Dairy Alternative Beverages in the U.S.: Soy Milk, Almond Milk, Rice Milk and other Dairy Milk Alternatives

Packaged Facts estimates that total U.S. retail sales of dairy alternative beverages reached $1.33 billion in 2011.

Plant-based milks have a long history in both Eastern and Western cultures, with references found in early European cookbooks as well as Oriental literature from the 1500s. Derived from soy, oats, nuts, seeds, legumes, hemp, rice and others, plant milk is a generalized term without legal description or qualifiers. There are a number of varieties of plant milks offered in the retail market, and there are other plant milks not yet produced commercially that have the potential to impact the market in the future. Some of these milks are produced commercially in other countries and could possibly enter the U.S. market in the future.

Consumers choose plant-based dairy alternative beverages for numerous reasons. Health issues including lactose intolerance, milk allergy, and the genetic disorder phenylketonuria (PKU) can be addressed through the consumption of dairy alternative beverages because these plant-based milks are free of animal proteins, in particular casein. Others who are primary consumers of dairy alternative beverages include vegans, vegetarians and people concerned about antibiotics or growth hormones often found in cow’s milk.

Currently, the most commonly known and popular of the commercial plant milks is soymilk. Following in consumer recognition and consumption are almond milk, rice milk and coconut milk, in that order of preference. Additionally, hemp milk, oat milk, hazelnut milk, flax milk, sunflower milk and multigrain milk are available at the retail level, although they enjoy only a very minor market share. Quinoa, lupine, pea, peanut, cashew, and sesame are also used to make RTD plant-based milks in countries other than the United States. These products carry the potential to enter the U.S. market at a later date on a commercial scale, either through domestic production or importation.

The various types of plant-based dairy alternative beverages are available in an array of formulations. These include: flavored, sweetened, unsweetened, low-fat, lite, fortified, and others that are manufacturer-specific, including blends formulated to address specific qualities such as promoting heart health, digestive health, energy, and calcium absorption.

Scope of Report

This report examines the U.S. market for plant-based, ready-to-drink (RTD) beverages that are alternative substitutes for dairy milk, sold to consumers at retail. These products include beverages made from plant-based ingredients including soy, almond, rice, nuts, seeds, hemp and/or a combination of grains. These beverages do not contain any dairy products.

This report estimates and analyzes the size, growth rate, and composition of the plant-based beverage market. Historical sales data, as well as market forecasts to 2016, are provided for soymilk, almond milk, rice milk, coconut milk and hemp milk, as well as coverage of minor products such as flax, hazelnut, multi-grain, oat and sunflower milks. Strategic analyses of competitors in this market are included, as well as descriptions of recently introduced products. Trends and regulations influencing this market are discussed. Importantly, data from Packaged Facts’ extensive proprietary survey of consumer attitudes and usage trends relating to plant-based beverages are provided.

Table of contents

Chapter 1 Executive Summary

Scope and Methodology

Scope of Report

Exclusions

Report Methodology

The Products

Consumer Health Awareness Drives Plant-Based Beverage Market

Marketers of Plant Milks Focus on “Natural” and “Organic” Products

Dietitians Heartily Support the Health Benefits of Plant-based Beverages

Plant Milks Have Been Consumed for Centuries

Consumers Choose Plant-Based Milks for a Number of Reasons

Soymilk

Health Impact

Almond Milk

Rice Milk

Hemp Milk

Coconut Milk

Additional Varieties of Dairy Alternative Beverages

Size and Growth of the Market

2011 U.S. Retail Sales Estimated at $1.33 Billion for All Dairy Alternative Beverages

Table 1-1 U.S. Retail Sales of Dairy Alternative Beverages, 2010-2011 (in millions of dollars)

2011 U.S. Retail Sales Estimated at Just Under $500 Million for Leading Refrigerated Dairy Alternative Beverages

Table 1-2 U.S. Retail Sales of Leading Refrigerated Dairy Alternative Beverages, 2010-2011 (in millions of dollars)

2011 U.S. Retail Sales Estimated at $115 Million for Leading Shelf-Stable Dairy Alternative Beverages

Table 1-3 U.S. Retail Sales of Leading Shelf-Stable Dairy Alternative Beverages, 2010-2011 (in millions of dollars)

Packaged Facts Projects 2012 U.S. Retail Sales of Dairy Alternative Beverages at $1.38 Billion

Table 1-4 Projected U.S. Retail Sales of Dairy Alternative Beverages, 2012 (in millions of dollars)

U.S. Dairy Alternative Beverage Retail Sales Projected Exceed $1.7 Billion in 2016

Table 1-5 U.S. Retail Sales of Dairy Alternative Beverages, 2007-2016 (in millions of dollars)

The Marketers

Private Label Products Move Front and Center

Marketers Introduce Single-Serve Dairy Alternative Beverages

The Dairy Alternative Beverage Market Primarily Comprises Small, Private Companies

Marketers of Dairy Alternative Beverages Respond to Consumer Health, Social and Ethical Concerns

Regulatory Policy and Legislative Issues

The Food and Drug Administration Endorses the Health Benefits of Soy

The Role of Isoflavones in Health

The Food Allergen Labeling and Consumer Protection Act of 2004

The USDA Position on the Term “Natural”

The USDA Requirements for a Food or Beverage to Be Labeled “Organic”

National Milk Producers Federation Petitions the FDA to Prohibit Use of the Word “Milk” Relating to Plant-Based Beverages

Trends and New Products

51 Dairy Alternative Beverages Introduced to the U.S. Market Between January 1, 2007 and December 31, 2011

Table 1-6 Number of Dairy Alternative Beverage Product Introductions in the United States, 2007-2011

New Packaging Technologies

Dairy Alternative Beverages Enter the Espresso Mainstream

The Consumer

Consumers Have Increased Consumption of Dairy Alternative Beverages in the Past Five Years, With a Shift From Soymilk and Rice Milk to Almond Milk

Almond Milk Gaining on Soymilk for Most Popular Dairy Alternative Beverage

Table 1-7 Response to Question: “Which Milk Alternatives Do You Drink/Use?,” 2011 (percent)

Half of Product Users Consumed Soymilk Five Years Age, Compared to 21% Who Consumed Almond Milk Five Years Ago

Table 1-8 Response to Questions About Milk Alternative Consumption Trends, 2011 (percent of product users)

Consumption of All Dairy Alternative Beverages Increases Substantially from 2006 to 2011, With Almond Milk Seeing the Biggest Gain

Table 1-9 Response to Questions About Milk Alternative Use Five Years Ago, 2011 (percent of product users)

Silk Soy Milk Leads the Pack As the Dairy Alternative Beverage Purchased Most Often by Consumers

Table 1-10 Response to Question: Which Brand(s) of Milk Alternatives Do You Purchase Most Often?, 2011

Chapter 2 The Products

Key Points

Scope and Methodology

Scope of Report

Exclusions

Report Methodology

Overview

First Plant-Based Beverage Introduced in 1983

Consumer Health Awareness Drives Plant-Based Beverage Market

Marketers of Plant Milks Focus on “Natural” and “Organic” Products

Dietitians Heartily Support the Health Benefits of Plant-based Beverages

Ready Availability of Information on Nutrition and Ingredients Encourages Consumers to Choose Good-For-You Products

Plant Milks Have Been Consumed for Centuries

Consumers Choose Plant-Based Milks for a Number of Reasons

Concern about Cholesterol and Fat in Dairy

The Marketing of Plant-Based Beverages

Nutritional Comparison of Plant Milks

Table 2-1 Nutritional Comparison of Selected Plant Milks

Advances in Packaging Technologies

Package Labeling and Graphics Quickly Provide Vital Information for Consumers

New Size Options for Dairy Alternative Beverages

Soymilk

Origins of Soymilk

Synching Up with Natural/Organic

The Greening of Soy

Health Impact

Table 2-2 Nutritional Comparison of 2%-fat Cow’s Milk to Unsweetened Soymilk

Source: Packaged Facts

Soy Beneficial for Prostate Health and Menopausal Symptoms

Soymilk Production

Not All Soymilks Are Made Equal

Soymilk Varieties

Table 2-3 Selected Soymilk Manufacturers and Their Brand Names

Almond Milk

A Brief History of Almond Milk

Overview

Almond Milk Is Fastest Growing Category Among Dairy Alternative Beverages

Table 2-4 Nutritional Comparison of 2%-fat Cow’s Milk to Unsweetened Almond Milk

Calcium Content in Dairy Milk vs. Almond Milk

Almond Milk vs. Soymilk

Almond Milk in the Prevention of Heart Disease and Osteoporosis

The Production of Almond Milk

Not all Almond Milks Are Made Equal

Almond Milk Flavors

Table 2-5 Selected Almond Milk Manufacturers and Their Brand Names

Rice Milk

The Advantages of Rice Milk as a Dairy-free Alternative

Calcium Content

Table 2-6 Nutritional Comparison of 2%-fat Cow’s Milk to Unsweetened Rice Milk

Dietary Advisories About Rice Milk

Concerns About Arsenic Levels in Rice Milk

How Rice Milk Is Manufactured

Ingredients in Rice Milk

Common Rice Milk Flavors

Cooking with Rice Milk

Selected Rice Milk Manufacturers and Their Brand Names

Table 2-7 Selected Rice Milk Manufacturers and Their Brand Names

Hemp Milk

A Brief History

Overview

Nutritional Advantages of Hemp Milk

Comparing Hemp Milk to Dairy Milk

Table 2-8 Nutritional Comparison of 2%-fat Cow’s Milk to Unsweetened Hemp Milk

Nutrition in Hemp Milk

Table 2-9 A Comparison of Amino Acid Content in Hemp Seeds and Cow’s Milk

Additional Nutritional Pluses of Hemp Milk

Figure 2-1 The Nutritional Composition of Hemp Seeds

Hemp Milk, Diabetes, and Cardiovascular Disease

The Production of Hemp Milk

Ingredients in Hemp Milk

The Flavors of Hemp Milk

Table 2-10 Selected Hemp Milk Manufacturers and Their Brand Names

Coconut Milk

Origins of Coconut Milk

Health Impact

Comparing Coconut Milk to Dairy Milk

Table 2-11 Nutritional Comparison of 2%-fat Cow’s Milk to Unsweetened Coconut Milk

Table 2-12 Nutritional Profile of Unsweetened Coconut Milk </DD

Tweet

Related research categories

By sector: Dairy (in Soft drinks), General drinks

By market: United States (in North America)