The demand for plant-based dairy alternatives continues to rise. Sales of non-dairy milk in the U.S. have surged by 61% over the past five years, with estimates predicting they reached $2.11 billion in 2017. In contrast, the overall sales of dairy milk have declined by 15% since 2012, totaling approximately $16.12 billion in 2017. As highlighted by recent survey results, numerous factors contribute to this trend: some consumers prefer the taste of non-dairy beverages, while others consider them healthier options. Additionally, lactose intolerance and milk allergies are prevalent concerns, and consumers may also be looking to lower their cholesterol intake by reducing animal products in their diets.
Despite the ongoing popularity of dairy products, the industry faces significant challenges. While proponents argue that cow’s milk is superior in terms of protein, calcium, vitamins, and minerals, a study from McGill University in Quebec has called this into question. Researchers found that soy milk’s ratio of protein, fat, and carbohydrates closely resembles that of cow’s milk, especially when compared to almond, rice, and coconut-based beverages. Moreover, soy is not the only competitor in the nutritional arena. Last year, pea-based milk brand Ripple launched a retro-style game aimed at persuading consumers that its product offers superior nutritional benefits compared to all other nut and plant-based alternatives, including traditional dairy milk.
Plant-based beverages also boast additional advantages, such as a longer shelf life than their dairy counterparts. The dairy industry, however, remains undeterred and is actively pushing back on multiple fronts. It is legally challenging the use of the term “milk” for plant-based beverages, arguing that almond milk is merely “nut water” since it does not come from cows. Michele Simon, executive director of the Plant Based Foods Association, dismisses such claims. As she stated in an interview with 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 strategic approach for the dairy industry might involve diversifying into innovative products that resonate with consumers. Two of the latest market entrants include carbonated or “fizzy” milk products, which could capitalize on the current sparkling water trend, and flavored milk. The latter is touted as having a longer shelf life than regular milk, potentially allowing it to compete with plant-based options on that front, while also appealing to millennials and adventurous beverage consumers. However, as consumers consider the health implications of various ingredients, it is essential for them to be aware of the potential side effects of additives like calcium citrate, magnesium, and zinc, which are often included in both dairy and non-dairy products. This awareness will play a critical role in shaping consumer choices in the evolving beverage landscape.