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Consumers Shifting Back to Traditional Dairy Products

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Consumers Shifting Back to Traditional Dairy Products

Amid concerns over ultra-processed foods and nutritional value, sales of plant-based milk alternatives are declining globally, with traditional dairy products experiencing a resurgence.

Decline in the Plant-Based Milk Market

Consumer preferences in the global dairy market are shifting back towards traditional animal-based products. According to data published by market research firm Circana, total sales volume of plant-based milk alternatives in the United States market decreased by 5% last year. The best-selling item in the category, almond milk, saw a sales decline of 7.9%. In the UK, sales volume contracted by 2.5% in the year leading up to June, while the growth rate of the alternative market also significantly slowed in France, Italy, the Netherlands, and Spain.

Ingredient Concerns and Price Advantage

The popularity that alternative milks gained in the 2010s has decelerated due to increasing consumer sensitivity towards ultra-processed foods. Consumers examining packaging labels have begun to move away from the thickeners, added fats, sugars, and artificial sweeteners found in these beverages. Whole cow's milk offers three to four times higher protein content compared to plant-based alternatives. Revenue generated from high-protein dairy products such as cottage cheese and skyr within Arla, a leading European producer, has shown an annual increase of approximately 25% since 2024.

Health-Focused New Strategies from Producers

Plant-based beverage producers seeking to halt market share loss are focusing on making their formulas simpler and more nutritious. Danone's brand Alpro is implementing a strategy to fortify its product range with calcium, protein, iodine, and vitamins, while the company's Silk Protein series promises 50% less sugar compared to regular cow's milk. Brands like MALK, among independent suppliers in the market, are highlighting their additive-free formulas on their labels, emphasizing 'no gums' on their packaging.

Sales and Revenue Changes in the Milk Market

Circana and Company Reports

Arla High Protein Product Revenue Growth
25%

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