Traditionally, the dairy business in the US has been one of many strongest on the planet. With 91% of American customers usually consuming some type of milk. There have been appreciable innovation and consumption alterations up 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 business and the way we anticipate it to develop sooner or later.
US Dairy Milk Trade
In Mintel’s 2024 International Meals & Drink Developments report, we reported that the ageing US inhabitants might look to groceries as a supply of wholesome vitamins and well being advantages that may assist assist them as they age. The dairy milk business may have nice potential on this space, however manufacturers might want to work laborious to spice up the repute 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. Nonetheless, 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 Progress of Non-Dairy Milk
With vegan diets and plant-based consuming changing into ever extra well-liked throughout the final decade, it ought to come as no shock that plant-based milk are critical disruptors within the US milk business. To view this variation on a micro stage, 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 only a few years in the past.
Nonetheless, 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 combination 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 business could also be in direction of a extra assorted purchasing basket fairly than a like-for-like change.
Developments in Plant-Based mostly Milk
Plant milk has grown in reputation lately, however some choices are extra favorable amongst US customers than others. Almond milk is by far probably the most steadily 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 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 most important motive is as a result of it’s higher tasting than dairy milk. Nonetheless, curiously, that is additionally probably the most generally cited motive for dairy customers – so maybe it comes down largely to private style and desire!
On a extra aware stage, plant-based milk customers have acknowledged their desire for non-dairy milk as it’s perceived to be extra nutritious, extra pure, increased in protein, higher for animals, and higher for the surroundings. We are able to see that there’s a important moral consider plant-based milk consumption, together with dietary preferences.
By way of new product launches, throughout the plant-based milk area, it’s ‘barista model’ milk with a deal with 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 serious 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 Trade Insights
Developments in Youngsters & 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 assist their youngsters’s immunity – in reality, new launches of child milk and meals with immunity claims have grown from 9% to fifteen% between 2018 and 2023. Equally, an rising quantity of child milk and meals with natural claims have been launched lately.
In the meantime, within the US, plant-based child milk is probably the most important 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 common 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.
Wanting 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 rising variety of customers are incorporating non-dairy milk into their weight loss plan. Although customers should not usually reducing dairy milk out of their diets totally, we anticipate to see extra customers choosing a combined weight loss plan of dairy and non-dairy milk.
By way of the place the dairy milk business can develop, Gen X is a wise 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 could be cemented by different advertising and marketing that focuses on milk’s well being advantages.
For the child milk business, 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 pattern evaluation, discover our in depth Milk and Dairy Market Analysis at this time.
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