Milking the Trend: How Plant-Based Alternatives Are Revolutionizing the Dairy Industry with a Healthier Twist
Plant-Based Milks: A Growing Market with Endless Possibilities
The demand for plant-based milks is on the rise, and companies are investing heavily in new products and technologies to cater to consumer tastes and differentiate themselves from competitors.
According to Lisa Amrani, co-founder of Retail Strategy Group, “The plant-based food market is growing at a rapid pace, with younger generations in particular cutting back on dairy and meat, leading to rapid expansion of product lines.”
Market research firm Mintel reports that sales of dairy milk have been declining for several years, likely due to the rise in popularity of plant-based alternatives. However, many Canadians still consume dairy products.
Joel Gregoire, food and drink category director at Mintel, notes that the biggest reason people choose plant-based milks is because they “are perceived as healthier than dairy,” and that it serves as an entry point for many consumers interested in plant-based alternatives.
Plant-based milk consumption is expected to continue to grow, with more options available than ever before and more consumers choosing diets that include both dairy and non-dairy milk.
A 2023 report by Ernst & Young predicts that the plant-based dairy market will reach $51.3 billion by 2035, growing at a compound annual growth rate of 9.5%.
Nick Feldman, founder of Saint-Auguste, Que.-based Natura, says, “Oats are the product that’s getting the most attention.” According to a Mintel report, the percentage of Canadians who said they would purchase oat milk quadrupled between 2019 and 2023 (almond milk remains the most popular).
Feldman notes that “coffee and oat milk go really well together,” adding that the flavor combination is great and that he likes it better than other plant-based milks.
Gregoire attributes the popularity of oat milk in cafés to its texture and foaming properties, making it a good alternative to lattes and cappuccinos.
Major dairy companies are jumping into plant-based milks, and Gregoire says it’s no surprise. “Dairy is big but not really growing, while plant-based products are booming.”
Gregoire emphasizes the importance of brands differentiating themselves through taste, health benefits, and how their latte foam is made, as consumers can potentially become overwhelmed by the sheer number of options.