Dive Brief:
- While plant-based dairy has posted strong growth overall in recent years, soy milk hasn't been on the same trajectory. After a peak of $1.2 billion in 2008, U.S. sales plunged 57% by 2015, according to Euromonitor data.
- WhiteWave Foods, a leader in the space and Danone's recent acquisition, hasn't been immune to soy milk's downfall. Sales for WhiteWave’s Silk soy milk brand fell by more than half from their peak of $558 million in 2008 to $242 million last year.
- At the same time, sales for other non-dairy milk alternatives are soaring, such as almond milk with almost 14-fold growth to $1.4 billion in U.S. sales since 2008. Silk's almond milk sales more than tripled from 2011 to 2015 to about $500 million.
Dive Insight:
One of soy milk's main challenges is soy itself. In the U.S., more than 90% of soy harvested is genetically modified, and consumers are increasingly turning away from GMOs.
The food and beverage industry is currently awaiting the president's decision on a bill Congress passed earlier this month that makes GMO labeling mandatory nationwide, but gives manufacturers a few options for implementation. Depending on how the law pans out, bearing a GMO label could be another knock to soy milk sales in the future.
Soy milk also struggles against the health benefits promised by its main plant-based dairy competitors. Under the Silk brand, a cup of almond milk has 50 fewer calories and two less grams of fat than the brand’s original soy milk, Fortune reported.
And it's not just almond milk that soy milk has to worry about. Silk’s coconut milk pulled in just $45.7 million in U.S. sales last year, but that represents growth of almost 150% since 2011.
Startups are also playing a major role in the growth of plant-based dairy. Ripple, manufacturer of pea-based milk, is poised to disrupt the plant-based dairy category by offering additional health and sustainability benefits compared to category leaders like almond and soy milk.
In addition to Danone's recently-announced acquisition of WhiteWave, other major manufacturers recognize the potential for plant-based dairy. General Mills' 301 Inc. announced an investment in plant-based dairy producer Kite Hill in May.