Move over, oat milk: Lactose-free dairy is having a moment
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Allie Carl/Axios
The rising star of the dairy aisle: lactose-free milk, which is now more popular than plant-based alternatives.
Why it matters: Health-conscious consumers — many of them lactose intolerant — are redefining what "healthy milk" means and moving away from almond and oat drinks.
By the numbers: Sales of lactose-free and lactose-reduced dairy milk (think: brands Fairlife and Lactaid) grew about 14% in the past year, and have driven dairy's overall comeback, per NielsenIQ data shared with Axios.
- Meanwhile, plant-based milk sales have dropped 5% year over year — "very counter to what we've seen for many years," says Chris Costagli, NIQ VP of food insights and a dairy industry veteran.
Catch up quick: Soy milk led the alt-milk charge in the '90s, followed by almond (still the category leader despite a recent dip) and oat.
What's happening: Consumers are returning to cow's milk because they're getting wise to the fact that there are additives like texturizers in many plant-based alternatives, Costagli says.
- Plus, lactose-free dairy milk offers inherent protein and calcium, which is why dietitian Tamara Duker Freuman says she's switched lactose-intolerant patients to it.
- And taste is a factor. Unlike plant-based milks, dairy milk tends to froth better, taste creamier and not curdle in hot beverages.
Between the lines: Lactose-free dairy milk is typically cow's milk with an added enzyme that breaks down the lactose.
Zoom in: Lactose-free milk Fairlife, which is filtered to have high protein and low sugar, surpassed $1 billion in annual retail sales in early 2022.
- It also broke ground on a new production facility last year, and has a major TikTok presence.
- Fairlife's rise hasn't been without controversy: There's a Fairlife class action lawsuit over new animal cruelty allegations. Fairlife didn't respond to Axios' request for comment about this.
Yes, but: There's still room for plant-based milk in a healthy diet — especially if you opt for varieties without carrageenan or added gums, Freuman says.
The bottom line: Whether you're pouring oat, almond or ultra-filtered cow's milk, today's consumers are getting smarter about what's actually in the carton.
What we're watching: Whether tariffs on dairy products will affect Americans' milk-buying habits.
More from Axios:
