The dairy industry must start listening to millennials, according to Peter Paul from Rabobank. He says that while it is “not all sunshine for dairy alternatives”, changes in consumption trends in the western world will be reflected in Asia-Pacific and China where dairy is a growing market.

The Rabobank research guru was speaking at the National Dairy Council’s "Dare to dairy" breakfast in Dublin on Tuesday morning.

“Consumers are increasingly going dairy-free. It’s all about perception, health and sustainability. It doesn’t have to be true; if it’s what people believe it is what’s happening. There are elements of the dairy industry we must watch closely,” Paul said.

The average household in Ireland consumes 6.2l of milk per week, according to research carried out by The Marketing Institute of Ireland. Ireland drinks the highest amount of milk per capita, at 125l. By comparison, the EU average is 59l. However, there has been growth in dairy alternatives such as soya, with 4% of Irish households consuming alternatives.

“The most worrying group are millennials,” said Larry Ryan, from The Marketing Institute of Ireland. “They are most likely to believe that dairy is fattening, indigestible and can cause allergies. Millennials are obsessed by image. Much of what millennials worry about is appearance and what people say about them. They like the taste of dairy but are driven by fashion and image. They worry about animal welfare and have a mistrust of corporations. Look at what Guinness did in terms of re-positioning itself as a micro-brewer.”

One in four say that they do not have enough information to be able to trust farmers.

The dairy industry needs to nurture kids, counter views on weight gain and rebuild trust with the consumer,” said Ryan.

Read more

Liquid milk: margin squeeze for 1,800 farmers