Plant Based Milk
Over the years, plant-based milk products have gained immense traction across the world. There are a lot of varieties including almond based, soy based, pea based, coconut based milk, and more.
Reason behind are key growth drivers (a) perceived health benefits, (b) increasing availability and production from new companies/health-startups, (c) surge in vegan-consumers, (d) growing popularity of organic oriented consumption, (e) increasing prevalence of lactose intolerance, (f) effective marketing and (g) higher margins pushing established players in the niche.
I read an excellent article on this category (although a bit old). One snippet that I liked and one graph which highlights a massive potential.
Those manufactured goods are a far more profitable business for most dairy processors. Fresh liquid milk requires fiendishly complex supply chains capable of delivering consumers a highly perishable product in consistent quantities from living animals in every corner of the country or beyond, while managing the short- and medium-term fluctuations expected in any commodity. It’s no coincidence that the milk market in most nations is one of the most heavily regulated and government-supported industries around.
While retail milk sales may be declining, the amount coming out of cows is still rising — and it’s the butter on your pancakes and the cheese in your omelette that’s driving it.
Soy milk has already minted a billionaire
Vitasoy (75+ years history) sells its products in 40 markets, from the U.S. to Australia, with mainland China accounting for more than half of its revenue. It is a supplier for big coffee brands like Starbucks, and has a very recognizable brand. Products are sold in convenience stores, supermarkets and online.
Startup - Sproud milk
Sproud Milk is part of the pea-based milk family. Founded in 2018, the Sweden-based startup () has expanded into 10+ international markets, including the U.S., the UK and Canada. It saw a whooping 90%+ YoY growth in revenue last year.
More on dairy
I wanted to dig deeper into the choices consumers are making and why. I stumbled upon McKinsey reports which are a bundle of knowledge on the topic (though reports are old - 2018).
For example: The published a nice chart on the why people choose non-dairy alternatives and what are the top reason for not choosing the same. Look below.
‘Taste difference’ chimes in very well to a recent podcast (’s) that I heard, in which tells how much he dislikes the taste of non-dairy and that coffee brands should offer consumers by default a dairy and plant-based choice rather than shifting directly all towards plant.
I also wanted to understand if there are additional differences between the milk varieties based on how they impact environment. I found this chart interesting.
Then another McKinsey report (one chart in particular) caught my eye. It’s not just about different milk types, rather consumers have started focusing on each individual content/nutrient type and started building opinions around sources and alternatives. Look at the difference in perception around Protein and Fat.