From healthy probiotic cheeses in Brazil to mamey sapote-flavored drinking yogurt in Mexico, we take a look at some of the products tapping into Latin America's top dairy trends, according to Zenith Global's Dairy Innovation Report 2019.
From healthy probiotic cheeses in Brazil to mamey sapote-flavored drinking yogurt in Mexico, we take a look at some of the products tapping into Latin America's top dairy trends, according to Zenith Global's Dairy Innovation Report 2019.
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“[Brazilian consumers] are increasingly looking to make smarter food and beverages choices that can contribute to their overall well-being, increasingly focusing on wellness claims," insight analyst at Zenith Global, Louisa Sabin, told FoodNavigator-LATAM.
A survey conducted by New Nutrition Business this year found that just under 50% of Brazilians surveyed thought dairy products were good for digestive health.
So what kind of health and wellness claims work well for dairy?
In Brazil, it could mean lactose-free products or products that contain added probiotics for digestive health, Sapin said.
Both lactose-free and probiotic cheeses are gaining in popularity within all cheese sub-categories: sliced, cubed, dips, spreads and soft cheese, said Zenith Global.
Manufacturers can choose from three probiotic strains that have been approved for certain health claims by the Brazilian Health Regulatory Agency, ANVISA: Bacillus coagulants GBI-30, Bifidobacterium lactis HN019 and Lactobacillus reuteris DSM 17938.
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Low-fat products also appeal to healthy-minded consumers.
“With rising obesity levels and the increasing concern among Brazilians about consuming healthier products, the cheese category has the potential to tap into this demand with new lighter versions.”
Polenguinho's turkey-flavored cheese snack range (made by Polenghi, a sister company of France's Groupe Savencia Fromage & Dairy) includes a light version that contains 30% fewer calories than the original.
Meanwhile, Danone-owned La Serenísima recently added low- and no-fat milks to its range sold in Argentina, Uruguay, Paraguay and Bolivia.
“Brazil’s economic recovery in 2017 and 2018 fuelled further growth in product innovation with consumers with more disposable income willing to pay a premium [...] for more sophisticated and higher quality products,” said Sabin.
The country's Le Sorbet brand leverages this well and is driving added-value sales as consumers pay more for indulgent offerings, according to Zenith.
Meanwhile, in Mexico, clean label claims can also offer a strategy to premiumization, a path that Mexican dairy giant Grupo Lala has been pursuing.
Speaking about the company’s Lala 100 range of high-protein and lactose-free milks, head of operations David Resgado told us: “This is a product that we brought to the consumer and ‘broke’ the commodity [status] of milk.”
"If milk costs 16 or 17 pesos, we can sell this for 22 pesos because it’s a different product. It’s milk but the taste, quality and [nutritional] properties are different, and people accept that.”
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“Flavor innovation is key to engaging younger consumers with the category as consumers are increasingly looking for
new consumption experiences and local flavors are particularly appreciated,” according to the Zenith report.
This year Mexican dairy company Santa Clara, owned by The Coca-Cola Company, launched a drinking yogurt flavored with mamey sapote, a native Central American fruit with a caramel-like flavor.
Santa Clara’s product contains 7% real mamey fruit, cows milk and added probiotics, and is free from added colors and artificial flavors.
"This new flavored branded yogurt creates distinctive flavor excitement, which would help Santa Clara to strengthen its image of an innovative dairy brand," it said. "The company is aiming to gain market share by attracting consumers that have curiosity and are bored of current flavors offered by dairy companies."
Meanwhile, Rochinha’s ice cream range uses local ingredients or flavors such as avocado; coconut & dulce de leche; sweetcorn; and coconut & pumpkin.
Main image: Mamey sapote fruit. © GettyImages/jmillard37
The snacking trend has gained momentum across Latin America within cheese with a wide range of on-the-go products that are individually wrapped or divided into individual portions.
Snack products are also created to appeal to both price-conscious households as well as middle-class consumers, Sapin explained.
In Brazil, for instance, Danone launched individual pots of Danette chocolate requeijão (curd) cheese spread last year as a high-end, indulgent product.
“Yet we have also seen Polenguinho, a turkey-flavored snacking cheese, launched in the same year at the lower end of the price scale,” she added.
“People of all socio-economic groups are eating more food out of home.”
Main image: GettyImages/Rafael Elias
Protein has seen something of a global popularity boom in recent years and is starting to emerge across the Latin American region, although offerings still remain marginal, said Zenith.
Grupo Lala launched its Lala 100 protein, which contains 70% more protein and 30% more calcium than standard milk. According to Zenith, this product works well by positioning itself as a post-sport, recovery drink or as a breakfast beverage, designed to set consumers up for the day.
While Grupo Lala increases the protein content in Lala 100 through ultra-filtration, other manufacturers are adding in ingredients that are naturally high in protein.
Last year, Argentinian company Alimentos Bogat expanded its range of whey protein-fortified Yogurade with a coffee flavor that packs in 15 g of protein.
Others are using more natural, minimally processed protein sources.
“Yogurt brands such as Alpina and Boer'n yogurt, particularly in Brazil and Colombia, are embracing nuts to boost protein content, since consumers become increasingly aware of the protein-rich credentials of nuts,” said Zenith.
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“There is a growing demand for plant-based dairy alternatives in Latin America but there is a lack of options and mainstream availability compared to popular animal-based products," Sabin told FoodNavigator-LATAM. "The pricing reflects that and is also a contributory factor.”
Despite remaining relatively niche, plant-based product launches can be seen across Latin America from Chile’s The Not Company with its vegan mayonnaise to Colombian brand Hatsu’s line of almond, hazelnut and coconut plant-based milks.
Brazilian dairy ice cream manufacturer Rochinha launched a range of vegan ice creams and sorbets that bear the vegan logo.
Non-dairy companies are also experimenting with more convenient formats. This year, Paraná-based Benni Alimentos launched a soluble cashew nut milk powder with a two-year shelf life.
Main image: GettyImages/a_namenko
While some of the trends can be seen in other regions, such as protein and probiotics in Europe and North America, economic factors are responsible for driving others.
Cheese preferences in Mexico, for instance, have been affected by global trade tariffs slapped on by some of its trading partners.
“In Mexico, consumption is shifting to Egmont cheese following the increase in tariff of 25% on cheddar mainly coming from the US and Europe,” noted the report.
Main Image: GettyImages/AlexMX
