In the current economic environment, Canadian consumers are being more selective in their choices and conscientious about getting more for their money. When it comes to food decisions, dairy producers are well positioned to tackle these headwinds.

According to Marie-Eve Jutras, Director, Market, Consumer Insights and Business Processes, dairy products enjoy a positive perception, as evidenced by consumption and sales data. The business environment continues to be very stable. Here is a snapshot of the situation, with three main trends.

1) Canadians are big fans of dairy products

Over the past three months, 99% of Canadian households have consumed dairy products, according to a national survey conducted by Agropur through Léger in September. “For Canadian consumers, dairy products have an undeniable advantage: Nearly three-quarters (73%) of Canadians believe they are good for you and 91% believe they taste good,” says Marie-Eve Jutras. In comparison, only 54% believe plant-based products are healthy and the same percentage believes they taste good.

Dairy products are therefore viewed very positively by consumers and it’s no surprise that the survey found that 60% of Canadians believe it’s important to eat dairy products every day.

Even more interesting are the consumption patterns in retail. Fluid milk has been in slight decline for several years. However, figures show a 1% growth in fluid milk over the last quarter, while plant-based products declined by 2%. On a weekly basis, Canadian households consume an average of two litres of milk and less than half a litre of plant-based beverages. That’s a very positive ratio, says Jutras. And although plant-based drinks get a lot of attention on social media, they account for just 9.4% of consumption volume, compared to 90.6% for cow’s milk.

Two products grew strongly in the past quarter: cottage cheese (+15%) and sliced cheese (+14%).

2) Private labels continue to perform well

Consumers want more bang for their buck. That’s the main reason why nearly 25% of retail product sales, whether in traditional grocery stores or in big-box or discount stores, are private label. Private label brands are on the rise, growing at nearly twice the rate of national brands in dollar terms. “We’re fortunate to work in categories where private labels are very well developed,” says Marie-Eve Jutras.

In particular, private label butter accounts for 53% of butter sales volume. For cheese, whether block, sliced or shredded, the figure is 50%. “These are very promising categories, although we don’t always realize it when we walk down the grocery aisle,” says Jutras. All Canadian households bought private label brands in the past year. What’s changing is that they’re doing it more regularly and they’re more satisfied with those purchases.

With 75% of its sales coming from private label, institutions and food services, Agropur is positioning itself as a partner of choice for the food industry. Indicators for the coming months continue to point in the right direction and the Cooperative is in good shape to continue its growth in this segment.

3) Value-added products holding their own

Lastly, a major trend for dairy processors is the higher growth in value-added products, such as lactose-free milk or Natrel Plus and some cheese ranges. The trend continues even in the current economic climate, but consumers are adapting. “As they seek value, consumers are looking for more promotions to cope with the current situation,” says Marie-Eve Jutras.

Premium white milk products (fine-filtered, lactose-free, organic and high-protein) are an important cornerstone and Agropur is well positioned as a leader in this segment with its Natrel brand, which has a 45% share of this market by volume. It should be noted that prices in the premium segment are on average 1.5 times higher than regular milk prices, offering processors very attractive added value.