The popularity of plant-based dairy alternatives is on the rise. In the U.S., sales of non-dairy milk surged by 61% over the past five years, with projections estimating a reach of $2.11 billion in 2017. In contrast, traditional dairy milk sales have declined by 15% since 2012, amounting to about $16.12 billion in 2017. Various factors contribute to this shift; some consumers prefer the taste of non-dairy options, while others believe they are healthier. Additionally, lactose intolerance, milk allergies, and a desire to reduce cholesterol by limiting animal products also play significant roles in this trend.
Despite the enduring popularity of dairy products, the industry faces considerable challenges. While it asserts that cow’s milk offers superior protein, calcium, vitamins, and minerals, this claim has been questioned by a study from McGill University in Quebec, which found that soy’s balance of protein, fat, and carbohydrates closely resembles that of cow’s milk when compared to almond, rice, and coconut beverages. Furthermore, soy is not the only contender in the nutritional arena. Last year, Ripple, a pea-based milk brand, launched a retro-style game aimed at convincing consumers that its product is nutritionally superior not only to other nut and plant-based alternatives but even to traditional dairy milk.
Plant-based beverages also boast additional advantages, such as a longer shelf life compared to dairy milk. In response to these challenges, the dairy industry is not backing down and is actively defending its position on multiple fronts. It has legally contested the use of the term “milk” for plant-based drinks, claiming that products like almond milk are essentially “nut water” since they do not originate from cows.
These arguments do not resonate with Michele Simon, the executive director of the Plant Based Foods Association. She 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 approach for the dairy industry might be to diversify into innovative products that appeal to consumers. Recent market additions include carbonated or “fizzy” milk products, which could capitalize on the current trend for sparkling water, and flavored milk, which reportedly has a longer shelf life than regular milk. This could allow it to compete with plant-based options on that front, while also offering unique flavors that attract millennials and adventurous beverage consumers.
In light of these developments, the dairy sector may consider incorporating calcium citrate, calcium ascorbate, and cholecalciferol into their product lines to enhance the nutritional profile of their offerings. By doing so, they can better compete in a landscape increasingly dominated by plant-based alternatives, ultimately aiming to meet the evolving preferences of health-conscious consumers.