The global plant milk industry, projected to reach US $21 billion in 2026, has been steadily gaining more of dairy’s market share in recent years. Rising consumer concerns about the environmental impact of cow’s milk and the growing veganism movement have led more people to opt for plant milks, including in their coffee.
Oat milk once dominated fridge shelves of specialty coffee shops, with baristas and customers alike preferring it for its neutral, creamy taste that didn’t overpower the nuanced flavours in coffee.
A recent backlash over its nutritional value, however, has led many consumers to turn away from oat milk and seek out other products that offer both quality and health benefits.
This shift has challenged plant milk brands to find new ways to meet changing consumer demand for sustainability, functionality, and flavour – spurring innovation and bringing new plant-based ingredients into the spotlight.
I spoke to Christopher Robertson, COO and co-founder of Swedish pea milk manufacturer Sproud, to find out more.
You may also like our article on whether defaulting to oat milk actually worked for coffee shops.
An increasingly saturated plant milk market
The global plant milk market has grown significantly over the last decade for a number of reasons.
The vegan diet and lifestyle, which avoids the use and consumption of animal products – including meat, eggs, and dairy – continues to gain momentum and is one of the main drivers behind market growth. In early 2024, there were 2.5 million self-identified vegans in the UK alone, up from 1.1 million in 2023.
Increasing awareness of the dairy industry’s environmental impact has also led many people to reduce or even eliminate their consumption of cow’s milk. Others are drawn to the naturally lactose-free content and perceived health benefits of plant-based milks, including lower levels of unsaturated fats that reduce the risk of high cholesterol levels and heart disease.
The shift away from dairy in recent years has caused demand for plant-based products to skyrocket across the board. Global retail sales of plant-based foods grew from US $21 billion in 2019 to US $29 billion in 2023, and alternative milks continue to hold the largest market share of all plant-based categories at 15%.
Brands have responded with an influx of new non-dairy milk products. Barista-formulated plant milks, designed to mimic dairy in terms of foamability, have emerged as popular options, catering to both home and professional baristas.
As a result, the plant milk market has become increasingly saturated. To resonate with today’s consumers, brands have to go beyond simply offering an alternative to dairy.
“You need to deliver on taste, nutrition, functionality, sustainability, and branding,” says Christopher Robertson, COO and co-founder of pea milk brand Sproud. “It’s about creating products and a movement that people want to be part of and can identify with.”
Once a top contender, oat milk faces scrutiny
For a long time, non-dairy options were seen as healthier alternatives to cow’s milk, which typically contains a higher level of fat than products like soy, almond, and oat milk. Recent advancements have also allowed plant-based products to perform at the same level as dairy when steamed and poured as latte art.
Oat milk quickly became a stand-out option in the late 2010s for its neutral flavour and creamy mouthfeel that closely mimics dairy. Following its rapid growth in popularity, some major specialty coffee brands made it the default option in their cafés, claiming it outsold cow’s milk in many locations.
However, the health benefits of oat milk have recently come under question. There have been growing concerns over its nutritional value, such as its fast-releasing carbohydrates, low protein content, and artificial additives.
Research also suggests that finely processed oats, like those in oat milk, may lead to sharp blood sugar spikes shortly after consumption.
These recent health scares have caused oat milk to quickly fall out of favour with increasingly health-conscious consumers, with demand dropping 1.8% from 2023 to 2024.
Consequently, sales of other plant milk options like almond and soya are also down 7.4% and 3.5%, respectively, losing traction as health-conscious consumers become more cautious.
“As consumers become more informed, they’re questioning the nutritional value of their go-to options, especially concerning products that spike blood sugar,” Christopher says. “Many are now realising that most oat milks contain as much sugar as juice or soft drinks.”
This growing awareness presents an opportunity for alternative milk brands to offer healthier products while still prioritising quality, flavour, and performance.
A renewed focus on sustainability and health
In the years following the pandemic, coffee consumer behaviour has fundamentally shifted as more people prioritise wellbeing and sustainability.
Today’s consumers, especially millennials and Gen Z, are increasingly aware of how their choices impact both their health and the environment. Their spending habits indicate this shift, as clean-label products saw an 8% increase in the last year, according to research from Nielsen.
Misconceptions about plant-based products still persist, however.
“Being plant-based doesn’t automatically mean it’s sustainable or healthy,” says Christopher. “I think consumers today seek indulgence without compromise, making sustainability and health non-negotiable factors.”
While plant milk options generally have a lower environmental impact than dairy, they still bring about certain challenges.
“As awareness grows, people are paying closer attention to the sugar and carbohydrate content in plant-based products, like oat milk, as well as environmental concerns regarding soy and nut milks,” Christopher adds.
Although it’s rich in vitamins A, C, and E, almond milk is notorious for its high water usage. It takes up to 23 gallons of water to make one gallon of almond milk, and its production also contributes to higher rates of eutrophication (where excess nutrients pollute bodies of water).
Rice milk is a low-fat and low-protein option, yet it requires almost as much water as almond milk and generates the highest amount of emissions among all types of plant-based milks.
Meanwhile, oat and soy milk production is known for producing high emissions levels. Many oat milk brands also use sunflower or rapeseed oil, both of which require extensive processing, increasing their carbon footprint.
Soy milk is free from cholesterol, low in fat, and can be fortified with essential vitamins and calcium. However, soya beans are a common allergen for adults and children, making them a less inclusive option.
New market contenders have emerged
Plant milk brands must find ways to stand out in an increasingly crowded market by focusing on environmental impact and health benefits without sacrificing quality and performance. This has pushed manufacturers to seek out new ingredients and diversify their products.
Pea milk has recently become a strong contender because of its neutral taste, creamy texture, nutritional value, and sustainability – touching on all aspects that consumers demand.
Unlike other dairy alternatives, pea milk is produced by extracting protein from yellow split peas and combining it with water and other ingredients. This results in a high-protein, low-sugar beverage free from saturated fats, making it an appealing choice for health-conscious coffee drinkers who still value flavour and performance.
To cater to this evolving consumer demand, Sproud recently launched its new Barista Zero range, which contains no added sugar or sweeteners.
“Today’s consumers are more conscious than ever about what they put in their bodies,” Christopher explains. “By removing added sugar and sweeteners, Barista Zero delivers a clean, natural experience that resonates with their evolving health priorities.”
Pea milk also has a low carbon footprint since yellow split peas require minimal water, support biodiversity, and produce low amounts of greenhouse gasses. Peas can also fix nitrogen in the soil, reducing the need for synthetic fertilisers.
Baristas and consumers still expect quality
Dairy alternatives are currently in the spotlight due to rising concerns over their health benefits. Knowing this, more brands are prioritising improving the nutritional value of their products – driving innovation and diversifying the plant milk market.
According to the Nielsen NIQ BASES study, brands are almost twice as likely to grow overall sales when innovative product sales increase. This underscores the need for plant milk brands to develop new, differentiated products to remain profitable and cater to a wider range of consumer demands.
Simultaneously, plant milks must meet baristas’ high standards for flavour, texture, foamability, and the ability to pour crisp, high-contrast latte art. High-performing dairy alternatives should have an optimal protein-to-fat ratio for smooth, stable microfoam.
“Coffee shops can position Sproud‘s Barista Zero as the choice for health-conscious customers who don’t want to compromise on quality, offering ‘Zero cappuccinos’ that meet demand for health, sustainability, and flavour,” Christopher says. “The trend for no-sugar alternatives has been steadily growing, and we believe it’s here to stay.”
Plant milks can be a unique selling point for specialty coffee shops
Christopher emphasises that choosing the best plant milk for coffee is a simple yet effective way for cafés to elevate their menu and meet the rising demand for more health-focused options.
Sproud is also the first and only global food company to receive ISO 26000 status, which provides guidance to organisations on how to operate in socially responsible ways, including contributing to sustainable development and improving impact on workers, communities, and the environment.
“Our ISO 26000 status represents credibility. It proves our commitment to ethical business practices, sustainability, and social responsibility,” Christopher says. “For coffee shops, it shows that partnering with Sproud aligns them with a progressive, planet-positive brand. For consumers, it reinforces trust in a brand that consistently delivers on its commitments.”
Consumers are becoming more aware of the impact of plant milks on the environment and their health. This growing awareness has pushed brands to rethink the potential of dairy alternatives and sparked a wave of innovation in the market.
To succeed, plant milk brands must balance meeting consumer demands for sustainable, nutritious products with delivering the performance, taste, and quality that coffee professionals and enthusiasts expect.
Looking ahead, we can expect brands to continue to push the boundaries to create the best plant milks for coffee.
Enjoyed this? Then read our article on how national Latte Art Championships have embraced plant milks.
Photo credits: Simeon Frohm
Perfect Daily Grind
Please note: Sproud is a sponsor of Perfect Daily Grind.
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