Emerging Trends in the US Milk Industry

Traditionally, the dairy business in america has been one of many strongest on the earth. With 91% of American shoppers frequently ingesting some type of milk. There have been appreciable innovation and consumption alterations previously few years – most notably because of the creation of plant-based milk choices. With extra choices obtainable and generational divides showing extra prevalent than ever, Mintel is exploring the present developments within the US milk business and the way we anticipate it to develop sooner or later.

In Mintel’s 2024 World Meals & Drink Tendencies 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 help them as they age. The dairy milk business may have nice potential on this space, however manufacturers might want to work arduous to spice up the status of milk as providing well being advantages Contemplating that 2 in 5 folks aged 55+ take into account non-dairy milk to be extra nutritious, and solely round 1 in 5 take into account dairy milk to be extra nutritious. Nonetheless, two-thirds of older shoppers 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 changing into ever extra standard inside 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 alteration 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 price 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 shoppers mentioned that they buy a combination of dairy and non-dairy milk merchandise. Certainly, lower than 1 in 5 shoppers mentioned that non-dairy milk is their main milk kind, whereas greater than half of shoppers buy non-dairy milk. So, this shift within the milk business could also be in direction of a extra diversified purchasing basket fairly than a like-for-like change.

Plant milk has grown in recognition lately, however some choices are extra favorable  amongst US shoppers than others. Almond milk is by far essentially the most often consumed, with 2 in 5 shoppers buying it in 2023. Oat, coconut, and soya milk are all comparatively equal, with 15-20% of shoppers buying these plant-based milk merchandise in 2023.

Why are shoppers shifting in direction of plant-based milk with such energy? Whereas a 3rd of shoppers say that lactose intolerance inside their family is the motivating issue for buying non-dairy milk, the largest purpose is as a result of it’s higher tasting than dairy milk. Nonetheless, apparently, that is additionally essentially the most generally cited purpose for dairy shoppers – so maybe it comes down largely to non-public style and desire!

On a extra acutely aware stage, plant-based milk shoppers have acknowledged 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 atmosphere. We will see that there’s a important moral consider plant-based milk consumption, together with dietary preferences.

When it comes to new product launches, inside the plant-based milk area, it’s ‘barista fashion’ milk with a concentrate on flavors which might be most distinguished. Extra shoppers 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 distinguished. European dad and mom are focusing totally on child milk and meals that may help their youngsters’s immunity – in truth, 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 essentially 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 typical age of American first-time dad and mom rising lately, it may very well be that extra dad and mom 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 obtainable than ever earlier than, an rising variety of shoppers are incorporating non-dairy milk into their weight-reduction plan. Although shoppers should not typically slicing dairy milk out of their diets totally, we anticipate to see extra shoppers choosing a combined weight-reduction plan of dairy and non-dairy milk.

When it comes to the place the dairy milk business can develop, Gen X is a wise space for development and loyalty. Though low numbers of Gen X shoppers understand dairy milk to be higher for his or her well being, they are usually extra loyal to dairy milk and their loyalty will 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 development evaluation, discover our intensive Milk and Dairy Market Analysis in the present day.

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