6 August, 2025 – Dairy milk has health properties that consumers are looking for. These include protein and vitamin D. Also, milk is not highly processed. Despite these features, however, sales of dairy milk are declining. Certain types of innovation help maintain share for dairy milk. These include ultra-filtered dairy milks that have a higher protein content along with less sugar. Another innovation is UHT processing. This supports longer shelf life. Still, high prices are a barrier, especially when prices of other food and beverage products are going up and putting strain on consumer budgets for groceries.
Non-Dairy Milks are Growing
Growth in non-dairy milks is notable, but it does not offset the decline in dairy milk. This means that consumers are not trading dairy milk for non-dairy milk. Dairy milk and non-dairy milk have different purposes and users in households. Innova Market Insights is monitoring increased market share of particular non-dairy milk bases. But the market can support only a certain number of non-dairy milk choices before brands steal each other’s shares. Brands are competing for US consumers and their dollars today, as well as long-term into the future as a milk category. Non-dairy milk products are evolving to overcome market saturation. Some of their directions are fortified non-dairy milk shakes and non-dairy milk drinks that have high nutrient concentrations. Even with this evolution, most non-dairy milk launches are standard non-dairy milk products.
Breakfast is Time for Milk
Innova Market Insights consumer trends research suggests that US consumers have dairy milk and non-dairy milk mainly at breakfast time. According to US consumers, breakfast is named as the top occasion for dairy milk and non-dairy milk by two-thirds of those researched. This contrasts with consumption of dairy milk and non-dairy milk at other occasions, which is named by just one-third of US consumers.
This means that dairy milk and non-dairy milk have room to grow at other eating occasions, for example, snacks or meals requiring recipes. Dairy milk and non-dairy milk can differentiate themselves based on taste and texture. They also can demonstrate to US consumers the different ways to use dairy milk and non-dairy milk, for example, to add nutrition to a meal, to take along as part of a snack on the go, or to find new ways to enjoy dairy milk and non-dairy milk during the day. Adding dairy milk or non-dairy milk to simple recipes will increase consumer use of these products and require more frequent purchases.
More Protein, Less Sugar in Dairy Milk and Non-Dairy Milk
Consumer trends research conducted by Innova Market Insights shows US consumers want more protein in their diet. This desire supports the addition of more protein to dairy and non-dairy milks and promoting higher protein content with label claims. Protein represents an opportunity area for dairy milk and non-dairy milk because under half of launches have a protein claim on the package label.
Consumer trends research conducted by Innova also shows that US consumers want less sugar in their diet. A solid proportion are trying to cut back on added sugars so dairy milk and non-dairy milk have the opportunity to reach these consumers with lower sugar products.
Premium Pricing Presents Problems
Premium pricing for new and innovative dairy milk and non-dairy milk products presents challenges for growth in these products. Products may be promoted heavily with higher marketing budgets to expose consumers to the new products and give them suggestions for use. But in the long run economies of scale are necessary to lower prices because consumers are concerned about increases in grocery prices in recent years.
Shake, Shake, Shake
Market launch tracking by Innova Market Insights shows a proliferation of dairy and non-dairy shakes that are high in protein and available in indulgent flavors such as chocolate chip cookie. This helps dairy milk and non-dairy milk to compete with other drinks such as high protein sports drinks, yogurt drinks, and soft drinks with protein claims.
What’s Next in Dairy and Non-Dairy Milk?
Dairy milk and non-dairy milk face several challenges and opportunities. Ultra-filtered milk has more protein and less sugar, and it’s lactose-free. It is growing in the milk category but its price is noticeably higher than conventional milk, and this could deter consumer purchases. Innova predicts that market share of ultra-filtered milk will grow only if brands can lower prices to match regular dairy milk. The challenge for plant-based non-dairy milk is competition and crowding. To stand out, plant-based milks need to showcase their nutrition content, create products for different age demographics, such as kids and older adults, and make claims on-package. Dairy milk and non-dairy milk products that are nutrient-dense with protein, added fiber, and added vitamins and minerals could appeal to GLP-1 users and consumers who are looking for more protein, fiber, and nutrients in their diet. Another selling point could be the longer shelf life of UHT dairy milk and non-dairy milk. Consumers can be encouraged to buy extra to keep at home since it doesn’t spoil as quickly.
Innova forecasts that dairy milk and non-dairy milk volume will continue to go down in the coming years. Consumer attitudes and lifestyles have changed. Families are serving milk less often and children are drinking less milk. Even though sales of non-dairy milks are up, they are not offsetting dairy milk declines because consumers do not see them as swaps for each other. It’s time for milk to become a staple again in US households, delivering different nutrition solutions to meet different needs.
This article is based on Innova’s Milk & Non-Dairy Milk in the US report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more