The demand for plant-based dairy alternatives is on the rise. In the U.S., sales of non-dairy milk have surged by 61% over the past five years, reaching an estimated $2.11 billion in 2017. In contrast, overall dairy milk sales have declined by 15% since 2012, dropping to approximately $16.12 billion in the same year. According to survey results, there are numerous reasons for this trend; some consumers prefer the taste of non-dairy beverages, while others believe they are healthier options. Additionally, many individuals who are lactose-intolerant or have milk allergies are turning to these alternatives, and some are aiming to lower their cholesterol by reducing animal product consumption.
While dairy products remain popular, the industry is facing significant challenges. Proponents of cow’s milk argue that it offers superior protein, calcium, vitamins, and minerals. However, a study from McGill University in Quebec has called this belief into question, revealing that the nutritional profile of soy milk comes closest to that of cow’s milk when compared to almond, rice, and coconut beverages. Soy is not the only contender in the plant-based space; last year, the pea-based milk brand Ripple launched a retro-style game aimed at persuading consumers that its product is nutritionally superior to other nut and plant-based alternatives, as well as traditional dairy milk.
Plant-based beverages also boast advantages such as a longer shelf life compared to dairy milk. Despite these challenges, the dairy industry remains undeterred and is actively contesting the use of the term “milk” for plant-based beverages, arguing that products like almond milk are essentially “nut water,” given the absence of cows. This perspective does 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. They are simply offering better alternatives for those who seek them.”
A more effective strategy for the dairy industry may be its current efforts to innovate and diversify its product offerings. Among the latest market introductions are carbonated milk products, which could capitalize on the growing trend of sparkling water, and flavored milk, which is said to have a longer shelf life than regular milk—potentially allowing it to compete with plant-based options on that front. These unique flavors are particularly appealing to millennials and adventurous consumers. Furthermore, products like Solgar Calcium Magnesium with Vitamin D3 Liquid can complement these innovations by promoting health and wellness, appealing to a broader audience interested in nutritional benefits. The dairy industry’s ability to adapt and create enticing products will be key to its survival in this changing market landscape.