It’s Nutty: Almond Milk’s Increasing Market Expansion

January 09 2014

Buying milk is not as easy as it used to be! Gone are the days when we would buy an important part of the daily staple very inexpensively as retailers used it to tempt buyers into their shops. Now we are assailed by choices of many different types of milk from coconut to soy. Is there anything in it?

A recent addition to the plethora of milk replacers or substitutes is almond milk. Unflavored almond milk has no animal fats, no soy, no lactose and is low in calories but many prefer the flavored versions which have sugars, gums and other additives. Silk almond milk has set itself against dairy milks as evident from the Silk almond milk carton, which affirmatively declares that "Dairy Milk is getting jealous!" This is an interesting marketing move, as by doing so, they are also taking market share from their own line of soy milks.


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So does almond milk sell well? Undoubtedly. In 2011 almond milk sales increased 79% and in 2013 sales surpassed those of soy milk! And how about pricing? In equivalent sizes, almond milk retails for 25% or more than dairy milk, so customers must be drawn by something other than price. Almond milk is touted as being better for your health, as there are concerns about the estrogen in soy, it appeals to consumers with lactose intolerance, and there is also a move within the natural and alternative community away from cow's milk. Consumers also want to know what they are drinking or giving their children contains no growth hormones or GMOs, which is a claim that Almond Milk fulfills and puts front and center.

All this begs the question of whether dairy milk will retaliate and, if so, how. The move towards alternative milks has been going on for years, and will only continue to pick up speed. It's part of the larger consumer trend towards having more control and knowledge about what they are eating, as well as the abiding Boomer interest in longevity. It has certainly been documented in countless surveys that Boomers seem to see death as an option, not an inevitability, and that they believe that good eating and heart health will help them live forever. Almond milk fits the anti-aging profile -- hence it's popularity with a large sector of the population.

Will the dairy industry be able to assure consumers that they are still the best choice for their health? Have they become too accustomed to US Government subsidies so that they have lost their competitive spirit? Only time will tell.

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