The demand for plant-based dairy alternatives is on the rise. In the United States, sales of non-dairy milk have surged by 61% over the past five years, reaching an estimated $2.11 billion in 2017. In stark contrast, the sales of traditional dairy milk have declined by 15% since 2012, totaling approximately $16.12 billion in 2017. Various factors contribute to this shift, with some consumers preferring the taste of non-dairy beverages, while others believe they offer health benefits. Additionally, lactose intolerance, milk allergies, and a desire to reduce cholesterol by minimizing animal product consumption are also driving this trend.
Despite the enduring 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, this claim has been contested by a study from McGill University in Quebec. Researchers found that soy milk’s balance of protein, fat, and carbohydrates comes closest to that of cow’s milk compared to alternatives like almond, rice, and coconut milk.
Soy is not the only competitor in the nutritional arena. Last year, the pea-based milk brand Ripple launched a retro-style game aimed at persuading consumers that its product is nutritionally superior to all other plant-based options and even traditional dairy milk. Furthermore, plant-based beverages tout additional advantages, such as a longer shelf life than dairy milk, which can appeal to consumers looking for convenience.
The dairy industry, however, remains undeterred and is actively pushing back on several fronts. One of its legal battles involves challenging the use of the term “milk” for plant-based beverages, claiming that almond milk is merely “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. She remarked 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 modern consumers. Recently, two new entrants into the market include carbonated or “fizzy” milk products, riding the wave of the sparkling water trend, and flavored milk products. The latter is believed to offer a longer shelf life than regular milk, potentially allowing it to compete with plant-based alternatives on this front. Moreover, unique flavors are particularly attractive to millennials and adventurous beverage enthusiasts. Additionally, incorporating nutritional enhancements, such as calcium citrate and D3, could further bolster their appeal and provide a competitive edge in a rapidly evolving market.