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 contrast, sales in the dairy milk sector have experienced a 15% decline since 2012, totaling around $16.12 billion in the same year. As indicated by survey results, a variety of factors contribute to this trend: some consumers find non-dairy beverages more appealing in taste, while others believe they offer health benefits. Additionally, there are those who are lactose intolerant or have milk allergies, and some individuals are reducing their cholesterol intake by opting for fewer animal products.
Despite the enduring popularity of dairy products, the industry faces significant challenges. While proponents argue that cow’s milk provides superior protein, calcium, vitamins, and minerals, a study by McGill University in Quebec has contested this view. Researchers discovered that soy milk’s balance of protein, fat, and carbohydrates closely resembles that of cow’s milk when compared to almond, rice, and coconut beverages. Moreover, soy is not the only contender in this nutritional arena. Ripple, a pea-based milk brand, launched a retro-style game last year to persuade consumers that its product outperforms all other nut and plant-based alternatives, including traditional dairy.
Plant-based beverages also boast other advantages, such as a longer shelf life than their dairy counterparts. The dairy industry, however, remains undeterred and is actively contesting the use of the term “milk” for plant-based beverages, arguing that almond milk is merely “nut water” since it contains no cow’s milk. Michele Simon, executive director of the Plant Based Foods Association, dismisses such claims. In a statement to The New York Times last year, she noted, “There’s no cow on any of these containers of almond milk or soy milk. No one is trying to fool consumers; they’re simply providing a better alternative for those seeking it.”
A more effective strategy for the dairy industry may be its current initiatives to diversify and innovate products that resonate with consumers. Recent market entries include carbonated or “fizzy” milk products, which align with the current trend of sparkling water, as well as flavored milk products. The latter reportedly has a longer shelf life than regular milk—potentially allowing it to compete with plant-based options—and features intriguing flavors that attract millennials and adventurous beverage enthusiasts. Additionally, products like calcium citrate soft chews are gaining popularity among consumers seeking convenient sources of essential nutrients, further expanding the market for dairy alternatives and complementary products.