Recent trends in dairy consumption have shown a resurgence in the popularity of traditional cow’s milk, overshadowing the growth of plant-based alternatives. Both in the UK and the US, sales of dairy milk have been on the rise, while plant-based options have experienced a decline in consumption.
According to data from NielsenIQ, the UK witnessed a significant increase in conventional dairy sales compared to plant-based analogues. Vegan cheese, in particular, saw a decline in both retail spending and volume. This shift in consumer behavior can be attributed to various factors, including the declining engagement in initiatives like Veganuary.
Experts suggest that the rise in dairy consumption is linked to concerns over ultra-processed foods (UPFs). Many consumers perceive plant-based milk alternatives as highly processed due to the additives used in their production. This negative perception has contributed to the preference for conventional dairy products.
In the US, the surge in raw milk consumption has further impacted the market, despite warnings from health authorities about the associated risks. Influencers promoting raw milk as a healthier option have fueled this craze, leading to a notable increase in sales.
Cost is another significant factor influencing consumer choices, with plant-based alternatives often priced higher than dairy products. The current economic climate, marked by inflation, has made dairy milk a more attractive option for budget-conscious shoppers.
Despite these challenges, the plant-based milk industry remains resilient. Sales data indicates that these products continue to have a strong market presence, particularly in regions like the UK and the US. Innovation within the sector, such as the introduction of protein-rich alternatives and clean-label options, is driving consumer interest and loyalty.
Companies like Starbucks and Dunkin’ have responded to consumer demand by eliminating surcharges on non-dairy milk options. This shift in pricing strategies reflects the growing popularity of plant-based alternatives and the evolving preferences of consumers.
Looking ahead, the plant-based milk market is poised for further growth and innovation. With a focus on meeting consumer needs and preferences, the industry is expected to continue disrupting traditional dairy markets and expanding its market share.
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