3. Consider the alternatives
Nondairy items, such as plant-based milks, are rising in the category and deserve attention from retailers, Whitaker said. Dairy-free yogurts and enhanced almond milks have reached 6,500 immediate-consumption c-store and drugstores to date, he says. “People are becoming more comfortable with nondairy alternatives,” he said. “And that percentage is going up.”
Dairy alternatives are especially popular with millennials and Gen Z, who often purchase the items for both personal and environmental concerns, Whitaker says.
While flavor (48%) and price (37%) are the top purchase drivers for nondairy products, millennials and Gen Z are significantly more likely than their older counterparts to cite health and wellness, sustainability and animal concerns as reasons for consuming dairy products, according to a 2017 report by Comax Flavors, Melville, N.Y.