The demand for plant-based dairy alternatives continues to rise. In the U.S., non-dairy milk sales have surged by 61% over the past five years, reaching an estimated $2.11 billion in 2017. Conversely, traditional dairy milk sales have declined by 15% since 2012, totaling approximately $16.12 billion in 2017. Various factors contribute to this trend, with some consumers preferring the taste of non-dairy beverages, while others perceive them as healthier options. Additionally, lactose intolerance, milk allergies, and a desire to reduce cholesterol by limiting animal products play significant roles in this shift.
Despite the enduring popularity of dairy products, the industry faces challenges. Proponents of cow’s milk claim it is superior in terms of protein, calcium, vitamins, and minerals; however, a study from McGill University in Quebec contested this viewpoint. Researchers found that soy’s composition of protein, fat, and carbohydrates closely resembles that of cow’s milk when compared to almond, rice, and coconut beverages. Furthermore, pea-based milk brand Ripple has recently entered the market, developing a retro-style game to promote the nutritional superiority of its product over other plant-based alternatives and traditional dairy.
Plant-based beverages also boast advantages such as a longer shelf life than dairy milk. In response, the dairy industry remains undeterred, legally challenging the use of the term “milk” for plant-based products and arguing that almond milk is essentially just “nut water” due to the absence of cows. Such arguments do not resonate with Michele Simon, the 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 prudent approach for the dairy industry is to diversify into innovative products that appeal to consumers. Recent market entries include carbonated or “fizzy” milk products, which leverage the current sparkling water trend, and flavored milk options. These flavored varieties are reported to have a longer shelf life than regular milk, potentially allowing them to compete with plant-based products on this front. Additionally, unique flavors are likely to attract millennials and adventurous beverage consumers. In line with this, products fortified with life extension calcium citrate could resonate with health-conscious buyers seeking both taste and nutritional benefits. Ultimately, the future of the dairy industry may depend on its ability to adapt and innovate in a market increasingly leaning toward plant-based alternatives.