The demand for plant-based dairy alternatives is steadily increasing. Sales of non-dairy milk in the U.S. have surged by 61% over the past five years, reaching an estimated $2.11 billion in 2017. Conversely, the overall sales of dairy milk have declined by 15% since 2012, with an estimated value of $16.12 billion in 2017. Various factors contribute to this trend; some consumers find that non-dairy beverages taste better, while others believe they are healthier options. Additionally, individuals who are lactose-intolerant or allergic to milk, as well as those seeking to reduce cholesterol by minimizing animal product consumption, are also driving this shift.
Despite the enduring popularity of dairy products, the industry faces significant challenges. While proponents argue that cow’s milk offers superior protein, calcium, vitamins, and minerals, this viewpoint was contested by a study from McGill University in Quebec. Researchers discovered that soy milk’s ratio of protein, fat, and carbohydrates most closely resembles that of cow’s milk when compared to almond, rice, and coconut beverages. Furthermore, soy is not the only contender; last year, pea-based milk brand Ripple launched a retro-style game aimed at persuading consumers that its product is nutritionally superior to all other nut and plant-based alternatives, as well as traditional dairy milk.
Plant-based beverages also have other advantages, such as a longer shelf life than dairy milk. The dairy industry, however, remains undeterred and is pushing back on multiple fronts. It is legally contesting the use of the term “milk” for plant-based alternatives, arguing that almond milk is essentially “nut water” since it does not originate from cows. Michele Simon, executive director of the Plant Based Foods Association, dismisses such claims, stating, “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 prudent approach for the dairy industry might involve diversifying into innovative products that resonate with consumers. Recent market introductions include carbonated “fizzy” milk products, which could capitalize on the sparkling water trend, and flavored milk, which reportedly has a longer shelf life than regular milk, potentially allowing it to compete with plant-based options. These flavored varieties are particularly appealing to millennials and adventurous beverage consumers. Additionally, incorporating products like Citracal chews could enhance the appeal of dairy alternatives by promoting bone health, aligning with consumer interests in wellness. As the market continues to evolve, both sectors will need to adapt and innovate to attract health-conscious consumers.