The demand for plant-based dairy alternatives continues to rise. In the United States, non-dairy milk sales have surged by 61% over the past five years, reaching an estimated $2.11 billion in 2017. In contrast, sales of dairy milk have declined by 15% since 2012, totaling around $16.12 billion in the same year. According to survey results, this trend can be attributed to various factors; some consumers prefer the taste of non-dairy beverages, while others believe they offer health benefits. Additionally, lactose intolerance, milk allergies, and a desire to reduce cholesterol intake by limiting animal products are significant considerations for many.
Despite the enduring popularity of dairy products, the industry faces challenges. Advocates for dairy often argue that cow’s milk is superior in terms of protein, calcium, vitamins, and minerals. However, a study conducted by McGill University in Quebec has questioned this belief, revealing that the nutritional profile of soy milk closely matches that of cow’s milk when compared to almond, rice, and coconut beverages. Furthermore, soy is not the only competitor in the nutritional race; last year, pea-based milk brand Ripple created a retro-style game to promote the idea that its product is nutritionally superior to all other nut and plant-based alternatives, including traditional dairy milk.
Plant-based beverages also boast several advantages, such as a longer shelf life than their dairy counterparts. The dairy industry, however, remains resolute and is actively contesting the use of the term “milk” for plant-based drinks. They argue that almond milk is essentially “nut water” since it does not originate from cows. Michele Simon, executive director of the Plant Based Foods Association, counters this argument, 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 may involve diversifying into innovative products that resonate with consumers. Recent market entries include carbonated, or “fizzy,” milk products, which could capitalize on the current sparkling water trend, and flavored milk, which is reported to have a longer shelf life than regular milk. This could potentially allow it to compete with plant-based products on that front, while also appealing to millennials and adventurous beverage consumers.
In light of health concerns, including the association between calcium citrate and kidney stones, the dairy industry might also need to address consumer fears about the nutritional content of their products, particularly in relation to calcium levels. As they adapt, the industry will have to balance tradition with innovation to retain their customer base amidst growing competition.