Non-dairy growing faster

Rabobank’s new report on dairy alternatives provides both insights and lessons for the dairy sector.

First, the insights:

• Dairy alternative global retail sales have been growing by 8% a year for the last 10 years and have now reached $15.6 billion.

• Dairy-free milk represents 12% of combined liquid sales.

• Dairy demand is growing at an overall rate of 2.5% a year, but drinking milk retail sales in West Europe have been falling by 3% a year to $18.6 billion and in the United States by 5% a year to $12.5 billion.

• 39% of dairy alternative sales are soy, with almond now up to a 68% share in the United States.

Second, the lessons:

• Dairy’s strengths are identified as nutritional value, clean label, natural fat, price competitiveness and taste.

• Dairy-free’s attractions include perceptions around health, sustainability, lifestyle choice and sustainability as well as curiosity.

• Nut allergies are seen as a possible concern, but many other alternatives are waiting in the wings – from barley, flax, oat and pea to canary grass, hemp and quinoa.