“Softness on plant-based on the meat side happened some time ago and we’re starting to see it on the dairy side a little bit,” says John Crawford, Circana’s VP of client insights for dairy.
But there’s still strong consumer interest, particularly in plant-based milks and creamers.
Plant-based dairy is a roughly $4.5 billion category—5% of the total dairy segment, Crawford notes. But plant-based milks make up about 65% of that.
“It tails off,” he says. “Plant-based cheese is really, really small but has a lot of potential because cheese is such a huge category.”
Not only do plant-based milks cater to a wide range of consumers, who seek them out for a host of reasons, they also appear to be winning eyeballs in dairy cases, Crawford says.
While dairy milks are largely sold in plain packaging, alternative milks are appearing in vibrant cartons “that were really communicating the benefits of the product,” he says, adding, “Dairy milk missed the boat on it.”
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