All data included in the following category breakdown and subsequent charts were provided by Circana, a Chicago-based market research firm, and cover the previous 52-week period ending July 14, 2024.

It’s been a slow year in the dairy alternative space. Some blame inflation, while others say curiosity has weaned and consumers have returned to their old ways of tried and true real dairy.

Plant-based beverages, also known as milk alternatives, are the largest category. Circana reported that consumption in 2023 fell 6.6% to 337.7 million gallons. It’s the second straight year of declines and the lowest consumption since 2019.

The Good Food Institute (GFI) valued the category at $2.9 billion in 2023, representative of 14.5% of the “milk” category. In the natural channel, this figure is much larger, with plant-based milk representing 41% of dollar sales of all milk sold. This category alone accounted for 36% of all plant-based food dollar sales.

Milk alternatives have 44% household penetration and a 79% repeat rate of purchase, according to GFI. Households with children were more likely to spend extra on the plant-based milk category. This demographic trend was consistent in 2022 and 2023.

Plant-based creamers saw the most activity in terms of product introductions and dollar and unit sales. Unit sales grew 4% in 2023 and 14% since 2021, while conventional creamer unit sales declined 1% in 2023. Plant-based creamer’s market share of total creamer was 8%, according to GFI and Circana. This was the second-highest share rate among plant-based categories, behind plant-based milk. Similar to plant-based milk, plant-based creamer dollar sales were higher — nearly a third — in the natural channel.

Household penetration is growing, jumping from 11% in 2020 to 15% in 2023, with 65% of these households being repeat purchasers. This is the second highest rate of repeat purchase for plant-based categories, behind only plant-based milk, according to GFI.

Plant-based ice creams and frozen novelties were purchased by one in 10 US households in 2023, as reported by GFI. This category holds the fourth highest rate of household penetration (10%) among tracked plant-based categories, behind milk, meat and seafood, and creamer. Like other plant-based categories, younger consumers are the most likely buyers.

The cultured category has only a few players in the cream cheese, cottage cheese and sour cream alternative space. There are more brands in yogurt-style products — cups and drinks — and quite a few new players entered the category this past year.

Data show that 8% of households purchased plant-based yogurt in 2023, representing a 4% share of all retail yogurt sales. That number is almost 20% in the natural channel. Younger consumers and households with children were more likely to buy and spend more on plant-based yogurt.

Plant-based butter is a complicated category. It includes vegetable oil-based spreads, namely margarine, which have been around forever, as well as more sophisticated concepts. Miyoko’s Creamery, Sonoma, Calif., for example, offers European Style Plant Milk Butter made with organic cashew milk. It is cultured and churned using traditional creamery methods. The company recently rolled out Oat Milk Butter in cinnamon brown sugar and garlic parm flavors.

Source: Circana

| Image: Sosland Publishing Co.

Plant-based cheese continues to be the most challenging category. It represents barely 1% of all retail cheese sales, according to GFI. Seven percent of households purchased plant-based cheese in 2023 compared to 5% in 2020. Repeat rates were down. The percentage of buyers purchasing in the plant-based cheese category more than once decreased from 56% in 2020 to 49% in 2023.

At least one plant-based cheese manufacturer is defying the odds, sort of. A vegan blue cheese from Climax Foods, Berkeley, Calif., was selected as a finalist by the Good Food Foundation (GFF) for a Good Food Award back in January. This was the first time a plant-based cheese made it to the finals since being allowed to compete against dairy cheese five years ago.

A confidential letter sent to the company by GFF stated that the blue cheese would be crowned the winner, as reported by the Washington Post. But one week before the winners were to be announced, GFF disqualified Climax after a complaint about one of its ingredients.

It was not the proprietary blend of pumpkin seeds, lima beans, hemp seeds, coconut fat and cocoa butter that make up most of the product, but rather it was the kokum butter, which is a fat derived from the seeds of a fruit-bearing tropical tree called the kokum tree. While kokum butter has long been used in cosmetics, there’s little historical use of it in food. Thus, it may not meet the “generally recognized as safe” designation by the US Food and Drug Administration, a new requirement by GFF for the awards.

Alternative dairy maker Miyoko’s Creamery introduced two new Plant Milk Cheese Spreads, which the company launched at Sprouts locations throughout the country in June.

A plant-based cheese and butter manufacturer based in Northern California’s wine country, Miyoko’s Creamery said it formulated the new products to elevate daily recipes with taste, texture and vibrance.

“As pioneers in the exploration of non-dairy cheeses and butter, we are excited to enhance our presence through Sprouts’ locations, making our products more accessible to consumers in their neighborhood aisles,” said Stuart Kronauge, chief executive officer at Miyoko’s Creamery.

Category innovations

Nature’s Fynd uses fungi protein to make dairy-free yogurt. It is nutritionally dense with 8 grams of protein and 4 grams of fiber. The peach and strawberry yogurts feature only 8 grams of added sugar while the vanilla yogurt has 9 grams. They all are loaded with live and active cultures and are free from artificial flavors or preservatives.

Sweden-based Veg of Lund uses potato protein to make its new DUG brand of milk and creamer alternatives. The company said that unlike most plant proteins, potato protein has an excellent amino acid profile, with a biological value of 90 to 100.

GOOD PLANeT Foods was the first alternative cheese manufacturer to use olive oil. The company is now using the same technology to make sharp cheddar and smoked gouda slices.

Another go-to ingredient in the alternative space is soy, but it is also a common allergen. This is why Mighty Yum reformulated soy out of the turkey with cheese and ham with cheese Munchables lunch kits. The vegan meats and cheeses are now made with vegetables, such as parsnips, chickpeas, sweet potatoes and tomato puree.

Source: Circana

| Image: Sosland Publishing Co.