The Downfall Of Dairy
If milk does a body good, plant-based milk alternatives must be good for the bottom line. And two recent investments bare that assertion out.
Consider this, according to the USDA, dairy milk sales have declined by 9.7% in the past five years. Conversely, sales of plant-based dairy alternatives continue to skyrocket — increasing 61% over the last five years. And the dairy decline doesn’t stop with milk, consumption of dairy-based ice cream is down, too (the Halo Top affect?).
As consumer preferences have shifted away from dairy, the sales of vegan ice cream, yogurt, and cheese have ticked steadily up. As a result, the global dairy alternative industry is expected to exceed $34 billion by 2024.
Given this context, a series of milk-related moves make a lot more sense.
Earlier this spring, Dean Foods—one of the largest dairy companies in the US—terminatedtheir purchasing agreements with 100 dairy farms across eight states citing decreased consumption among consumers. Then, in an effort to diversify their holdings beyond cow’s milk products, Dean’s acquired a majority interest (uping their initial investment) in Good Karma — a flax-based dairy brand out of Boulder, Colorado.
But flax isn’t the only dairy alternative cashing in on the move toward plant-based milk. Califia Farms—makers of popular dairy-free almond milk, plant-based yogurt, creamers, and coffee beverages—recently secured $50 million in funding to expand their drinkable yogurt offering while building a dairy-free empire.
As time goes on, Big Food and upstart brands will cater to a growing segment of the population, adopting veganism and corralling health-conscious millennials armed with $200 billion in spending power. Expect the shelves at your local supermarket to continually evolve. Where soy and coconut milk once seemed exotic, new dairy-free milk products made from oats and other dairy alternatives are already starting to feel ordinary.
Want to get in touch? Email email@example.com with tips, questions, or to continue the conversation.