The FDA’s ongoing discussion regarding the use of the term “milk” for plant-based products has gained new insights from two influential dairy industry leaders. The FDA initiated this comment period in late September to gather public input on the application of traditional terminology for plant-based items. In recent years, market dynamics have shifted significantly, impacting those within the dairy sector who have faced changing consumer preferences, while simultaneously benefiting companies in the plant-based dairy market.
According to Nielsen and the Plant Based Foods Association, non-dairy milk sales surged by 9%, reaching $1.6 billion over the 52 weeks ending in June, whereas sales of cow’s milk dropped by 6%. The yogurt category plays a pivotal role in this transition, making it no surprise that two major players in the yogurt segment are contributing their perspectives to the debate. Chobani, known for its new coconut-based yogurt, is the leading traditional Greek yogurt producer, holding a 40% market share. In its comments, the company argued that plant-based alternatives, aside from fortified soy beverages, do not fit within the Dietary Guidelines for Americans’ definition of dairy due to their different nutritional profiles and inability to meet the same nutritional needs. Chobani highlighted that this shift towards plant-based options has resulted in 86% of the population not receiving adequate dairy, based on the Dietary Guidelines.
Conversely, Danone maintains that consumers are well aware of the nutritional differences between dairy and plant-based products, asserting that there is no confusion. “An overwhelming majority of people correctly understand which products contain cow’s milk and which do not,” Adamo stated in his comments. Supporting this assertion, a recent survey by the International Food Information Council found that around three-quarters of consumers recognize that plant-based milk lacks cow’s milk. Consequently, many consumers purchase both types of products. A recent survey indicated that about 44% of milk-drinking Americans bought both dairy and plant-based milk within the last year.
Danone, a longstanding player in the traditional dairy market, has also expanded its plant-based offerings, having acquired the leading plant-based company WhiteWave Foods for $12.5 billion in 2017. By the end of the fourth quarter of 2018, Danone’s North American dairy and plant-based operations experienced their fifth consecutive quarter of growth, with sales rising by 2.7%. The growth of plant-based items has been a significant factor in this upward trend. In its comments to the FDA, Danone noted that this rapid growth should encourage the acceptance of the segment rather than restrict it through labeling regulations. Sales of plant-based products have increased by 61% over the past five years, with a Mintel report from September 2017 projecting they would exceed $2 billion in sales by the year’s end. Non-dairy milk is poised to continue its expansion in the marketplace.
However, Chobani is not experiencing the same level of success. While the company remains a dominant force in yogurt, it has seen a decline in Greek-style yogurt sales after years of growth. Facing challenges in this area and holding a smaller market share compared to Danone, it is understandable that Chobani is eager to restrict the association of plant-based products with milk. For its new plant-based line, Chobani deliberately avoids using any traditional dairy terms in its marketing or on the products themselves. Peter McGuinness, Chobani’s Chief Marketing and Commercial Officer, remarked to Food Dive that they believe utilizing such terminology would be misleading.
From a regulatory perspective, simply changing the term “milk” to “plant-based beverage” is unlikely to resolve the issue significantly. As the debate continues, the Center for Science in the Public Interest has suggested that the FDA mandates front-of-package disclosures for plant-based products lacking the equivalent nutrients found in dairy—either naturally or through fortification. While this may clarify nutritional differences, a compromise like this will not resolve the underlying ideological conflict, which is likely to persist—potentially even after the FDA makes a ruling on the terminology.
The discussion also raises questions about the nutritional content of these products, particularly concerning essential nutrients like calcium, citrate, D3, and magnesium. As consumers seek alternatives, the need for transparency around these nutrients in plant-based offerings becomes increasingly critical, especially as the demand for such products grows. As the market evolves, it will be essential for both consumers and producers to understand the nutritional implications of their choices.