Packaged Facts: Competition Between Dairy and Dairy Alternatives on the Rise

Dean Foods Co. creates first national branded fresh white milk, while almond milk sales are poised to spur market growth through 2019

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May 29, 2015, 02:07 ET

ROCKVILLE, Md., May 29, 2015 /PRNewswire/ -- The ongoing competition between dairy and dairy alternatives is only beginning to reach its apex and will continue to intensify over the next several years as consumers grow more comfortable with milk alternatives and scrutiny of dairy products escalates, finds market research publisher Packaged Facts in the report Dairy and Dairy Alternative Beverage Trends in the U.S.

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Recently the market has seen major U.S. milk producer Dean Foods Co. announce plans to create the first national branded fresh white milk through the consolidation of its more than 30 dairies under one brand label, DairyPure. The move is being made to combat issues in the milk industry. Looking ahead, industry battles will include the dairy forces stressing the protein levels of their products, along with other healthy added ingredients such as "ancient grains." More flavored milks will be introduced, including limited edition holiday and seasonal flavors. Also look for additional organic milk products, and for the dairy milk market to expand in other, more exotic ways. Not to be outdone, the dairy alternative segment will continue to launch new products and expand their marketing and advertising efforts to make sure the opportunity to gain ground doesn't slip away.

Presently, the market for dairy beverages is four times that of dairy alternatives. Nevertheless, the dairy alternative segment—lead by almond milk—has become the industry's clear rising star. Packaged Facts research shows that during the past few years the dairy alternative segment has been increasing its share of the overall market, with a compound annual growth rate (CAGR) of more than 12% as compared to the less than 2% CAGR of the dairy beverage segment.

Packaged Facts projects that the dairy and dairy alternative beverages market will achieve a CAGR of 6% for the five-year period ending in 2019 with sales reaching $32 billion, up by about a third from its 2014 level of nearly $24 billion. From 2015-2019, the driving force in growth will be the continued double-digit increases in sales for almond milk, which, by most industry accounts is still in its early stages of growth. The product is projected to increase from 5% of the overall market in 2014 (including both the refrigerated and shelf-stable categories) to 19% by 2019, with an anticipated CAGR of almost 41%.

Dairy and Dairy Alternative Beverage Trends in the U.S. covers the dairy and dairy alternative beverages sold through all types of retail outlets, including supermarkets, discount stores and supercenters, warehouse clubs, and mass merchandisers, as well as convenience stores, drugstores, health and natural food stores, dollar stores, farms and farmers markets. For more information or to purchase the report please visit: http://www.packagedfacts.com/redirect.asp?progid=87470&productid=8945813.

About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at www.PackagedFacts.com and are also available on www.marketresearch.com and www.profound.com.

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SOURCE Packaged Facts