Dairy Processing - December 2021 - 68

ASSOCIATION INSIGHTS
NEXT GEN
consumers
A new checkoff program focuses on benefits of
dairy that have what Gen Z is looking for.
by Anne Warden | Dairy Management Inc.
D
id you catch some recent media stories that addressed
a coffee shop trend? Young consumers are flaunting
their whole milk coffee orders on social media.
Yes, whole milk, sometimes unfairly disparaged by some
consumers, is now in vogue. And it is being embraced by
segments of the population who are critical to dairy's future:
Millennials and Gen Z.
This perfectly illustrates the ever-changing world of
consumer trends. Just when you think something is old, it's
new again.
Understanding consumer trends is a priority for Dairy
Management Inc. (DMI), which manages the national
dairy checkoff on behalf of 31,000 dairy farm families and
importers. Our mission is to drive sales and trust and support
a secure future for those who fund us.
The consumer is our bullseye, which is why we study their
habits. If we don't know how, where and why they consume
dairy, then our chances for success are lessened.
The good news is most people love dairy. One of the most
telling proof points is USDA's annual per capita figure, which
continues to increase. The US Department of Agriculture's
(USDA) recent report shows Americans consumed 655 lbs
of dairy in 2020 on a milkfat milk equivalent basis, up 3 lbs
from 2019.
When the dairy checkoff was founded in 1983, per capita
was 573 lbs so that is an 82-lb increase that checkoff-led
efforts have helped to increase through strategies, such as
working with foodservice, retail and CPG leaders, here and
around the world.
68 DEC 2021 | DAIRYPROCESSING.COM
While this is good news for farmers and dairy companies,
fluid milk consumption is steadily declining, particularly
among consumers younger than 40. This segment grew up
with an overwhelming number of beverage options, plus the
onset of social media and the internet, tools many have never
lived without.
The checkoff's key target is Gen Z (ages 10 to 23), who
present a golden opportunity, and for good reason. They
constitute 20% of the population and will be the parents of
tomorrow, if some already aren't today. They have about
$100 billion in purchasing power, which doesn't account for
the influence they have on their parents when it comes to
products brought into the home.
HIGHER STANDARDS
Gen Z is passionate about their causes, such as the
environment and animal care, and they expect brands
and industries to feel the same way. Dairy's sustainability
efforts are critical to this generation and they expect us
to continue making progress. Gen Z will purchase other
products if they believe brands do not support their
values.
Checkoff research reveals further Gen Z traits:
* Overall, they are skeptical by nature and need
more convincing of dairy's health benefits and
responsible production methods. Gen Z will require
different messaging than Millennials, who generally
have a favorable view toward dairy and often just
seek reassurance.
Anne Warden, executive vice
president, strategic integration,
Dairy Management Inc.
http://www.DAIRYPROCESSING.COM
Dairy Processing - December 2021

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