Post-pandemic interest in health and wellness bodes well for milk and flavoured milk to reinforce their positioning as sources of safe and affordable nutrition. The Covid-19 outbreak has further boosted consumer interest and awareness of food safety issues. Products that guarantee safety have an opportunity to acquire consumer trust and build loyalty for the long term.

Rushikesh Aravkar, food and drink analyst, Mintel, said, “Given the increased focus on health and wellness, dairy drinks can underscore intrinsic nutrition and cater to emerging functional claims to win over consumers seeking affordable, convenient, healthy options. Flavoured milk consumers are concerned about their sugar intake. Brands can drive increased consumption by offering lower-sugar variants targeting health-conscious using naturally sourced sugars such as jaggery, honey and dates.”

“Over the years, repeated instances of adulteration and misuse of antibiotics in the dairy industry have led consumers to be wary of the milk safety. In the wake of Covid-19, the food safety concerns have further heightened,” he added.

“In a bid to cater to the growing need for pure and safe milk, a host of small private dairy farms have mushroomed in and around metro and Tier 1 cities that offer farm-to-table milk delivery services. An increasing number of consumers are willing to loosen their purse strings for safe milk. One in three Indians strongly agree that milk with a stamp of safety and purity is worth paying more for. It is important for brands to demonstrate transparency, safety and hygiene to drive usage,”said Aravkar, following a survey conducted by Mintel.

In its report on Dairy Drinks –Indian  Consumer – 2020, Mintel indicated that consumers seek safety and purity. There is a potential to address sugar concerns and white milk warrants a stamp of safety.

The flavoured milk category has been the focus of dairy brands in last few years. According to Mintel Global New Products Database (GNPD), the number of new product launches in the flavoured milk segment has doubled between 2017 and 2019. The flavoured milk products compete with traditional and well-established segments such as carbonated soft drinks and juices. While operating in this cluttered space, the value proposition offered by flavoured milk is largely limited to ‘goodness of milk’.

Potential exists for flavoured milk brands to innovate around flavours to create stand-out not only among its peers but also within the larger beverage space. Moving beyond basic chocolate, strawberry and mango varieties to include trending ingredients and even seasonal launches can help encourage trial and consumption occasions. Functional benefits that address consumers' emerging health concerns such as immune health, eye health, weight management and stress relief will help flavoured milk brands gain traction, according to the report.

Indians seek healthy lifestyle and  intend to cut down on unhealthy elements including fat, sugar and lactose. Consumers want: food safety and transparency dairy brands can achieve this by being transparent in terms of sourcing and processing of milk.