Dairy Alternative Beverage Sector Hits $1.33 Billion

NEW YORKConsumer concern for health issues, including lactose intolerance, milk allergy and the genetic disorder phenylketonuria (PKU), are driving the market for dairy alternative beverages like soy milk, almond milk, rice milk and other plant milks, which reached $1.33 billion in retail sales in 2011, according to a new Packaged Facts report.

According to the Dairy Alternative Beverages in the U.S." report, many consumers are increasingly turning either to non-caloric beverages or to non-traditional beverages with novel nutritional characteristics or benefitsthe latter a positive trend for the dairy alternative beverages market. Consumers are looking for dairy beverages free of animal proteins, in particular casein. Prime consumers of dairy alternative beverages also include vegans, vegetarians and people concerned about the antibiotics or growth hormones often found in cow's milk.

Various types of plant milks are available in many formulations, including flavored, sweetened, unsweetened, low-fat or non-fat, and fortified varieties, as well as blends formulated to address specific health concerns such as heart health, digestive health, energy, and calcium absorption.

Data reveal that 54% of U.S. adults who purchase soymilk do so because of the nutritional characteristics of this beverage, and 43% do so because of nutritional advantages related to specific personal or household health concerns.

Almond milk was the dairy alternative beverage that posted the biggest dollar sales gains in 2011. According to the report, almond milks popularity is driven by its palatable flavor, and rich source of unsaturated fat, protein, omega fatty acids, iron, calcium, potassium, magnesium, zinc, vitamin A and vitamin E.

While soymilk remains the single most popular single type of dairy alternative beverage, with 11% of adults as consumers, almond milk is now close behind in popularity at 9%.  Moreover, 62% of adults who use almond milk are drinking this beverage somewhat more often or much more often than they were five years ago. The almond milk segment, which now accounts for 21% of the retail market for dairy alternative beverages, saw sales increase by 79% in 2011.

Competition also has increased as private-label brands have been slotted side-by-side with leading brands. The introduction of single-serve dairy alternative beverages also has created broader opportunities for beverage manufacturers to reach a larger market.