Traditionally, the dairy trade in the US has been one of many strongest on the earth. With 91% of American customers usually consuming some type of milk. There have been appreciable innovation and consumption alterations prior to now few years – most notably because of the introduction of plant-based milk choices. With extra choices obtainable and generational divides showing extra prevalent than ever, Mintel is exploring the present tendencies within the US milk trade and the way we count on it to develop sooner or later.
US Dairy Milk Business
In Mintel’s 2024 International Meals & Drink Traits report, we reported that the ageing US inhabitants could look to groceries as a supply of wholesome vitamins and well being advantages that may assist help them as they age. The dairy milk trade may have nice potential on this space, however manufacturers might want to work onerous to spice up the fame of milk as providing well being advantages Contemplating that 2 in 5 individuals aged 55+ contemplate non-dairy milk to be extra nutritious, and solely round 1 in 5 contemplate dairy milk to be extra nutritious. Nevertheless, two-thirds of older customers say that they drink dairy milk as it’s what they’re used to. Dairy manufacturers have the chance to capitalize on excessive Gen X loyalty and reaffirm it by boosting how their merchandise market the well being advantages of dairy milk.
The Development of Non-Dairy Milk
With vegan diets and plant-based consuming changing into ever extra widespread throughout the final decade, it ought to come as no shock that plant-based milk are critical disruptors within the US milk trade. To view this variation on a micro degree, Mintel has reported that between 2022 and 2023 consumption of dairy milk has decreased by 4%, whereas consumption of non-dairy milk has elevated by 5%. These two shifts mixed have put dairy and non-dairy milk consumption inside round 10% of one another; a charge that might hardly have been predicted just some years in the past.
Nevertheless, the rise of plant-based milk doesn’t essentially imply the autumn of dairy milk. Though consumption charges have dropped, the vast majority of US customers stated that they buy a mix of dairy and non-dairy milk merchandise. Certainly, lower than 1 in 5 customers stated that non-dairy milk is their main milk sort, whereas greater than half of customers buy non-dairy milk. So, this shift within the milk trade could also be in the direction of a extra various procuring basket relatively than a like-for-like swap.
Traits in Plant-Primarily based Milk
Plant milk has grown in reputation lately, however some choices are extra favorable amongst US customers than others. Almond milk is by far essentially the most regularly consumed, with 2 in 5 customers buying it in 2023. Oat, coconut, and soya milk are all comparatively equal, with 15-20% of customers buying these plant-based milk merchandise in 2023.
Why are customers shifting in the direction of plant-based milk with such power? Whereas a 3rd of customers say that lactose intolerance inside their family is the motivating issue for buying non-dairy milk, the largest motive is as a result of it’s higher tasting than dairy milk. Nevertheless, apparently, that is additionally essentially the most generally cited motive for dairy customers – so maybe it comes down largely to private style and desire!
On a extra aware degree, plant-based milk customers have acknowledged their desire for non-dairy milk as it’s perceived to be extra nutritious, extra pure, greater in protein, higher for animals, and higher for the atmosphere. We will see that there’s a vital moral think about plant-based milk consumption, together with dietary preferences.
When it comes to new product launches, throughout the plant-based milk area, it’s ‘barista model’ milk with a give attention to flavors which might be most outstanding. Extra customers famous that they add their non-dairy milk to espresso than dairy milk, so with espresso being a significant utilization of plant-based milk, it’s clear why barista-style milk is a well-liked selection from manufacturers.
Go to the Mintel Retailer for extra Dairy Business Insights
Traits in Kids & Child Milk
Within the Mintel 2023 Way forward for Child Meals & Milk report, our analysts reported that immunity-boosting and plant-based choices for child milk have gotten outstanding. European dad and mom are focusing totally on child milk and meals that may help their youngsters’s immunity – in actual fact, new launches of child milk and meals with immunity claims have grown from 9% to fifteen% between 2018 and 2023. Equally, an growing quantity of child milk and meals with natural claims have been launched lately.
In the meantime, within the US, plant-based child milk is essentially the most vital rising area. New launches of plant-based child milk have tripled since 2018. The age group which mostly reported buying solely non-dairy milk was 35-44. With the typical age of American first-time dad and mom rising lately, it could possibly be that extra dad and mom of infants and toddlers don’t drink animal milk, and want for his or her youngsters to do the identical.
Trying Forward with Mintel
Mintel’s analysis suggests very strongly that plant-based milk consumption has elevated over the previous few years, and can proceed to develop. With extra choices obtainable than ever earlier than, an growing variety of customers are incorporating non-dairy milk into their weight loss program. Although customers will not be usually chopping dairy milk out of their diets totally, we count on to see extra customers choosing a combined weight loss program of dairy and non-dairy milk.
When it comes to the place the dairy milk trade can develop, Gen X is a smart space for development and loyalty. Though low numbers of Gen X customers understand dairy milk to be higher for his or her well being, they are typically extra loyal to dairy milk and their loyalty may be cemented by different advertising that focuses on milk’s well being advantages.
For the child milk trade, plant-based stays a key space of development. Within the US, rising numbers of fogeys are selecting plant-based milk for his or her youngsters, and this can be a key space for brand spanking new product launches and innovation.
For extra development evaluation, discover our in depth Milk and Dairy Market Analysis as we speak.
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