Two-thirds of U.S. shoppers said they have consumed milk in the past month. Additionally, when looking for a good source of protein, 32% of U.S. shoppers said they look for packaged foods that contain dairy, according to a 2025 report from St. Louis-based Nextin Research by MarketPlace.

Cow’s milk is a good source of protein, calcium, and vitamin D, all essential for bone health and overall well-being. New York-based Beverage Marketing Corp. reports U.S. milk volume sales ticked up +0.3% in 2024 after declining -1.6% in the prior year.

Chicago-based market research firm Circana reports U.S. consumption of whole milk rose by 3.2%, reflecting growing recognition of milk as a source of protein, hydration and healthy fats.

For the 52 weeks ending March 23, dollar sales of milk surged to $17.2 billion with year-over-year (YoY) growth of 3.2%, while unit sales dipped slightly at 0.3% with units of more than 4.9 billion, according to SPINS LLC, Chicago.

Yet, plant-based milk consumption declined about 6%, softening for the third consecutive year, according to Circana.

“The slowdown in interest could reflect growing awareness of the more complex ingredient list in plant-based drinks and the desire to reduce consumption of processed foods and beverages,” says Lisa Jackson, director of marketing at Kalamazoo, Mich.-based FlavorSum.

St. Louis-based IFPC’s Jennifer Adams, director of ingredient technology and applications, citing Innova Market Insights, notes that the milk market in North America is experiencing modest growth, with YoY increases of 3% annually from 2021 to 2025.

“Unflavored milk remains the leading subcategory, accounting for 60% of product launches in the United States. Flavored milk launches have fluctuated but saw a slight increase in 2024, with indulgent flavors like berry fruits and desert-inspired options gaining popularity,” Adams says. “Additionally, there is a growing consumer interest in health-focused milk products, with top claims including source of protein, low/no/reduced fat, organic, lactose-free and gluten-free.”

Milk also is a pivotal ingredient in ensuring the success of butter, cheese and yogurt. “We’ve seen more social discussions about the use of whole milk in a variety of products, from whole milk ricotta and Malia to horchata and tres leche cake,” Jackson adds. “Milk as an ingredient is contributing to the growth of milk-infused beverages like iced matcha lattes, kefir, and RTD (ready-to-drink) coffee lattes with a boost of protein from unfiltered milk.”

Especially with flavored milk options, new product development increased by 30% in the year ending March 2025, Jackson says, pointing out that social conversations about flavored milk bumped 12% during the same period.

“While chocolate, strawberry, and vanilla top the flavor launch leaderboard, people are exploring indulgent options through limited-time offers (LTOs), in foodservice, or through DIY (do-it-yourself) efforts,” she explains. “Profiles like chocolate caramel, cherry, praline, and strawberry shortcake are generating more social conversations. Gen Z is exploring grape milk recipes; it’s also available from regional dairies.”

Coconut top growth driver in plant-based milk

When it comes to protein, plant-based milks can’t measure up when it comes to the amount of protein, calcium, vitamins and minerals found in a glass of dairy milk. Yet, oat milk, almond milk, soy milk, etc., have some very loyal consumers.

However, there’s a new plant-based ingredient king: coconut milk. Both refrigerated and shelf-stable coconut milk were No. 1 for double-digit increases in dollars and units for the 52 weeks ending March 23, SPINS’ data reports. Refrigerated and shelf-stable coconut milk grew 14.5% and 27%, respectively, notching dollar sales of nearly $118 million and $38.3 million. Unit-sales wise, the coconut subcategory sold 27.5 million refrigerated units (11% growth) and 14 million shelf-stable units (33% growth).

While dollar sales declined 6.7% and unit sales dipped 7.2%, refrigerated almond milk reigns as the top category with $1.4 billion in dollar sales and nearly 377 million units sold. Refrigerated oat (-1.6%), soy (+2.5%), blends (-14.3%) and rice (-18.5%) saw dollar sales of $628 million, $193 million, 125.3 million, and $9 million, respectively.

The order was virtually the same with plant-based, shelf-stable milks — with almond and oat top dollar producers with dollar sales of $111 million (-13%) and $68 million (-7%). While refrigerated soy was No. 3, soy dropped to No. 5 on the shelf-stable side with dollar sales of $24.5 million, an increase of 6% over the prior year, per SPINS’ data.

Regina Draper, director of R&D for dairy and dairy alternatives at Wayzata, Minn.-based Cargill, suggests plant-based milk ingredients, including plant proteins, fat systems and texturizing ingredients, have come a long way, as have the resulting dairy alternative milks.

“Blends of oils improve the nutritional profile and creaminess, while newer plant proteins — like PURIS 2.0 pea protein — offer better solubility and flavor performance, enabling formulators to deliver more grams of protein per serving, without sacrificing taste or mouthfeel,” Draper explains. “On the texturizing front, ingredients like gellan gum, soluble fibers and our SimPure soluble rice flour help achieve the creamy mouthfeel traditionally associated with dairy milk, while supporting cleaner labels.”

When it comes to the hottest trends using milk as an ingredient, IFPC’s Adams reveals the following:

• High-protein milk drinks and RTD coffee creamers using whey protein concentrate (WPC) or milk protein isolate (MPI)
• Shelf-stable dairy using custom stabilizer and emulsifier blends
• Clean-label dairy blends — fewer ingredients, no carrageenan
• Incorporating collagen as an ingredient — beauty from the inside out
• Low-sugar milk formulations with allulose or natural flavors

“IFPC supplies the full system — proteins, hydrocolloids, emulsifiers, and sweeteners — to meet these evolving formulation needs,” Adams says.

The apex of innovation

Draper explains that as Cargill ingredient experts are using their toolbox more effectively, they’re pushing the limits on protein content, reducing saturated fat levels and shortening the number of stabilizers in a product. This results in improved nutritional profiles and more consumer-friendly labels, she says.

“But as good as our current crop of ingredients are, I believe we’re on the precipice of the next generation of plant-based ingredients that promise even better performance in taste, texture and functionality,” she adds.

Brands continue to innovate, with 17% more launches in items featuring plant-based milks in cold brews, protein shakes and meal replacements, FlavorSum’s Jackson states.

“Base exploration is also increasing, with pecan, pistachio, and buckwheat milks trending topics in social discussions,” she adds. “For people who want to avoid dairy, plant-based milks allow them to enjoy foods and beverages that are increasingly popular like lattes and skyr yogurt. Some food service bakeries now offer croissants, cheesecakes, muffins, and pastries crafted with plant-based dairy ingredients.” DF