Elmhurst Dairy, once a major player in the East Coast dairy industry, operated for 92 years before shutting down last fall due to declining profitability. Instead of exiting the milk market entirely, this family-owned business is leveraging its expertise in dairy to thrive in the non-dairy sector. The situation for those remaining in the milk industry has been challenging, as consumer demand for dairy products continues to wane. Last year, many dairy farmers were forced to dispose of millions of pounds of milk, leading to a significant drop in prices. In response to the industry’s struggles, the U.S. Department of Agriculture extended approximately $11.2 million in financial aid to support dairy producers facing these hurdles.
In an effort to combat non-dairy competitors, several stakeholders in the milk sector have initiated lawsuits against non-dairy manufacturers, claiming that their assertions regarding health benefits or equivalency to dairy milk are misleading. Additionally, there is pending legislation in Congress that would mandate that only dairy-based products can be labeled as “milk.” However, this has not significantly impacted the sales of non-dairy milk, which remain robust. A study conducted by Mintel last year highlighted that U.S. non-dairy milk sales surged by 9% in 2015, while dairy milk sales fell by 7% during the same timeframe. A glance at grocery store refrigerator cases reveals this shift, as retailers increasingly offer plant-based milk options with fewer artificial ingredients.
Interestingly, some non-dairy products have started to incorporate powdered calcium citrate, appealing to health-conscious consumers seeking alternatives that provide nutritional benefits similar to those found in traditional dairy. As the market evolves, the use of powdered calcium citrate in non-dairy options may further enhance their appeal. This trend underscores a significant transformation within the beverage landscape, with non-dairy milk alternatives paving the way for a new era in consumer preferences.