More and more consumers are snubbing the regular or non-organic dairy products for reasons ranging from changing lifestyles, switching to a healthy diet to concerns regarding contaminants in conventional food products. Dairy products made from organic milk eliminates the use of artificial hormones, antibiotics, and chemicals at any stage of production.
Many of the top dairy companies are renovating their farms to comply with the guidelines as quoted by several regulatory bodies that define what makes the dairy products organic. It is usually a three-year procedure and is quite expensive. Dairy companies are doing this mainly because consumers are demanding foods without genetically modified components. The healthy organic milk products are positioned as a premium product, as the consumers perceive them to be healthier and safer than non-organic variants.
Substitutes and stringent approval procedures could play spoilsport
Apart from the health and wellness benefits, many consumers consider price as a prime factor when purchasing dairy products. Since organic products are priced higher, consumers prefer to buy regular products that come at a much cheaper cost and claim to offer similar features.
While getting certified as ‘organic’ entails huge costs, the procedures and guidelines issued by government bodies makes the certification process even more strict and tough to comply with. In fact, even consumers are affected by this, as these stipulations lead to the high pricing of organic dairy products.
Awareness of the organic advantage fuels the market growth
Today, consumers want food and beverages that are beneficial for their health, and they are likely to pay more for such products. Already, consumers prefer organic dairy products for their several nutritional advantages, including higher levels of omega-3 fatty acids, Conjugated Linoleic Acid (CLA), antioxidants, and vitamins compared to conventional milk. To drive growth, vendors must propagate these facts amongst the target demographic. Thankfully, the tide seems to be shifting this way already!
The millennial consumers are aware of the multiple health benefits of organic dairy products and are driving the massive demand for the same. In countries like the US, Germany, and the UK, this group of consumers are increasingly adopting organic milk consumption over its traditional counterpart.
Market insights help vendors strategize better
The evolving economic conditions, personal nutritional preferences, spending patterns, and improving health consciousness amongst the target audience has already rendered the global organic dairy products industry a strong contender in its sphere. Add to this the comprehensive market insight offered by industry experts at Technavio, and the vendors are equipped with the dual advantage of opportunity and a strong marketing strategy to exploit said opportunity. Source the advantage by sampling the report for free, via the links listed herein.
