The plant-based dairy sector is experiencing a notable downturn in the U.S. market, with significant declines across various categories. According to SPINS data for the year ending April 20, 2025, the refrigerated plant-based milk market decreased by 4.1% in dollar sales and 4.5% in unit sales, totaling $2.4 billion. Shelf-stable plant-based milk also saw a decline of 2.9% in dollars and 4.7% in units, amounting to $308.92 million.
Despite the overall downturn, certain segments like coconut milk bucked the trend. Refrigerated coconut milk sales grew by 15.6% in dollars and 12.4% in units, while shelf-stable coconut milk increased by 28.2% in dollars and 33.2% in units. Refrigerated soy milk also saw modest growth, with a 2.7% increase in dollar sales and a 0.7% rise in unit sales.
The plant-based cheese category faced challenges as well. Refrigerated shredded plant-based cheese experienced a 1.5% decline in dollar sales, while sliced and snack cheeses dropped by 11.2% in dollars and 9.9% in units.
These trends suggest a shifting consumer preference, with some plant-based dairy alternatives struggling to maintain market share. Factors contributing to this decline may include taste preferences, pricing, and perceptions of processing levels in plant-based products.
Industry Insight:
The current market dynamics indicate a need for plant-based dairy producers to innovate and address consumer concerns regarding taste, nutrition, and processing. Focusing on product quality and transparency may help in regaining consumer trust and market position.
Source : Dairynews7x7 MAy 18th 2025 Food Navigator