New research from Mintel reveals that non-dairy milk sales have seen steady growth over the past five years, growing an impressive 61 percent since 2012 to reach $2.11 billion in 2017.
While almond (64 percent market share), soy (13 percent market share) and coconut (12 percent market share) remain staples in the category, new non-dairy milk types are sparking excitement as consumers look to diversify their non-dairy milk repertoire. Indeed, new varieties have experienced fast growth in popularity as two thirds (63 percent) of those who have purchased pecan milk say they bought more pecan milk in 2017 than in 2016, while 58 percent of quinoa milk consumers say they bought more quinoa milk in 2017 than the year prior.
“While almond, coconut and soy milks remain the most popular types of non-dairy milk, other nut and plant bases are gaining traction, including pecan, quinoa, hazelnut and flax milks. Both established and new brands are taking advantage of the growing non-dairy milk segment, innovating with alternative non-dairy bases. Innovation will be a catalyst to drive the category forward in 2018 as both mainstream bases like almond and alternative plant bases offer added functional benefits and unique flavours. We predict that new plant bases such as cashew and rice will allow new entrants into the non-dairy milk category to eventually surpass the soy milk segment, one of the first non-dairy milk segments to really take off with consumers,” says Megan Hambleton, beverage analyst at Mintel.
Lessons for dairy?
Hambleton suggests that the dairy sector can learn from the success of plant-based drink brands to play up the health and flavour attributes of its products. She comments: “The healthy positioning and messaging leveraged by non-dairy brands has made an impression on consumers who purchase both dairy and non-dairy milk. Dairy milk often delivers on many of the attributes non-dairy milk consumers are looking for, but there is a clear lack of understanding. This indicates that dairy brands must better communicate the natural health benefits of dairy milk through campaigns or packaging claims. By focusing on some of the influential factors that non-dairy milk consumers want when looking for milk, such as flavour and health benefits, dairy milk brands may see more success retaining consumers within the category.”