In dairy industry, since last couple of years, there has been a significant rise in overall consumption of dairy products starting from milk, cheese to yogurt. Among these products milk is observed to be consumed as single content in a form of a beverage or as an ingredient.
Additionally, consumers are becoming health conscious and so they prefer convenient options that can be part of their daily routine. Therefore it is very integral for industry to produce dairy products that deliver for these needs.
Some of the emerging trends shaping the future of dairy industry are:
- Industry collaboration
- Digitization for product innovation
- Upgradation in global economics
- Implementation of advanced manufacturing processes and technologies
- Consumer demands for health conscious products
The future of dairy industry depends on how well it manages the upcoming opportunities and risks arising from the key drivers. A wise step would be incorporation of digital technologies to boost the overall process. What can be expected as a result when IT is penetrated in dairy industry.
Digitization for product innovation:
- The emerging digital era holds great promise for the dairy industry.
- Digital technologies help identify gaps in existing products, develop new and innovative ways of product usage and packaging and pave the way for venturing into newer markets.
- Using Big Data and analytics, companies can perform real-time sales analysis to understand consumption patterns, which can help modify production and marketing strategies.
- Mobility solutions can help dairy players to improve the customer experience by providing a real-time connect between the companies and the consumers.
The progress in dairy products has remained steady even with the challenges in economic conditions. Further, growth opportunities seem promising too, especially in South Africa with a slight improvement in economic conditions.
An increased focus on industry digitization is expected with an objective to achieve considerable growth. Once the desired level is attained regarding demand in market, dairy companies should aggressively look to scale up production through inorganic growth and jump into fresh demand.