The flavored milk drinks arena is witnessing somewhat of a revival after the Covid slump that hit most of the food & beverage sector in previous years.
Traditionally a staple in many households – these – often chocolate-flavored – milk drinks are purchased for affordability and taste, while still delivering some of that “goodness” that the broader dairy category is known for.
While the category has jumped aboard the protein bandwagon, and fat & sugars content is being reduced, the revival is especially happening through sensorial innovation.
Some key statistics on flavored milk drinks, indicating room for growth:
- Europe represents only 10% of global flavored milk drinks volumes.1
- Germany and the UK are the Top 2 markets.1
- 1.2% CAGR til 2030* (dairy only flavored milk drinks).
- +19% growth in product launches.2
- Cost is the number one product attribute influencing purchase.3
The flavored milks market has witnessed a strong growth in new product launches over the last 3 years. These products are especially positioned around ethics & sustainability, active & passive health, and other premium positionings such as seasonal/limited editions, and co-branding.
A “flavored milk drinks” definition
The flavored milk drinks category includes cocoa milks and flavored dairy milks:
- Cocoa milks are sweetened milks containing various amounts of chocolate and/or cocoa powder and that are stabilized to varying degrees depending on regional/local preference.
- Flavored dairy milks are sweetened and flavored milks e.g. strawberry or banana flavor. A small portion of these are flavored through the inclusion of fruit juices.
Out of scope for the “flavored milk drinks” sector are recombined chocolate dairy drinks. These are products that are sweetened with cocoa but made with milk ingredients instead of liquid milk.
Key challenges
The key challenges manufacturers face in creating delightful flavored milk drinks can be summarized as four-fold.
1. Stabilize emulsion at low viscosity
2. Limit particles sedimentation (i.e. cocoa)
3. Enhance body/mouthfeel
4. Bring indulgence (taste & intensity of flavor, sweetness, color, mouthfeel)
The good news is that in Cargill you can find a one-stop-shop to address all these challenges.
Solutions
Insights and technical background
Insights Report: The state of flavored milk drinks
Discover your next opportunity for growth by exploring insights into the flavored dairy drinks market, consumer preferences and how Cargill can help you innovate for balanced yet indulgent success.
Technical white paper: Creating delightful cocoa milk drinks
Overcome formulation challenges and design cocoa drinks for permissible indulgence, by leveraging our expertise and ingredient solutions such as stabilizers, stevia sweeteners and our vast range of cocoa powders.
Applications: Delivering dairy joy for everyone!
Stevia sweetened cocoa milk
Sugar reduction achieved using Gerkens® Sweety (a mild cocoa powder low in bitterness) and EverSweet®* (steviol glycosides from fermentation) to allow for deeper sugar reduction while delivering desired sweetness.
*EverSweet® is a product of Avansya, a joint venture between Cargill and dsm-firmenich.
The future of dairy drinks looks bright. Let’s co-create it together!
1 Euromonitor database, flavored milk drinks total volumes, World and Europe, 2025
2 Innova Market Insights product launch database, July 2022-June 2025, Europe, flavored milks
3 Innova Market Insights category survey 2025, European average
4 The labeling, substantiation and decision making of all claims is the customers’ responsibility. We recommend you consult regulatory and legal advisors familiar with applicable laws, rules and regulations prior to making labeling claims decisions for your products.