Revolutionising Dairy: AI, hybrid proteins, & digital innovation

WORLD – AI, hybrid proteins, and digital innovation are expected to change the course of the dairy industry, as the consumer’s expectations for health-forward, sustainable, and sensory-rich dairy products evolve.

The dairy industry is undergoing a significant transformation, driven by advancements in hybrid proteins, digitalisation, and artificial intelligence (AI).

As reported by Food Ingredients First, as consumer preferences shift toward health-conscious, sustainable, and functional dairy products, manufacturers are leveraging cutting-edge technologies to create future-ready solutions.

Emmi Martikainen, head of product development at Valio R&D stated, “One of the most prominent is the rising demand for lactose-free products across multiple markets, driven by increasing consumer awareness of digestive wellness.

“Additionally, the high-protein trend continues to be strong. Consumers are increasingly aware of the importance of protein as part of a healthy diet, and they are looking for products that provide high-quality proteins.”

Hybrid Proteins

Hybrid proteins are emerging as a key innovation, blending traditional dairy proteins with plant-based or precision-fermented alternatives.

This approach enhances nutritional profiles, sustainability, and sensory appeal, catering to the growing demand for clean-label and eco-friendly products.

Companies are exploring fermentation-based dairy proteins that mimic the taste and texture of conventional dairy products while reducing their environmental impact.

A report by Innova Market Insights, based on data, shows that protein-rich claims dominated dairy launches from April 2020 to March 2025, at 14%, followed by gluten-free (13%) and no additives/preservatives (10%).

Bastian Hörmann, Global Marketing Director, Sweet Goods, Dairy & Specialised Nutrition at ADM, stated that while whey and casein proteins play an essential role, incorporating an array of protein sources can provide even greater protein fortification and diversity.

“ADM research finds that 86% of consumers agree that it’s healthier to get protein from a wide variety of sources. Gaining traction now are hybrid/blended protein beverages, combining traditional dairy proteins with plant-based sources like soy or pea,” he said.

AI-Powered Innovation in Dairy

Artificial intelligence is playing a crucial role in product development, ingredient discovery, and personalized nutrition. AI models can analyze vast datasets to predict consumer trends, optimize recipes, and enhance food safety.

Additionally, AI-driven protein discovery is enabling the identification of alternative dairy proteins that closely resemble traditional milk proteins, offering new possibilities for functional and fortified dairy products.

Hörmann stated that he believes advanced technologies are crucial in shaping the future of food, including dairy products. This includes AI tools streamlining microbial strain identification for better application use and personalisation.

Concurrently, Valio’s Martikainen agreed that digitalisation and AI are needed throughout the dairy value chain. This is related to the “traceability of primary production, sustainability work and the development of new products and technologies.

Valio’s Food 2.0 project utilises AI and cellular agriculture with the goal of a €100 million (US$114 million) investment in RDI activities to make the food system more sustainable.

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