Plant-based milk alternatives are losing ground in major markets as consumers increasingly return to traditional dairy, driven by concerns over price, nutrition and highly processed ingredients.
In the US, sales volumes of plant-based milk fell 5.4% over the past year, according to market-research firm Circana. Almond milk, the biggest-selling category, declined by 7.9%.
The trend is also visible in Europe. Volumes in Britain fell 2.5% in the year to June, while growth slowed in France, Italy, the Netherlands and Spain. Meanwhile, sales of dairy milk have begun to recover after years of decline.
Price and health concerns weigh on alternatives
Plant-based milks became mainstream during the 2010s, partly because consumers viewed them as a more environmentally friendly option than cow’s milk. But falling dairy prices in 2023 prompted some shoppers to reconsider their choices as household budgets came under pressure.
Health concerns are also reshaping the market. As consumers pay closer attention to ultra-processed foods and ingredient labels, some have become more cautious about the gums, oils, sugars and flavourings used in plant-based products.
Cow’s milk also contains considerably more protein than oat milk, while some plant-based alternatives contain more sugar. That has helped drive demand for high-protein dairy products. Arla, Europe’s largest dairy co-operative, said revenue from products such as quark and skyr has increased by around 25% a year since 2024.
Plant-based producers are responding by reformulating their products with added calcium, protein, iodine and vitamins, while some brands are highlighting lower sugar content or the absence of additives.
Novelty becomes the industry’s new strategy
Rather than competing directly with dairy, plant-based milk companies are increasingly trying to create products with their own identity.
Oatly has introduced flavours including popcorn and matcha, with matcha becoming its best-selling flavoured product since its launch in 2025. Alpro has also expanded its range of seasonal flavours following the popularity of its cinnamon-roll drink.
New products made from pistachios, pecans and barley are also appearing on supermarket shelves. Data from consumer-trends firm Tastewise shows growing interest in these alternatives, while interest in established oat, almond and cashew products has weakened.
The shift suggests that the next phase of the plant-based milk market may be less about replacing cow’s milk and more about creating new categories of drinks that can attract consumers on their own terms.
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