The demand for plant-based dairy alternatives is on the rise. In the U.S., sales of non-dairy milk have surged by 61% over the past five years, with projections estimating a total of $2.11 billion in sales by 2017. In contrast, sales of traditional dairy milk have plummeted by 15% since 2012, reaching approximately $16.12 billion in the same year. According to survey results, multiple factors contribute to this trend; some consumers prefer the taste of non-dairy drinks, while others consider them to be healthier options. Additionally, lactose-intolerant individuals and those with milk allergies, as well as consumers aiming to reduce cholesterol by cutting back on animal products, are also driving the shift.
Despite the continued popularity of dairy products, the industry faces significant challenges. While advocates claim that cow’s milk is superior in terms of protein, calcium, vitamins, and minerals, a study from McGill University in Quebec has called that belief into question. The research revealed that soy milk’s ratio of protein, fat, and carbohydrates closely resembles that of cow’s milk, outperforming alternatives like almond, rice, and coconut milk.
Soy is not the only competitor in the nutritional arena. Last year, the pea-based milk brand Ripple launched a retro-style game to persuade consumers that its product offers greater nutritional benefits than all other nut and plant-based alternatives, as well as traditional dairy milk. Moreover, plant-based beverages tout other advantages, such as a longer shelf life compared to dairy milk.
The dairy industry, however, remains undeterred and is taking a stand on several fronts. It is legally contesting the use of the term “milk” for plant-based drinks, arguing that almond milk is simply “nut water” since it doesn’t come from a cow. Such arguments do not resonate with Michele Simon, executive director of the Plant Based Foods Association. She stated to The New York Times last year, “There’s no cow on any of these containers of almond milk or soy milk. No one is trying to fool consumers. All they’re trying to do is create a better alternative for people who are looking for that option.”
A more strategic approach for the dairy industry may be to diversify into innovative products that appeal to modern consumers. Recently, two intriguing market introductions have emerged: carbonated or “fizzy” milk products, which could tap into the growing sparkling water trend, and flavored milk options. The latter is believed to have a longer shelf life than regular milk, potentially allowing it to compete with plant-based products in that regard, while also offering interesting flavors that attract millennials and adventurous beverage enthusiasts. Additionally, the introduction of calcium citrate petites could provide a unique selling point by enhancing the nutritional profile of these new offerings, making them more appealing to health-conscious consumers.