Sales of dairy milk fell by 7% in the US last year, as the rising popularity of dairy-free alternatives and the impact of “negative health perceptions” took hold on manufacturers, according to the latest research from Mintel.
The dairy alternatives market grew 9% to reach value sales of $1.9 billion in 2015, the report said. Mintel claimed that the sector’s continued popularity was “troubling” for dairy milk producers, with 49% of Americans consuming non-dairy milk – including 68% of parents and 54% of children. In addition, Mintel’s research showed that 69% consumers thought that non-dairy milks were healthy for children – 7% higher than those that thought the same about dairy milk.
46% if non-dairy milk consumers drink it at least once a day, its consumption being boosted by perceived positive effects on heart health and supporting weight loss. The figures highlight the fact that consumers are turning to non-dairy milks for lifestyle reasons, according to one Mintel expert.
Beverage analyst Elizabeth Sisel said: “In addition to half of Americans consuming non-dairy milk, our research reveals that nearly all non-dairy milk drinkers also drink dairy milk, revealing that consumers are turning to non-dairy out of preference as opposed to necessity. Consumers are also less likely to drink dairy milk by itself, instead adding it to food or as an ingredient, undoubtedly contributing to the category’s steady decline in consumption. This signals a need for brands to communicate the benefits of consuming dairy milk as a beverage, especially among parents, who are more willing than consumers overall to drink non-dairy milk and buy non-dairy milk for their children as a better-for-you alternative.”
Mintel said that product and ingredient innovation could lead to further adoption of non-dairy milk: three in ten Americans said they would be encouraged to drink more dairy alternatives if it was enriched with protein, while one in five said that they would attracted by the addition of beauty benefits such as skin and hair health – including almost 20% of men aged between 18 and 34.
Sisel added: “Our research shows that the difference in when and how much consumers are drinking milk demonstrates that dairy milk is still the go-to option, but it also exposes an opportunity for greater non-dairy milk market penetration. Consumers are connecting their diets with the way they look and feel. This creates opportunities for non-dairy milks to promote health in a number of areas for both men and women, from wellness and nutrition to beauty benefits such as hair and nail health.”
Despite the research, Mintel argued that there were still areas of opportunity for dairy milk. Consumers were more likely to agree that dairy milk was “naturally nutritious” than they were with non-dairy milk, and its perception scores for being both fresh and free of additives were also higher than with dairy alternatives.
“While consumer trends are not favouring dairy milk, brands have an opportunity to re-engage consumers by developing innovative offerings that focus on improving already favourable aspects such as taste profile and nutritional value,” Sisel continued. “It’s also important for brands to highlight that dairy milk is not just beneficial for bone health, but may also provide other benefits for consumers’ overall wellbeing as compared to non-dairy milk.”
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