Dairy milk is purchased by 91% of US households, with 48% purchasing non-dairy milk, and 66% cream and/or creamer according to Mintel research. Respondents are most likely to consume milk as an accompaniment to food or another beverage, as an ingredient when cooking, and as a beverage with breakfast. Milk can be presented as being more versatile to meet a variety of usage occasions. To do this, milk manufacturers should aim to expand usage to on-the-go occasions by creating flavors, packaging, and fortified varieties that can be used as snacks, treats, or post-workout drinks.

Dairy milk dominates the segment with 67.7% of market share, but consumer interest in non-dairy milk is growing, with almond milk sales surpassing that of soy milk for the first time. However, the other milk segment, led by plant-based milk brands, remains small and accounts for just 8.1% market share, according to SymphonyIRI Group multi-outlet sales data. Interest in coffee creamers is also seeing growth, with the segment making up 14.9% of market share. Dairy and non-dairy brands are competing in their own segments and against each other. However, Mintel research suggests that consumers are likely to be active across multiple segments purchasing a variety of dairy and non-dairy products, not just one.

This report builds on the analysis presented in Mintel’s Dairy and Non-dairy Milk – US, April 2013, as well as the April 2012 report of the same title and Milk – US, April 2010, as well as the May 2009, June 2007, May 2006, April 2003, and June 2001 reports of the same title.

For the purposes of this report, Mintel has used the following definitions:

There are varying MULO shares for various segments. Foodstore shares of MULO sales for each segment might suggest why; lowest are whole milk and coffee creamer while highest are flavored, other, and cream/half & half. In light of this, Mintel grossed up the coffee creamers by using the lowest MULO from the previous report, and cream/half & half by using the highest MULO. These two categories were last included in a 2011 report and were estimated based on FDMx. This update increases the value considerably due to the additional data available from MULO channel coverage.

Convenience stores and smaller grocery stores are the most significant non-MULO channels. These skew toward whole milk and 2% milk because these are more popular with consumers. Shelf-stable non-dairy creamer will also have somewhat wider distribution because it doesn’t require refrigeration.

Not included this year are powdered and condensed milks. Instead, coffee creamers and cream/half & half segments were added this year. Although eggnog, buttermilk, and kefir are included in the market size, they will not be covered in this report.

For the purposes of this report, Mintel has segmented the market as follows:

• Refrigerated skim/low-fat (1% and 2%) milk

• Refrigerated whole milk

• Refrigerated cream/half & half

• Refrigerated flavored milk/eggnog/buttermilk

• Other milk/milk substitutes, including ready-to-drink milk/milk substitutes, refrigerated kefir/milk substitutes/soy milk, and refrigerated milkshakes/non-dairy drinks

• Shelf-stable coffee creamer and refrigerated non-dairy creamer

Dairy creamer is defined as a dairy-based product designed to lighten the color and enhance the flavor of coffee; it may be flavored or unflavored.

Dairy cream is categorized by its milk fat content: half & half is a mixture of milk and cream that has a milk fat content of at least 10.5% but no more than 18%.

Light cream (eg coffee cream, table cream) has a milk fat content of at least 18% but less than 30%.

Because of the way products are grouped in the source data, heavy cream (whipping cream) is also included in the cream/half & half segment although it is not commonly used as a creamer.

Non-dairy creamer includes dairy-free products designed to lighten the color and enhance the flavor of coffee, such as Coffee-mate and Cremora. Soy-based creamer, such as WhiteWave’s Silk brand, is included, but “regular” soy milk is excluded. Non-dairy creamer may be flavored or unflavored.

Excluded from this report are milk flavorings; coffee and coffee mixes; syrups or other products used to flavor or sweeten coffee. Also excluded are specialty or European-style creams such as clotted cream, Devonshire cream, and double cream, as well as whipped toppings. Sales of milk, creamers, and non-dairy milk within the foodservice industry are also excluded.

Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.

• Market Size and Forecast and Segment Performance – Total retail sales based on Information Resources, Inc. InfoScan Reviews; US Census Bureau, Economic Census; BevNet.com

• Retail Channels – based on Information Resources, Inc. InfoScan Reviews; US Census Bureau, Economic Census; BevNet.com; except supermarket and drug store sales, which are based on Information Resources, Inc. InfoScan Reviews.

• Leading Companies and Brand Share sections – based on MULO sales data from Information Resources, Inc. InfoScan Reviews. MULO is defined as Multi Outlet, representative of the following channels: total US Grocery, Mass, total US Drug, total Walmart, Dollar, Military, and Club. Note that the values shown in this section differ from the Market Size and Forecast and Segment Performance sections of this report. Companies and brands sales data encompass only sales through MULO channels, while Market Size and Forecast and Segment Performance sales cover the entire retail market.

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer consumption of/attitudes and behaviors toward milk, creamer, and non-dairy milk products. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in February 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in the survey results. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Simmons NCS (National Consumer Study), the Simmons NHCS (National Hispanic Consumer Study), the Simmons NCS Teen Study, and the Simmons NCS Kids Study.

The Experian Marketing Services, Simmons NCS/NHCS was carried out during November 2012 to December 2013 and the results are based on the sample of 23,689 adults aged 18+, with results weighted to represent the US adult population. The Experian Marketing Services, Simmons NCS Teen Study was conducted during May 2012 to June 2013 and based on a sample of 1,886 teenagers aged 12-17, with results weighted to represent the US teen population. The Experian Marketing Services, Simmons NCS Kids Study was conducted during November 2012 to December 2013 and based on a sample of 2,061 kids aged 6-11, with results weighted to represent the US kid population.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

The following is a list of abbreviations used in this report.

Generations are discussed within this report, and they are defined as:

* also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows: