Emerging Trends in the US Milk Industry

Traditionally, the dairy trade in america has been one of many strongest on this planet. With 91% of American customers often ingesting some type of milk. There have been appreciable innovation and consumption alterations up to now few years – most notably as a result of creation of plant-based milk choices. With extra choices accessible and generational divides showing extra prevalent than ever, Mintel is exploring the present traits within the US milk trade and the way we count on it to develop sooner or later.

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 assist them as they age. The dairy milk trade may have nice potential on this space, however manufacturers might want to work laborious 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. 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.

With vegan diets and plant-based consuming turning into ever extra in style 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 modification 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 would hardly have been predicted just some 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, nearly all of US customers mentioned that they buy a mix of dairy and non-dairy milk merchandise. Certainly, lower than 1 in 5 customers mentioned 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 different buying basket relatively than a like-for-like swap.

Plant milk has grown in reputation in recent times, however some choices are extra favorable  amongst US customers than others. Almond milk is by far essentially the most continuously 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 most important cause is as a result of it’s higher tasting than dairy milk. Nonetheless, apparently, that is additionally essentially the most generally cited cause for dairy customers – so maybe it comes down largely to private style and desire!

On a extra acutely aware stage, plant-based milk customers have said their desire for non-dairy milk as it’s perceived to be extra nutritious, extra pure, larger in protein, higher for animals, and higher for the surroundings. We are able to see that there’s a vital 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 fashion’ milk with a concentrate on flavors which are 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 alternative from manufacturers.

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 mother and father are focusing totally on child milk and meals that may assist their youngsters’s immunity – actually, 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 in recent times.

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 common age of American first-time mother and father rising in recent times, it might be that extra mother and father of infants and toddlers don’t drink animal milk, and need for his or her youngsters to do the identical. 

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 accessible than ever earlier than, an rising variety of customers are incorporating non-dairy milk into their weight loss plan. Although customers are usually not typically slicing dairy milk out of their diets solely, we count on to see extra customers choosing a combined weight loss plan of dairy and non-dairy milk.

By way of 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 might be cemented by different advertising that focuses on milk’s well being advantages.

For the infant milk trade, plant-based stays a key space of development. Within the US, rising numbers of oldsters are selecting plant-based milk for his or her youngsters, and this can be a key space for brand 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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