Since the 1970s, U.S. milk consumption has steadily declined. Meanwhile, sales of milk alternatives, with almond milk leading the way, have been growing.
But the dairy business is fighting back, stepping up efforts to promote the nutritional value of milk and push development of new milk products.
In 1993 the milk “moostache” made its debut with the “Got Milk” campaign which recruited celebrities to pose with foamy white upper lips to get more people drinking dairy.
In fact, the opposite happened.
The Department of Agriculture’s Economic Research Service calculates that between 1970 and 2012, consumption of fluid milk decreased from 25.3 gallons per person to 19.6 gallons per person — a drop of more than 77 percent. Americans are drinking milk less often with meals and consume less milk as they grow older. National food survey data shows that Americans born in the early 1980s drank milk about once a day as teenagers and about once every two days as adults — about half as much as the previous generation.
“Milk processors and the dairy industry are rising to the current challenges and taking a more proactive approach in the current competitive environment,” said Julia Kadison, the chief executive of the U.S. Milk Processor Education Program or Milk PEP. “We are dedicated to driving demand, building trust and increasing milk’s relevance with our MilkPEP programs, and there is a focus on three key areas, given the competitive landscape.”
Competition from other beverages such as soft drinks and bottled water is cutting into milk consumption, while dairy milk alternatives such as coconut milk, soy milk and almond milk are aggressively promoting themselves as healthier substitutes, even if nutritionists point out that dairy alternatives don’t have as much protein and calcium as cow’s milk.
Non-dairy milk substitutes increased their overall market share from 14 percent in 2010 to 20 percent in 2014, according to “Dairy and Dairy Alternative Beverage Trends in the U.S.,” a report issued in May by the market research firm Packaged Facts. Almond milk accounted for a big chunk of that trend with its sales growing by 40 percent. Coconut milk sales also increased by double digits. Packaged Facts also noted that leading producers of coconut and almond milk are succeeding with additional milk substitutes such as cashew milk and hemp milk.
As milk alternatives gain momentum, the dairy industry is changing strategies.
The industry is telling positive milk stories, reinvigorating innovation and focusing more on relevant consumer benefits, such as the current interest in the protein content of foods, Kadison said in an email. Milk PEP is focusing on correcting misinformation and telling positive stories about the nutrients and health benefits of milk, supported by research and credible third-parties, to promote the nutrient advantages of milk to a larger audience.
Processors are becoming more creative with flavors, textures and the product experience as they adapt to consumer trends, Kadison said. Nine in 10 Americans say it’s important to get enough protein in their diet, she said, and a cup of milk contains 8 grams of protein.
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