Recent reports indicate that the plant-based milk market experienced rapid growth, becoming one of the strongest consumer categories in recent years. However, its popularity has diminished significantly. Contributing factors include intensified competition and increased price sensitivity among consumers. Against the backdrop of slowing consumption of plant-based foods, many consumers are returning to traditional dairy products. Jean-Christophe Flatin, CEO of oat milk company Oatly, commented, “In the past, discussions around climate change or sustainability were often filled with pessimism and punitive implications, evoking extreme negative emotions... People have reached their limit with this; green marketing has gone too far.” According to data from Nielsen IQ, sales in the U.S. alternative dairy beverage sector fell by 4.4% last year, totaling $2.9 billion. This marks the first decline in four years for the industry, and the outlook for 2025 does not seem promising. The market value growth rate for dairy milk has significantly outpaced that of plant-based milk products, with various types of milk (including lactose-free and whole milk) witnessing a growth rate surpassing that of popular alternatives like oat, almond, coconut, and soy milk. Looking ahead, companies like Oatly (OTLY.US) have seen their stock prices plummet since their IPO in 2021, now trading in the low teens compared to a peak of $580. A similar decline is evident in Beyond Meat (BYND.US), whose stock price once approached $240 but is now below $1. As consumer interest in these products wanes, market trends are shifting towards high-protein and gut health sectors, driving mergers such as PepsiCo's recent acquisition of Poppi and Danone's attempt to acquire Lifeway Foods (LWAY.US), although the latter deal ultimately fell through.
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