Competition is Reshaping the Milk Business

June 2018 -


Key Points

  • Consumer lifestyle changes and cultural shifts are the main drivers behind declining fluid milk demand. Meanwhile, sales of plant-based milk alternatives have surged in recent years.Milk and alternatives sales
  • Sales of plant-based milk alternatives should continue to grow by 15 to 25 percent by 2022. But, given the small size of the market, further expansion of plant-based milk sales will play only a minor role in the decline of fluid milk consumption.
  • New value-added and niche dairy products are slowing the rate of decline in milk sales in a highly competitive beverage market.
  • As cow’s milk differentiates itself into a variety of premium products, supply chains will be challenged to handle smaller volumes of a wider selection of products.
  • Plant-based milk alternatives will hasten change in the dairy industry as marketing costs and slotting fees increase across the dairy case and further pressure the already low-margin gallon-jug business.

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