As consumers increasingly seek beverages made from soy, almonds, coconuts and rice—even peas and oats—the dairy industry is responding with niche products of its own. But more changes are ahead as the traditional gallon-jug milk business struggles to compete with plant-based competition.
A new report from CoBank’s Knowledge Exchange Division predicts continued double-digit growth in the plant-based milk alternatives market. Sales are up 61 percent over the past five years, with slower growth of 15 to 25 percent projected by 2022. Meanwhile, cow’s milk consumption continues a decades-long slump…
Plant-based milks are helping revolutionize how the dairy industry does business. Excitement around plant-based milk alternatives has forced traditional milk to differentiate into a number of premium products in order to compete.
Source: Cobank.com
Lightbulb Moment: Dairy drinks are forced to get out of their comfort zone due to the plant forces coming in alongside. Plant sources have the advantage of having more dynamic options right now as they can come in the form of plant waters or milks and are also in the fermented space. Traditional dairy would be wise to start forming outside alliances as well as reinventing from within. It can play the part of the leading lady but also the best friend to expand into new territories.