Unlocking the potential of upcycling in dairy

Sustainability has become a key factor in consumers' food and drink choices. As discussed in Mintel's 2022 Global Consumer Trend Climate Complexity, consumers are turning to brands to provide them with climate-friendly choices. Notably in Australia, 70% of consumers say that they try to act in a way that is not harmful to the environment¹ yet 29% also find it difficult to know which products are better or worse for the environment². This article delves into the potential of upcycling as consumers gravitate towards sustainable dairy consumption.

Upcycling: A Growing Trend in Food and Drink

Innovations and smart solutions have grown since Mintel identified food waste as a growing concern in the 2017 Global Food & Drink Trend Waste Not. Upcycled ingredients are part of the fight against food waste, transforming the so-called "waste" into new ingredients or value-added products. Doing so demonstrates a commitment to creating a sustainable and secure food supply system, resonating with eco-conscious consumers.

Several examples in other food and drink categories highlight the untapped opportunities for dairy products to use upcycled ingredients. Resurrection Crackers, for instance, are crafted from spent grain, a byproduct of beer brewing. Kazoo Tortilla Chips incorporate 40% upcycled corn germ that would otherwise go to waste or animal feed. 

Resurrection Crackers with spent grain from beer brewing (France); Mintel GNPD

Kazoo Restaurant Style Tortilla Chips use upcycled corn germ (US); Mintel GNPD

To win consumer trust, dairy brands need to demonstrate that upcycled products offer both superior taste and quality. Whey, a common byproduct of cheese production, presents a valuable opportunity for dairy brands. Whey can be repurposed in other product categories, such as butter or spreads, offering a unique flavour profile.

Medlee Farmhouse Butter, known for its "upcycled goodness," boasts umami notes, a slight nuttiness, and a tangy flavour. In the UK, J. Sainsbury Farmhouse Butter is traditionally made with whey cream but does not explicitly highlight its distinctive taste.

Medlee European Tradition Farmhouse Salted Butter (US); Mintel GNPD

J. Sainsbury Farmhouse Butter (UK); Mintel GNPD

This preference for novel flavours can be observed in markets like India, where 43% of consumers expressed an interest in trying ghee/butter with Indian spice-inspired flavours like Garam Masala and Jeera Masala³.

Expanding the Appeal of Buttermilk

Buttermilk, the liquid remaining after churning butter from cultured cream, is often considered a cooking ingredient in many markets. By offering a range of flavours, including fruit and confectionery-inspired varieties, buttermilk has the potential to appeal to health-conscious younger generations seeking refreshing beverages.

Müller showcases the versatility of buttermilk, providing a range of products that offer fun, nutrition, and great taste as documented in Mintel GNPD. Their limited-edition buttermilk variant with a 12% pomegranate-orange fruit component highlights the diverse opportunities for buttermilk.

Transforming 'waste' into a new ingredient can show consumers that dairy brands are committed to creating a sustainable, secure food supply system.

Pomegranate and Orange Flavoured Buttermilk with Fruit Bits (Poland); Mintel GNPD

Exploring Other Upcycled Ingredients

In Thailand, 22% of consumers say that they would be interested in food and drink products that use ingredients that would have otherwise been wasted⁴.

Japan's Famimaru Banana Milk contains 15% banana puree made from mottainai bananas, which are unripe, damaged, or overripe bananas that would have been discarded.

Famimaru Banana Milk from retailer FamilyMart (Japan); Mintel GNPD

The views expressed above are the opinion of the author, not those of Fonterra, and Fonterra is not responsible for any decisions taken in reliance on the same.