Sunday, May 20, 2018

The Sneakerization of the Non-Dairy Milk Market

Does the "dairy case" in your local supermarket include rows of shelves with alternatives like soy milk and almond milk?

The increase in number and variety of non-dairy milk products illustrates the "sneakerization" of this market--meaning the proliferation of multiple products for microtargeting niche or microniche consumer segments. Ever-finer market segmentation for targeting small niches interested in specific types of products/benefits, in other words.

Even calling these products "___milk" can be controversial. But despite industry efforts like the long-running "Got Milk?" campaign (which morphed into "Milk Life"), consumption of traditional dairy milk is not going up.

In fact, many consumers are seeking out milk alternatives for health, nutrition, and lifestyle reasons.

Consumers are paying attention to these non-dairy milks and seeking out new choices, boosting demand for what was once a tiny niche. This is changing the makeup of the industry. For instance, adapting to this trend toward proliferation of non-milk products, one former dairy producer now makes peanut milk.

Sneakerization of this market means more competition among non-dairy milk products AND milk products, all seeking to improve market share, sales, and profitability.

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