“Rising Demand for Plant-Based Dairy Alternatives: A Shift in Consumer Preferences and Industry Challenges”

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, the overall sales of dairy milk have declined by 15% since 2012, with estimates around $16.12 billion in 2017. Numerous factors contribute to this trend, as highlighted by survey results; some consumers prefer the taste of non-dairy beverages, while others believe they are healthier options. Additionally, lactose intolerance, milk allergies, and a desire to reduce cholesterol intake by limiting animal products play significant roles in this shift.

While dairy products continue to be popular, the industry faces challenges. It is often claimed that cow’s milk offers superior protein, calcium, vitamins, and minerals; however, this assertion was contested by a study from McGill University in Quebec. The researchers found that the ratio of protein, fat, and carbohydrates in soy is the closest match to cow’s milk when compared to almond, rice, and coconut beverages. Moreover, soy is not the only contender in the nutritional arena. Last year, Ripple, a pea-based milk brand, launched a retro-style game to promote its product as nutritionally superior to all other nut and plant-based alternatives, even traditional dairy milk.

Plant-based beverages have additional advantages, such as a longer shelf life than dairy milk. The dairy industry, however, is undeterred and is pushing back on various fronts. It has legally challenged the use of the term “milk” for plant-based beverages, arguing that almond milk is merely “nut water” since it does not come from cows. Michele Simon, executive director of the Plant Based Foods Association, dismisses such arguments. In an interview with The New York Times last year, she stated, “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 effective strategy for the dairy industry may involve diversifying into innovative products that appeal to consumers. Recently, two new market entrants have emerged: carbonated, or “fizzy,” milk products that align with the current sparkling water trend, and flavored milk with a longer shelf life than regular milk. This could allow dairy to compete with plant-based products on longevity while attracting millennials and adventurous beverage consumers. Additionally, incorporating calcium carbonate and citrate into these products could enhance their nutritional profile, making them more competitive in a market that increasingly values health-conscious choices.