Market Research Logo

Dairy and Dairy Alternative Beverage Trends in the U.S., 3rd Edition


Attention: There is an updated edition available for this report.

Special offer: now 20% off original full report price


Dairy and Dairy Alternative Beverage Trends in the U.S.



Packaged Facts covers current trends in the market for dairy and dairy alternative beverages sold through all types of retail outlets. The next several years will see intensified competition between dairy and dairy alternative beverages as both consumer comfort with the alternatives and criticism of dairy foods continue to grow. Sales of plant-based dairy alternative beverages, especially almond milk, show no signs of slowing and new alternative sources, such as coconut and cashews, are expected to drive the alternative segment even faster and higher over the next several years. Some participants in the dairy alternative beverage category have even pushed for retailers to give plant milks their own refrigeration cases to help underscore the split from dairy beverages that alternative beverages marketers seek to to make.

Market Trends

Refrigerated dairy and dairy alternative beverages currently lead the market, and increasing sales of refrigerated dairy and dairy alternative beverages have grown significantly between 2010 and 2014. Especially strong as an alternative beverage has been almond milk, with other plant-based dairy alternative beverages also driving market growth. These alternative beverages are likely to lead the way in market expansion over the next several years. Other alternative beverages substituting milk have also experienced sale growth in recent years, prompting organizations representing farmers, processors, and marketers in the dairy industry to make a significant rebound in response to the growth of the dairy alternative beverage market. 

Organizations in the dairy industry note that the alternative beverage market leads in innovation. In response,  the dairy milk industry is fighting back to re-establish milk as a product that is just as innovative as never alternative beverages, with spokespersons expressing the frustration that has been building up through years of having dairy foods in general and milk in particular bashed by food and nutrition “experts.” The National Dairy Council, the Milk Process Education Program (MilkPEP),and the Dairy Management Institute (DMI) collaborating in the “GetReal” campaign, launched in January 2015, to counter what the dairy industry perceives as misconceptions about dairy milk.  

Looking ahead, the battles will include the dairy forces stressing the protein levels of their products, along with other healthy added ingredients such as "ancient grains." New dairy milk products testing the waters against alternative beverages at the premium level will become more prevalent. More flavored milks will be introduced, including limited edition holiday and seasonal flavors. Also look for additional organic milk products, and for the dairy milk market to expand in other, more exotic ways.

But the dairy alternative marketers are not sitting on their hands as the competition intensifies from the dairy industry. They continue to launch new products and expand their marketing and advertising efforts to make sure the opportunity to gain ground doesn’t slip away. And more marketing muscle is expected to enhance the alternatives competitiveness as the soft drink industry, which like dairy milk competes with dairy alternatives, gets in the game via the acquisition route. Food industry analysts are waiting to see whether Coca-Cola or PepsiCo will be the first to announce a major takeover of a top alternative brand. Other major beverage companies not currently involved may make the entry into the alternative beverage market as well. 

Scope and Methodology

Dairy and Dairy Alternative Beverage Trends in the U.S. covers the dairy and dairy alternative beverages sold through all types of retail outlets, including supermarkets, discount stores and supercenters, warehouse clubs, and mass merchandisers, as well as convenience stores, drugstores, health and natural food stores, dollar stores, farms and farmers markets.

Market estimates within this report were based on both public and syndicated data sources. Packaged Facts has analyzed available sales and trend data, together with information pertaining to those products that move through unmonitored outlets, to estimate the total size of the market for the products in the categories under consideration.

Sales and market size data sources include:

  • IRI sales tracking through U.S. supermarkets and grocery stores, drugstores, and mass merchandisers (including Target, Kmart, and Wal-Mart) with annual sales of $2 million or more.
  • U.S. Census Bureau retail food sales data from the Economic Census surveys, annual retail channel sales, non-employer statistics.
  • U.S. Bureau of Economic analysis annual estimates for consumer spending by food type
  • Major food and beverage retailer annual reports for individual retailer sales

Packaged Facts also draws on a proprietary Packaged Facts national online consumer survey conducted in January 2015.

Information on new product introductions was derived from examination of the retail milieu and from relevant trade, business, and government sources, including company literature and annual reports.

 

 


  • Executive Summary
    • Scope of This Report
    • Methodology
    • The Market
      • Products Covered
    • Market Size
      • Table U.S. Retail Sales of Dairy and Dairy Alternative Beverages, 2010-2014 (millions of dollars)
      • Table Sales of Dairy vs. Dairy Alternative Beverages, 2010-2014 (millions of dollars, percent)
    • Market Trends
    • Market Forecast
      • Table Projected U.S. Retail Sales of Dairy and Alternative Dairy Beverages, 2014-2019 (millions of dollars)
    • Competitive Trends
    • Leading Marketers
    • Product Trends
    • Retail and Foodservice Trends
    • Advertising and Media Trends
    • Consumer Trends
  • Market Trends
    • Key Points
    • The Products
    • Refrigerated Dairy and Dairy Alternative Beverages
      • Product Definitions
    • Shelf-Stable Dairy and Dairy Alternative Beverages
      • Product Definitions
    • Market Size
      • The Overall Market for Dairy and Dairy Alternative Beverages
        • Table U.S. Retail Sales of Dairy and Dairy Alternative Beverages, 2010-2014 (millions of dollars)
    • Dairy vs. Dairy Alternatives
      • Table U.S. Retail Sales of Dairy vs. Dairy Alternative Beverages, 2010-2014 (millions of dollars)
    • Refrigerated Dairy and Dairy Alternative Beverages
      • Table U.S. Retail Sales of Refrigerated Dairy and Dairy Alternative Beverages, 2010-2014 (millions of dollars)
    • Shelf-Stable Ready-to-Drink Dairy and Dairy Alternative Beverages
      • Table U.S. Retail Sales of Shelf-Stable Ready-to-Drink Dairy and Dairy Alternative Beverages, 2010-2014 (millions of dollars)
      • Table IRI-Tracked Sales of Dairy and Dairy Alternative Beverages: Refrigerated vs. Shelf Stable, 2013-2014
      • Table IRI-Tracked Sales of Refrigerated Dairy and Dairy Alternative Beverages, 2013-2014
      • Table IRI-Tracked Sales of Shelf-Stable Ready-to-Drink Dairy and Dairy Alternative Beverages, 2013-2014
    • Market Trends
      • Almond Milk Growth Unabated
        • Table Almond Milk Shares of Total Dairy and Dairy Alternative Beverages Dollar Sales, 2013-2014
        • Table Almond Milk Shares of Total Dairy and Dairy Alternative Beverages Volume Sales, 2013-2014
        • Table Refrigerated Dairy and Dairy Alternative Beverage Sales: Almond Milk vs. Dairy Milk, 2013-2014
      • Almond's Gain Is Soy's Loss
      • Coconut Milk Also Strong
        • Table IRI-Tracked Dairy and Dairy Alternative Beverages Sales: Almond Milk, Coconut Milk, and Soy Milk, 2013-2014
      • More Plant-Based Dairy Alternative Beverages Entering the Market
      • Some Dairy Products Shine
      • Dairy Industry Aims to Rebound
      • Can Coca-Cola Save Dairy Milk?
      • Organic Milk Demand
      • Locavore Movement Could Boost Raw Milk
      • Hispanic Influence Will Grow Market
      • Combination Product Developments Abounding
    • Market Growth
      • Traditional Milk, Premium, and Alternative Product Pricing
      • Market Projected to Top $31 Billion by 2019
        • Table Projected U.S. Retail Sales of Dairy and Alternative Dairy Beverages, 2014-2019 (millions of dollars, percent)
      • Almond Milk a Driving Force for Market Growth
  • The Marketers
    • Key Points
    • Marketer Trends
      • Coke Comes In
      • Hispanic and Good-for-You Products Will Draw Attention
      • Aiming for Niches Without M&A Action
    • Dairy and Dairy Alternative Beverages Led by Private Label
      • WhiteWave Leader of Branded Products
    • Private Label Brands Command Skim/Lowfat Milk Market
    • Whole Milk Also Dominated by Private Label Products
    • Nestlé's CoffeeMate Owns Coffee Creamer Category
    • Dean is Tops in Flavored Milk
    • WhiteWave Holds On in Almond Milk
    • WhiteWave Stands Out in Dairy Half & Half Market
    • WhiteWave Rules Soy Category
    • Private Label Nearly Half of Dairy Cream Market Leader
    • Lifeway Owns Kefir Market
    • Dr. Pepper/Snapple Milkshakes/Non-Dairy Drinks Market Leader
    • WhiteWave Also Leader in Coconut Milk
    • All Other Milk Substitutes
    • Hain Celestial Leads in Yogurt Drinks
    • Selected Marketer Snapshots
      • Over Half of Refrigerated Competitors Active in Single Category
        • Table Marketer Participation by Refrigerated Categories, 2014
        • Table Marketer Participation by Shelf-Stable Categories, 2014
      • WhiteWave Foods Company
        • Table WhiteWave Dairy and Dairy Alternative Beverage Brands by Segment
      • Dean Foods
        • Table Dean Foods Dairy and Dairy Alternative Beverage Brands by Segment
      • Nestlé
        • Table Nestle Dairy and Dairy Alternative Beverage Brands by Segment
      • Blue Diamond Growers
      • H.P. Hood
        • Table HP Hood Dairy and Dairy Alternative Beverage Brands by Segment
      • Borden Milk Products
        • Table Borden Dairy and Dairy Alternative Beverage Brands by Segment
      • Dr. Pepper/Snapple Group
      • Hiland Dairy Foods
        • Table Hiland Dairy and Dairy Alternative Beverage Brands by Segment
      • Lifeway Foods
        • Table Lifeway Foods Dairy and Dairy Alternative Beverage Brands by Segment
      • Organic Valley
        • Table Organic Valley Dairy and Dairy Alternative Beverage Brands by Segment
      • Prairie Farms Dairy
        • Table Prairie Farms Dairy and Dairy Alternative Beverage Brands by Segment
      • Simply Asia
      • Turtle Mountain
        • Table Turtle Mountain Dairy and Dairy Alternative Beverage Brands by Segment
      • Hain Celestial
        • Table Hain Celestial Dairy and Dairy Alternative Beverage Brands by Segment
      • La Vaquita
  • New Product Trends
    • Key Points
    • `Tis the Season
      • Table Selected Seasonal/Limited Edition Dairy and Non-Dairy Milk Products
    • Flavored Dairy Milks Deliver Novelty
      • Table Selected New Dairy Milk Products
    • Almond, Coconut, and Blends Lead Non-Dairy Trends
      • Acornmilk: It Could Happen
        • Table Selected New Non-Dairy Milk Beverages
    • Protein Power Shakes Up the Smoothie Category
      • Latin Flavors Spice Up Smoothies
        • Table Selected New Smoothie/Shake Products
    • Baileys, Coffee-mate Add Variety to Creamer Category
      • Table Selected New Dairy/Non-Dairy Creamer Products
  • Foodservice and Retail
    • Key Points
    • Retail Trends
      • Milk to the Rear
      • Why the Variety?
      • Retail Environment Divided
      • Energy Milk Drinks Could Be Big for Convenience Stores
    • Foodservice Trends
      • Give the People What They Want
      • Almond Breeze in Dunkin' Donuts
      • Waiting for McDonald's
      • Potential in Ethnic and Other Foodservice Establishments
  • Media, Advertising, and Promotions
    • Key Points
    • Key Role For Advertising in Current Market
    • The Dairy Industry Fights Back
      • "Milk Life" and "Get Real" Are Themes
      • The Chocolate Milk Campaign Gets Rolling
      • "Get Real" Social Media Hijacked
    • Will Fairlife Be The Next Almond Breeze or the Next "New Coke"?
    • Almond Breeze: Good Taste and Good For You
    • Advertising Expanding With New Products
  • The Consumer
    • Key Points
    • Methodology
      • Variance in Survey Methodologies
      • Favorable Demographic Indicators
    • Overall Consumption Trends
      • Over 90% of U.S. Households Use Milk Beverages
        • Table Liquid Milk Usage Trends, 2010-2014 (percent of U.S. households)
      • Three in Four Consumers Drink Dairy Milk
      • Yogurt Drink Consumption at an All-Time High
        • Table Yogurt Drinks/Smoothies Usage Trends, 2010-2014 (percent of U.S. households)
      • Non-Dairy Creamer Usage Also Hits High Point
        • Table Non-Dairy Cream Substitutes Usage Trends, 2010-2014 (percent of U.S. households)
    • Frequency of Consumption
      • One in Five Households Have Four to Six Servings of Milk Daily
        • Table Servings of Liquid Milk Used on an Average Day, 2010-2014 (percent of U.S. households)
      • Over Two of Five Dairy Milk Consumers Drink It Daily
      • Presence of Children the Dominant Factor in Heavy Milk Consumption
        • Table Demographic Indicators for Frequency of Liquid Milk Consumption, By Servings/Day, 2014 (index)
      • One in Four Non-Dairy Beverage Consumers Drink It Daily
      • Non-White Consumers Heavier Users of Refrigerated Dairy Alternatives
        • Table Demographic Indicators Favoring Use of Refrigerated Non-Dairy Milk, 2015 (percent)
    • Beverage Types Consumed
      • Low Fat Most Popular Type of Dairy Milk
        • Table Types of Liquid Milk Used Most Often, 2010-2014 (percent of U.S. households)
        • Table Types of Liquid Milk Used Also, 2010-2014 (percent of U.S. households)
      • Younger Households Above-Average Users of Most Milk Types
        • Table Demographic Indicators Favoring Use of Liquid Milk, By Types Used Most Often, 2014 (index)
      • Different Types of Premium Milk Used by Similar Types of Consumers
      • Non-Dairy Milk Consumers Opt for "Regular" Most Often
      • Almond, Coconut the Non-Dairy Varieties of Choice
      • Smoothie Preferences: Drinkable, Low-Fat, and Fruit Mixed In
        • Table Forms of Yogurt Drinks/Smoothies Used, 2011-2014 (percent of U.S. households)
        • Table Types of Yogurt Drinks/Smoothies Used, 2011-2014 (percent of U.S. households)
        • Table Kinds of Yogurt Drinks/Smoothies Used, 2011-2014 (percent of U.S. households)
      • Race, Children in the Home Strongest Predictors of Smoothie Use
        • Table Demographic Indicators Favoring Use of Yogurt Drinks/Smoothies, By Form Used Most Often, 2014 (index)
    • Non-Dairy Cream Substitutes
      • Regular Types, French Vanilla Lead in Creamer Use
        • Table Types of Non-Dairy Cream Substitutes Used, 2010-2014 (percent of U.S. households)
        • Table Flavors of Non-Dairy Cream Substitutes Used, 2010-2014 (percent of U.S. households)
      • Households With Children Favor French Vanilla Creamers
        • Table Demographic Indicators Favoring Use of Non-Dairy Cream Substitutes, By Flavors Used Most Often, 2014 (index)
    • Brands Used
      • Almond Breeze, Silk Overwhelmingly the Favored Brands in Refrigerated Non-Dairy
    • Preferences: Dairy Milks vs. Non-Dairy Milks
      • Taste Top Reason for Avoiding Dairy Milks
      • Demographics of Dairy Milk Avoiders
        • Table Demographic Indicators for Avoidance of Dairy Milk: Don't Like Taste, 2015 (percent)
        • Table Demographic Indicators for Avoidance of Dairy Milk: Allergy or Intolerance, 2015 (percent)
      • Taste and Health Top Reasons for Choosing Non-Dairy Milks
      • Half who Choose Non-Dairy Milk For Taste Have Some College Education
        • Table Demographic Indicators for Choosing Non-Dairy Milks Because They Taste Good, 2015 (percent)
        • Table Demographic Indicators for Choosing Non-Dairy Milks Because They Are Healthier, 2015 (percent)
    • Demographics: Food Attitudes and Opinions
      • Milk Consumers
        • Table Food Attitudes/Opinions, By Types of Liquid Milk Used Most Often, 2014 (index)
      • Yogurt/Smoothie Consumers
        • Table Food Attitudes/Opinions, By Yogurt/Smoothie Forms Used Most Often, 2014 (index)
    • Demographics: Health Attitudes
      • Milk Consumers
        • Table Health Attitudes, By Types of Liquid Milk Used Most Often, 2014 (index)
    • Yogurt Consumers
      • Table Health Attitudes of Drinkable Yogurt/Smoothie Consumers, 2014 (index)
    • Demographics: Watching Diet
      • By Type of Beverage
        • Table Presently Watching Diet, by Dairy/Dairy Alternative Beverages Used, 2014 (percent and index of U.S. households)
      • Reasons for Watching Diet
        • Table Reasons for Watching Diet, by Types of Liquid Milk Used Most Often, 2014 (index)
        • Table Reasons for Watching Diet: Consumers of Drinkable Yogurt/Smoothies, 2014 (index)
        • Table Reasons for Watching Diet: Consumers of Non-Dairy Cream Substitutes, 2014 (index)

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report