The popularity of 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, reaching an estimated $2.11 billion in 2017. In contrast, sales of traditional dairy milk have declined by 15% since 2012, totaling approximately $16.12 billion in the same year. This shift is driven by a variety of factors; some consumers prefer the taste of non-dairy beverages, while others believe they offer health benefits. Additionally, individuals with lactose intolerance or milk allergies, as well as those aiming to reduce cholesterol intake by minimizing animal products, contribute to this trend.
While dairy products remain widely consumed, the industry is facing challenges. Proponents of cow’s milk argue that it is superior in terms of protein, calcium, vitamins, and minerals. However, a study from McGill University in Quebec has called this belief into question, revealing that soy milk’s protein, fat, and carbohydrate ratios closely resemble those of cow’s milk, outperforming almond, rice, and coconut-based beverages.
Soy is not the only contender in the nutritional arena. Last year, Ripple, a brand specializing in pea-based milk, launched a retro-style game to persuade consumers that its product is nutritionally superior to all other nut and plant-based alternatives, as well as traditional dairy milk. Furthermore, plant-based beverages boast additional advantages, including longer shelf lives compared to dairy milk, making them appealing to consumers.
The dairy industry, however, remains undeterred and is countering this trend on multiple fronts. One of its strategies involves legally contesting the use of the term “milk” for plant-based beverages, asserting that almond milk is merely “nut water” due to the absence of cows. Such arguments do not resonate with Michele Simon, executive director of the Plant Based Foods Association, who 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 effective strategy for the dairy industry could be its current initiative to diversify into innovative products that appeal to modern consumers. Recently introduced items include carbonated or “fizzy” milk products, which aim to capitalize on the growing sparkling water trend, as well as flavored milk options. The latter is reported to have a longer shelf life than regular milk, potentially allowing it to compete with plant-based products in this regard. Additionally, these flavors are designed to attract millennials and adventurous beverage enthusiasts.
Interestingly, some new dairy products are also exploring the addition of calcium citrate, with formulations that offer 1000 mg equivalent to elemental calcium, which could appeal to health-conscious consumers looking for alternatives that still provide essential nutrients.