A new report published by Rabobank examines how the dairy industry can respond to the increased interest and success of the alternatives market. The report claims that now is the time for the dairy industry to reflect upon how they boost their businesses amid the growing sales of dairy-free products.
The report titled Dare Not to Dairy- What the Rise of Dairy-Free Means for Dairy… and How the Industry Can Respond looks at the routes that the dairy industry can go down. Global sales of dairy alternatives have grown at 8 per cent annually over the last ten years. Retail sales were valued at $15.6bn, alternatives to dairy milk “represented 12 per cent of total fluid milk and alternative sales globally in 2017, according to Euromonitor.”
Changing consumer views are the catalyst behind the rise in dairy alternative products, with health, lifestyle choices, sustainability and general interest in the products drawing consumers away from dairy. RaboResearch Senior Analyst Tom Bailey, said: “While it’s not essential to diversify into dairy alternatives, it would be wise for the dairy industry to at least learn one thing from the success of dairy alternatives, which may be putting the consumer first and trading in the old grass-glass model for glass-to-grass.”
According to RaboResearch, the results from the last five years show that businesses within the dairy industry have had more success when investing in dairy alternatives, whether it be buying brands or purchasing almond trees. These investments have shown returns higher than those who only trade in dairy.