Fonterra is targeting the wellbeing nutrition market as it looks to get more value for its milk.
Fonterra is launching a new brand to tap the growing wellbeing market as it chases higher value products for New Zealand milk.
The country’s largest dairy company has launched the Nutiani brand, which will see it use its intellectual property and research to help its business customers develop products in areas such as nutritional supplements, sports nutrition, medical nutrition and generic health and wellness.
“Fonterra’s deep expertise in nutrition science gives us an incredible advantage here,” said chief innovation and brand officer Komal Mistry-Mehta.
“We will use Fonterra’s existing expertise in nutrition science to develop targeted solutions, while opening up opportunities for strategic partnerships to deliver access to new markets and consumers.”
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A Riddet Institute study found plant-based ‘milk’ beverages give only a fraction of the nutrition that cow’s milk gives and are more expensive.
Fonterra is stepping up its innovation and science spending to move its milk into higher value specialty nutrition products as it looks for ways to increase profit in an environment where milk volumes are no longer increasing.
The co-operative is targeting the US$66 billion (NZ$108b) global market for physical, mental and inner wellbeing nutrition which is growing at 6% per year, and the US$50b medical nutrition market which is growing at a 5% annual pace.
Mistry-Mehta said Fonterra’s customers were facing growing pressure to accelerate their innovation pipeline in response to consumer demand and were looking for partners to help them identify and develop new products.
Four in five consumers had become more health conscious since the Covid-19 pandemic, she said, citing Euromonitor research.
“There’s no doubt that people are paying more attention to wellbeing and managing it through diet,” she said. “The potential is huge.”
Research showed 96% of consumers actively managed their wellbeing, with more than half of these consciously managing their diet to improve their wellbeing, she said.
Fonterra expected North America, North Asia, China and Southeast Asia would be big markets for Nutiani, she said.