
Vegan backlash gathers pace as old-school staple they said would die roars back
Vegan alternatives to meat and dairy have surged over the last two decades, as health and climate concerns pushed consumers away from traditional animal products.
Americans now drink half as much dairy milk as they did in the 1970s, with options like almond and oat milk capturing a growing share of the market.
But the tide may be turning.
Milk is making a comeback — and its plant-based rivals are seeing a sharp drop in sales.
Last year marked the first real increase in U.S. dairy milk consumption since 2009, according to NielsenIQ. That momentum has continued, with dairy milk sales up 3.5 percent in dollar terms for the year through May.
Meanwhile, plant-based milk sales have fallen 8.4 percent over the past two years.
Among the biggest losers is oat milk maker Oatly, whose stock has plummeted 98 percent from its 2021 highs.
'Milk is winning fair and square in the marketplace, which implies there could be legs to this,' Alan Bjerga of the National Milk Producers Federation told the Financial Times.
The turnaround can be largely attributed to the dairy industries willingness to switch tacts and give consumers the products they really want, the FT reported.
Many companies and farms have addressed animal welfare concerns that put many consumers off buying milk by offering organic and humanely raised options.
Many dairy producers have also made carbon net zero pledges to assuage climate concerns.
The industry has also leaned in to current health concerns about consuming enough protein and avoiding ultra-processed food.
Dairy marketing has emphasised its calcium and vitamin D credentials.
'Dairy milk has a very clean label while plant milk is more complex,' milk expert John Crawford of Circana told the FT.
Furthermore the milk industry is working to address the fact that an icreasing number of Americans are lactose intolerant.
Dairy companies have begun selling lactose-free and reduced milks with an added enzyme that breaks down the lactose.
The products are immensely popular with more sold in the US than the entire plant milk category.
US dairy companies are investing more than $10bn in dairy processing plants between 2023 and 2027 to help address these promises.
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