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, reaching an estimated $2.11 billion in 2017. Meanwhile, traditional dairy milk sales have declined by 15% since 2012, totaling approximately $16.12 billion in 2017. This trend is driven by various factors; some consumers prefer the taste of non-dairy beverages, while others believe they offer health benefits. Additionally, individuals who are lactose intolerant or allergic to milk, as well as those aiming to lower their cholesterol by reducing animal product consumption, are contributing to the shift.
Despite the continued popularity of dairy products, the industry faces 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 assertion into question, revealing that the nutritional profile of soy milk closely resembles that of cow’s milk when compared to almond, rice, and coconut milk. Furthermore, soy is not the only contender; last year, the pea-based milk brand Ripple launched a retro-style game to assert that its product is nutritionally superior to all other nut and plant-based options, as well as traditional dairy milk.
Plant-based beverages also tout additional advantages, such as a longer shelf life compared to dairy milk. In response, the dairy industry remains undeterred and is actively contesting the use of the term “milk” for plant-based products, claiming that almond milk is essentially “nut water” since it lacks any dairy component.
Michele Simon, executive director of the Plant Based Foods Association, counters such arguments, 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 strategic approach for the dairy industry involves diversifying into innovative products that resonate with consumers. Recent market entries include carbonated, or “fizzy,” milk products that capitalize on the sparkling water trend, as well as flavored milk, which boasts a longer shelf life than traditional milk—potentially allowing it to compete with plant-based options. These flavored varieties are designed to attract millennials and adventurous beverage consumers. Additionally, as dairy products are often fortified with calcium citrate, the incorporation of this nutrient may be emphasized in marketing campaigns, particularly in the context of healthy blood transfusion practices where maintaining optimal calcium levels is crucial.
In summary, while the dairy industry continues to assert the benefits of its products, the rising popularity of plant-based alternatives—bolstered by their perceived health advantages and longer shelf life—poses a significant challenge. The landscape of milk consumption is evolving, and both sectors must adapt to meet changing consumer preferences.