Fresh thinking for an industry in transformation

Global dairy consumption is expected to increase by one per cent per year over the next decade, driven by population growth and rising incomes, according to OECD statistics. In tandem, consumer tastes and lifestyles are evolving at pace. For example, the consumption of white milk is projected to decline as we approach 2035 in the EU, while functional and fortified dairy products are gaining ground as consumers increasingly seek products that deliver health and wellness benefits.
For dairy producers, this may seem like a threat which disrupts their core business model and necessitates a switch to costly all-new equipment ranges. However, the shifting market actually presents a great opportunity: dairy producers can use key processing technologies to develop new products and embrace a wider spectrum of ingredients.
There can be no question that producers must adapt if they wish to meet and reap the benefits of this changing demand across both markets and product categories. The transformation of the dairy industry requires fresh thinking across product development, an agile approach to manufacturing and investment in technologies that deliver versatility, efficiency and differentiation. With a wide-ranging perspective across the value chain, Tetra Pak sees first-hand how dairy producers can, and must, respond.

Diversifying the portfolio
By leveraging key processing technologies, dairy producers can unlock high-value ingredients in a changing market.
Membrane filtration is primarily used to separate milk as well as whey after cheese production into its major constituent components (for example, water, fat, protein), concentrate, and for proteins, fractionate them. In turn, these can either be used in new products such as protein enriched milk or sold on. Also, separation and concentration of plant-based proteins is an application on the rise.
For example, cheese producer Mammen Dairies in Denmark and Tetra Pak developed a solution for a reverse osmosis membrane filtration unit for whey concentration. Whey is a valuable by-product of cheese production. It contains water and proteins and the filtration unit removes approximately 75 per cent of the water from the whey. The concentrated whey protein is then sold to producers of ingredients for sports nutrition drinks – a product category that has seen increased consumer demand and appeal in recent years as part of the wider appetite for functional food and beverage products. As a result, this filtration unit has made a significant difference to Mammen Dairies’ bottom line.
Membrane filtration can take the process even further by fractionating the proteins to produce a wide spectrum of ingredients. For example, in white milk processing, microfiltration can separate the protein component into casein and whey proteins. The casein can then be further processed to extract calcium phosphate. In turn, this can be added to products such as plant-based milk to boost the micronutrient content, which is naturally lower than in traditional dairy products. This ability to separate ingredients is crucial for dairy producers looking to expand their portfolios and market reach in an altered landscape. And often comes with profit opportunities.
Take Arna, a small dairy in Iceland, for example. After studying consumer trends, Arna saw a niche in the market for plant-based products and started producing oat-based skyr. The leap was feasible because the company already had an ultrafiltration unit in place, which was used in the production of lactose-free skyr and yogurt. Tetra Pak then helped Arna find the right filtration equipment and membrane for oat filtration, which ended up with the company renting three pilot plants and developing six flavours of oat-based skyr, including strawberry, blueberry and lime-coconut.
The future

Emerging product categories present both a challenge and an opportunity for the dairy industry. By taking advantage of modern processing technologies, dairy producers can seamlessly adjust, developing new ingredients and products to expand beyond existing formats. This will help them to stay competitive in a rapidly evolving global market. With the right insights and innovations, today’s challenges become tomorrow’s growth.