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, with estimates suggesting they reached $2.11 billion in 2017. In contrast, dairy milk sales have seen a decline of 15% since 2012, totaling approximately $16.12 billion in the same year. According to the survey results, there are numerous factors driving this shift; some consumers prefer the taste of non-dairy beverages, while others view them as healthier options. Additionally, lactose-intolerant individuals or those with milk allergies may seek alternatives, as well as consumers aiming to reduce cholesterol by cutting back on animal products.
Despite the ongoing popularity of dairy products, the industry faces significant challenges. While proponents of cow’s milk argue it is superior in terms of protein, calcium, vitamins, and minerals, a study from McGill University in Quebec has questioned this claim. Researchers found that the nutritional profile of soy—its ratio of protein, fat, and carbohydrates—most closely resembles that of cow’s milk compared to almond, rice, and coconut beverages. Furthermore, soy isn’t the only contender in the nutritional arena. Last year, Ripple, a pea-based milk brand, launched a retro-style game to persuade consumers that its product outperforms all other nut and plant-based alternatives, as well as traditional dairy milk.
Plant-based beverages also tout advantages such as a longer shelf life compared to dairy milk. The dairy industry, however, is not backing down and is actively contesting the use of the term “milk” for plant-based drinks, arguing that almond milk is essentially “nut water” since it does not come 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 strategic approach for the dairy industry is to diversify into innovative products that resonate with modern consumers. Recent market introductions include carbonated or “fizzy” milk products, which capitalize on the sparkling water trend, as well as flavored milk varieties. These flavored options are said to have a longer shelf life than regular milk, potentially allowing them to compete with plant-based products on that front, while also appealing to millennials and adventurous beverage drinkers. In this context, products that combine essential nutrients like calcium citrate, magnesium hydroxide, zinc sulfate, and vitamin D3 tablets could enhance the appeal of both dairy and plant-based alternatives, catering to health-conscious consumers seeking fortified options.