Milk's popularity decline opens door for alternatives

Milk consumption in developed countries is set to decline, opening further potential for milk alternatives, according to research released from Canadean.

The market research company’s long-term forecast to 2021 highlights dwindling consumption of white milk in the West between 2016 and 2021. White milk is defined as packaged, unflavoured milk from all animals.

Hardest hit will be North America, where a negative compound annual growth rate (CAGR) of almost 2% will reduce the market by two billion litres by 2021. Conversely, emerging markets are expecting an increase in white milk sales, led by the Middle East and North Africa region, where the market will expand at a CAGR of 4.9% in the same period.

Canadean attributes the contraction of white milk sales in developed markets to the rapid shift away from domestic breakfast consumption and concerns that the beverage is high in fat.

Milk alternatives such as soy milk are increasingly viewed as fashionable drinks and a more health-conscious choice compared to white milk. This trend is complemented by the growing popularity of veganism and increasing incidences of lactose intolerance in the general population.

“Consumers like innovation in their drinks, and this can be found in newer milk categories which appear to be more attractive than the mature white milk category. As such, soy milk and milk alternatives should expect to enjoy growth in every region in the world by 2021,” said Canadean beverage analyst Abigail Kendall.