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. Conversely, sales in the traditional dairy milk sector have seen a decline of 15% since 2012, totaling approximately $16.12 billion in 2017. This shift can be attributed to various factors, as highlighted by the survey results. Some consumers prefer the taste of non-dairy beverages, while others believe they offer health benefits. Additionally, there are those who are lactose intolerant, have milk allergies, or are reducing cholesterol by minimizing animal product consumption.
While dairy products remain widely consumed, the industry faces significant challenges. Proponents of cow’s milk argue that it is superior in terms of protein, calcium, vitamins, and minerals. However, a study from McGill University in Quebec has challenged this perception, revealing that the nutritional profile of soy milk closely aligns with that of cow’s milk when compared to almond, rice, and coconut milk. Furthermore, soy is not the only contender in the nutritional arena. Last year, the pea-based milk brand Ripple launched a retro-style game to persuade consumers that its product outperforms all other nut and plant-based alternatives, including traditional dairy.
Plant-based beverages also offer additional benefits, such as a longer shelf life than their dairy counterparts. The dairy industry, however, remains resolute, legally contesting the use of the term “milk” for plant-based drinks and arguing that almond milk is essentially “nut water” since it lacks dairy origins. Michele Simon, executive director of the Plant Based Foods Association, counters such claims, 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 could involve diversifying into new and innovative products that appeal to consumers. Two recent market innovations include carbonated, or “fizzy,” milk products, which tap into the growing sparkling water trend, and flavored milk. The latter is reported to have a longer shelf life than regular milk, potentially allowing it to compete more effectively with plant-based products. Additionally, exciting flavors are designed to attract millennials and adventurous drinkers.
In this evolving landscape, companies like Bayer Citralcal D are also playing a role in enhancing the nutritional profiles of dairy products, which could help the dairy industry reclaim some market share. As competition intensifies, the ability to adapt and innovate will be crucial for the future of both dairy and plant-based alternatives.