The vegetable milk boom
MEXICO — Mexican consumers have increased the consumption of vegetable milks which are characterized by being derived from grains, soy nuts, almonds or oats.
“Although vegetable milk prices on average are higher than the prices of cow’s milk products, (alternative milks) they will remain a niche market, and their expansion is likely to be driven by the prevalence of lactose intolerance and by consumers looking for plant-based beverages, which commonly enjoy a positive and healthy image, “the international consultancy Euromonitor stated in a report.
The production of these alternative beverages was 117.2 million liters in 2018, according to Euromonitor, a figure still far from the more than 12,000 million liters of cow’s milk that Mexico produces annually and that represent more than US$20 billion annually, according to Femeleche.
However, in the last five years the consumption of these types of milk, which are not really dairy products, has grown 33.5%, from US$ 155 million in 2013 to US$ 207 million in 2018, according to Euromonitor data.
Multinational companies such as Nestlé, Danone or Coca-Cola have taken advantage of said market niche to acquire this type of products. Some Mexican companies have done the same, such as Grupo Cuadritos, which is developing these products under the “Güd” brand.
“We are growing 25%. At the end of 2018 we had a sales volume of 20 million liters, considering the macadamia, soy and almond milk, we expect to grow 20% by the end of this year. In the coming weeks we will launch oatmeal milk and, in three more months, the quinoa milk “, explains Raúl Katthain, general director of Cuadritos Group, which also develops “Bové” organic milk.
Ades, of Coca-Cola, has a 45.8% market share, followed by Silk, of Grupo Danone, with 21.7%; Nature’s Heart, from Nestlé, with 5.7%, and then Güd milk, from Grupo Industrial Cuadritos with 1.9%.