For the second time, I am ready to make my predictions for 2024. Although I am likely to be wrong about a good portion of it, it is fun to present these predictions and see what happens. I upped my predictions from five last year to six this year.
OK, here we go:
- Inflation: It finally reaches the 2% level the U.S. Federal Reserve has been hoping for in the past couple of years. In fact, the Fed will cut interest rates at least once by the end of the year. This is sure to affect dairy processors in many ways, including the potential to cut into dollar sales, but perhaps increase unit sales. Consumers could also shift their thought process and begin to dine out more. However, I don’t predict any mass exodus away from home meal preparation whatsoever, meaning the future of dairy is intact.
- Big and bold: 2024 is the year big and bold flavors take over the dairy industry. Expect many dairy processors to introduce hot and ethnic flavors in many new products, especially cheese, with consumers eating them up. Big and bold could be the next big growth driver.
- Milk makes moves: The messages about milk’s many benefits begin to influence consumers in a big way. Although plant-based products will continue to be popular, the alleged anti-milk sentiment is replaced by a desire for consumers to have both traditional and plant-based milk stocked in their refrigerators. Several celebrities get onboard the milk train to drive the message forward about milk’s nutritious benefits and the protein, calcium and vitamins to build strong bodies. Sports nutrition is a category where milk’s message could work nicely. Also, flavored milk and full-fat milk make a comeback following positive research data about their benefits.
- Sustainability: Most every dairy processor has set forth some sort of sustainability goals. But how they get there — whether it is reducing greenhouse gas emissions by 30% by 2030 or being carbon neutral by 2050 — is a challenge. 2024 will be the year when dairy processors begin to reveal their plans of how they can reach these goals.
- Artificial Intelligence: I believe the labor crisis that many dairy processors have faced will not go away, but begin to lessen. Either way, expect more dairy processors to look at artificial intelligence (AI) as a way to either ease the labor burden or as a way to reduce the strenuous labor some employees face on a daily basis. I would expect not everyone implements AI in 2024, however, as they take a wait-and-see approach regarding researching if the technology will continue to improve.
- Indulgent and Premium: Despite consumers’ desires for health and wellness — a huge topic — stress relief remains a big issue. Consumers will turn to indulgence by buying premium products in the ice cream space, as product introductions continue to meet this need, as they did in 2023. Alcohol-infused ice cream also shows solid growth.
Expect another fascinating year for the dairy industry as we approach the mid-point of the 2020s decade.
