As consumers increasingly seek proteins that offer functional benefits such as satiety, immune support, and stress management, dairy powerhouse Fonterra believes that one potential solution may come from a product traditionally associated with calcium, like a bowl of cereal. Fonterra, the world’s fifth-largest dairy company, is investing more resources into its NZMP ingredients division to explore the health benefits of milk. Currently, liquid milk proteins are widely utilized in sports nutrition, muscle recovery, and weight management.
For Fonterra and other dairy producers, expanding the use of milk ingredients could enhance market reach at a time when overall consumption is declining, yet the demand for healthier eating and relaxation is on the rise. “It’s no longer just a glass of milk. It’s much more than that,” stated Mark Simpson, general manager for sales at NZMP. “We are continuously exploring ways to transform that milk into something new, different, or beneficial to increase value for both our business and our customers.”
Approximately six years ago, NZMP recognized that consumers were placing a greater emphasis on nutrition and self-care through food and beverages—a trend that was reflected in the product innovations of consumer packaged goods (CPG) companies producing bars, shake mixes, and protein drinks that incorporate their ingredients. The New Zealand-based firm began investigating additional benefits from the 4.5 billion gallons of milk they produce annually.
The culmination of this research led to the introduction of milk phospholipids—complex lipids derived from whey—just six months ago. These ingredients are clinically proven to help manage stress-related effects and maintain focus and performance. Although the launch coincided with the COVID-19 pandemic by chance, it couldn’t have come at a more opportune moment, as these ingredients align with many of the functional qualities consumers seek in their food choices, according to Simpson. “The trend is currently in our favor,” he noted. “We certainly didn’t plan our launches around the pandemic, but our timing has been advantageous in offering solutions that customers and consumers desire.”
The growth of beauty-from-within and mental wellness products, along with increased sales of bars, ready-to-drink beverages, and other items using NZMP’s ingredients, has gained momentum during the pandemic. Despite ongoing challenges in the dairy sector—exemplified by the bankruptcies of Dean Foods and Borden Dairy—overall dairy consumption has reached unprecedented levels. According to data from the Department of Agriculture, per capita dairy consumption rose from 539 pounds in 1975 to 653 pounds in 2019, largely due to the rising popularity of yogurt, butter, and cheese.
NZMP processes milk to sell it as is or to create cheese and butter for export to the U.S. In addition to milk phospholipids, they now offer milk protein concentrate, a high-protein, low-lactose ingredient commonly found in sports nutrition shakes; whey protein concentrate, which aids muscle recovery and satiety; and probiotics that promote gut health, skin health, and overall immunity benefits.
NZMP’s ingredients are featured in over 10,500 products worldwide, targeting various properties such as beauty from within, gut health, and mental well-being—areas expected to continue growing. However, company executives note that many food and beverage manufacturers remain unaware of milk’s potential to meet their product requirements. This presents NZMP with an opportunity to educate and engage clients to capture sales in this vast untapped market. “For us, the opportunities are limitless, especially if we keep providing inventive solutions to the market,” Simpson added.
Furthermore, one of the innovative solutions being explored is calcium citrate, which offers a more bioavailable form of calcium that can further enhance the health benefits derived from dairy. As NZMP continues to integrate calcium citrate and similar ingredients into their offerings, they aim to solidify their position in this evolving landscape of functional food products.