This year, the plant-based milk category has been teeming with new offerings pointing to noteworthy rising trends in the dairy-free domain. We explore what’s stirring up the alt-milk market.
The alt-milk market has edged further into the mainstream than other plant-based dairy categories, such as cheese and yogurt. With 2023 research from Mintel highlighting that one in three people now consume plant-based milk, the offerings within this space are constantly evolving and being optimised to meet increasing demand for boosted nutrition, improved taste and sustainable ingredients.
Rodolfo Garza, global business development manager for milk and plant-based alternatives at DSM-Firmenich, describes dairy-free milk as the “golden child” of the plant-based segment, with sales outpacing those of meat, seafood and cheese analogues in Europe.
“In such a dynamic and crowded market, the task for brands now is to draw consumers to their offerings, especially as shoppers become ever more discerning about the features they want to see in plant-based milks,” he told The Plant Base.
“Unsurprisingly then, quality and diversification – both in terms of ingredients and positioning – are emerging as central themes. But what does this look like in the market? We’re seeing a big focus from consumers on plant-based milks that foam like cow’s milk so they can enjoy a latte or cappuccino while still staying true to their plant-based preferences.”
Barista-style options have been gaining traction in recent years, driven by consumer desire for higher-quality cups of creamy coffee while still dodging the dairy.
“The capacity to form and hold a rich, creamy foam with the right bubble size is what primarily sets ‘barista editions’ apart from typical plant-based milk alternatives,” Garza said. “At the same time, these solutions also need to boast improved pH stability to avoid curdling upon contact with acidic coffee. Beyond these more functional qualities, manufacturers must make sure their ‘milks’ deliver a delicious flavour and velvety mouthfeel, with no off-notes that can creep into plant-based products.”
DSM-Firmenich offers a Barista Toolbox, comprising a collection of enzymes, hydrocolloids, flavours and functional premixes to help producers achieve the required attributes to elevate the coffee-drinking experience within alt-milk formulations, navigating challenges around crafting a long-lasting micro-bubble foam, eliminating curdling and achieving the right levels of sweetness.
The last few months have seen a number of alt-milk brands in the US and Europe expanding their portfolio with new barista-level products, including Rude Health, The Coconut Collab, Oatly, OddlyGood and Califia Farms.
“Consumers are unwilling to compromise on taste or texture in their at-home experiences,” said Damien Threadgold, general manager for Califia Farms UK. “Barista-style options offer consumers the chance to recreate their favourite products at home, including unique taste profiles to elevate coffees and other drinks, such as smoothies.”
Califia Farms recently expanded its barista range to include an almond product, as well as an organic oat product in response to consumer demand for organic and sustainably sourced products.
Aside from sustainability, health remains paramount to many consumers and brands in the alt-milk space are under pressure to provide offerings that cater to shoppers’ health and nutrition preferences. In the barista segment, brands such as OddlyGood and Oatly have unveiled ‘light’ lower-calorie, low-fat and sugar-free options to fulfil these needs.
“Plant-based dairy offers its own unique contribution to an individual’s wider nutrition,” Califia Farms’ Threadgold pointed out. “Most plant-based dairy options have fewer calories than dairy, which was an initial pull for consumers. However, there are now more nutritional benefits that consumers are looking for.”
He pointed to the inclusion of protein as a significant consumer trend that the brand expects to see grow in plant-based alternative products.
“There are also products that look to replicate the nutrition of dairy, to satisfy those that are looking for a closer match to the benefits of a dairy product. In the US, we launched Califia Complete, a product that matches the benefits of dairy milk and continues to grow in popularity in this market.”
Califia Complete is made from a blend of pea, chickpea and fava bean protein, offering a nutritional profile that rivals that of diary: 8g of protein per 8oz serving, all nine essential amino acids, calcium, vitamins A, D and B12, magnesium, phosphorus, potassium and riboflavin. It also contains less sugar than its traditional dairy counterparts.
In Canada, dairy giant Lactalis has launched a brand-new plant-based brand, Enjoy!, dedicated to unsweetened and high-protein dairy-free beverages. It has introduced classic unsweetened oat, unsweetened hazelnut and unsweetened almond beverages among its portfolio, each also offering 8g of pea protein per serving.
Nathalie Cusson, general manager of Lactalis Canada’s fluid division, said that the new brand responds to demand for positive health impacts like high-protein alongside non-GMO and gluten-free certifications, as well as clean label requirements.
DSM-Firmenich’s Garza highlighted how emphasising specific health and nutritional properties linked to different consumer needs can be a strategy for brands to “rise above the noise” in a saturated market.
“Here, some are sticking to classics like protein content to address post-gym consumption occasions, while others branch out with vitamin, mineral and even adaptogen claims better suited to after-dinner or bedtime drinks,” Garza continued.
“In our view, the future of plant-based milks can best be described as a move from ‘speciality’ to ‘staple’. As generations Z and Alpha increase their spending power, their preference towards flexitarian diets will propel dairy alternatives into the default position, perhaps even overtaking cow’s milk as the coffee-shop favourite.”
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