeling concerned with their dietary health,
and feeling heavily influenced by diet-related news reports and social media
posts. However these opinions do not appear to lead to an alteration in
people’s eating habits. ‘Millennials’ in particular have been found to have
very informed attitudes on health and wellness, which are not reflected in
their overall purchasing behavior.3
While the health and wellness ramifications of sugar are broadly under­
stood, this didn’t necessarily translate into better dietary choices amongst
those surveyed. Despite close to two thirds of the respondents’ claiming
that they cared about their overall sugar intake (64%) and that the sugar
content of their dairy purchases was a concern (62% disagreed with the
statement: I am not concerned about the amount of sugar in dairy) (Figure 4),
consumption of sugared dairy remains robust. Eighty percent of respondents
also agreed that dairy foods with low or reduced sugar were better for
their health. Perhaps, underlining this disconnect is that fact that similar
numbers of consumers agreed (48%) that dairy was healthy irrespective
of the sugar content to those that disagreed (40%) with the statement.
Figure 4. Percentage of respondents agreeing or disagreeing with statement concerning sugar and dairy foods.
Dairy with low or reduced sugar is better for my health
11%
80%
21%
I am more concerned about the ingredients in dairy
than I was 3 years ago
I pay more attention to the amount of sugar added
in a dairy product than I did 3 years ago
24%
Dairy does not need additional sugay
24%
10%
74%
70%
6%
60%
48%
Dairy is healthy anyway no matter the amount of sugar
it contains
5%
16%
40%
12%
I am not concerned about the amount of sugar in dairy
62%
33%
5%
I do not care about my sugar intake
64%
31%
5%
DisagreeAgreeUnsure
When those surveyed read the nutritional label of dairy products, calories/
energy (68%), and fat content (65%) were more frequently considered
than carbohydrates (43%). Even then, carbohydrates remain a somewhat
abstract concept for consumers compared with fat; with many consumers
understandably confused about the differences between the sugars naturally
contained in milk and any added sugars used to modify the taste of the
food. Additionally, labelling certain dairy foods as ‘sugar-reduced’ may
lead consumers to think they are less flavorsome which is why ‘lower
calorie’ tends to be a more acceptable alternative.
3
Nonetheless there is an ongoing sea change taking place in the popular
press, with sugar rapidly replacing fat as ‘enemy number one’ in the eyes
of many; coupled with the rehabilitation of fat as an important component
of a balanced diet. As consumers’ dietary knowledge increases it’s only
natural that sugar-reduced and no added sugar dairy will become much
more desirable, and the messaging around low-fat products increasingly
less convincing. But will this increased awareness translate into increased
sales of sugar-reduced and no added sugar dairy options?
Available at: http://www.foodnavigator-usa.com/Product-innovations/WHITE-PAPER-Simplifying-Sweetness (Accessed August 2015)
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Insight
While fat/calorie content is the main nutritional deciding factor for consumers, the sugar-content of dairy (and all food stuffs) is an escalating concern. As more and more research confirms
the negligible ill effects of dairy fat and, more importantly, that low/no-fat dairy products
have little health benefit; sugar-reduced dairy products will be well placed to fill the ‘healthier
choice’ gap.
The next steps for sugar-reduced dairy
While sugared dairy remains the first choice for many consumers in this
survey, it is also clear that substantial concerns exist regarding the addedsugar content of their everyday dairy foods. As the damaging impact of
sugar on global health becomes increasingly evident, consumers are
seeking out alternative choices in the dairy aisles, with the majority of
participants in the survey strongly perceiving dairy with lower amounts of
sugar as healthier. Furthermore, government and public health campaigners
are placing ever more pressure on manufacturers to take more responsibility
for reducing the consumption and sugar content of their foods.
With all this in mind, how can manufacturers respond and create highly
desirable sugar-reduced or no sugar alternatives that are both tasty and
allay these wider health concerns? DSM will be investigating consumer
preferences around sugar-reduced dairy – including their feelings around
both natural and artificial sweeteners – in their second Global Insight
Series report on sugar-reduced dairy foods and tries to answer what would
increase the consumption of sugar reduced dairy – ‘Finding the sweet
spot for dairy’ which will be available in October 2015.
Survey overview
In May 2015, DSM conducted an international perception survey on sugar-added dairy products (flavored milk, spoonable fruited/flavored yogurt,
drinking yogurt) amongst 5,143 men and women (aged brackets: 18–35;
36–50; 50+) in USA, China, Brazil, Spain and Germany. Results are reported at the 95% confidence level with a margin of error of = + / – 3 %.
For more information, contact us now:
[email protected] l www.dsm.com/food
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global insight series
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