After four years of growth, plant-based dairy struggled to maintain growth in 2023 in the US, according to Circana. The category, within which milk alternatives generate the bulk of the sales, saw a marginal decline (-0.5%) in year-on-year purchases. This was driven by a decrease in household penetration(-2.1%), repeat buying (-2.2%), one-off buying (-3.4%) and trips per buyer (-1.8%).
Circana noted that the loss of household buying and repeat purchases in particular ‘is a concern’ for the category. So what can marketers do to turn the trend around?
In a new study published in Beverages, New Zealand researchers from Lincoln University tried to discern just that.
Exploring low- and high-commitment behavior
The cohort comprising Meike Rombach, Lei Cong and David L. Dean created a model that explored how factors such as animal welfare and environmental concerns impacted low-commitment behaviors, i.e. willingness to try plant-based milk alternatives; and high-commitment behaviors, such as championing the category through word-of-mouth sharing.
Through an online survey completed by around 500 US consumers, the authors discovered that animal welfare concerns would likely pique shoppers’ willingness to try plant-based milk, but wouldn’t enthuse them enough as to trigger word-of-mouth sharing.
Health consciousness had a limited impact on either low- or high-commitment behaviors, suggesting that the category’s perceived ‘health halo’ is no longer sufficient to entice shoppers into buying. This may be because milk alternatives have both benefits, such as fiber and low fat content, but also drawbacks, such as lack of nutrients and higher added sugar and salt content.
“As some consumers seek product cues or information for the products they consume, health drawbacks and differences between regular products become more apparent to them,” the authors explain in the paper.
Concerns about the environment was the strongest word-of-mouth sharing driver, according to the study.
“The results for environmental concerns and US consumers’ word-of-mouth sharing about plant-based milk alternatives confirm findings in previous studies,” the authors wrote.
“Specific milk brands actively use marketing messages and influencers to impact online word-of-mouth.
“In addition, advertisements and business concepts are adjusted to environmental sustainability.”
The results also showed a positive link between animal welfare and willingness to try plant-based milk; but this did not translate into high-commitment behaviors.
Those consumers who shared an inherent ‘plant-based milk enthusiasm’ were both willing to try such products and also spread the word about the category’s perceived benefits.
Among the ones who had a stronger dairy preference, however, this negatively impacted both willingness to try and word-of-mouth sharing. The researchers explained this result with the fact that most consumers in the sample were omnivores (49.17%) – and research suggests that omnivores often prefer the taste of regular dairy and describe plant-based milk as sour or bitter.
Overall, the results can be used by marketing managers to inform promotional strategies and closely target specific consumer groups, according to the authors.
“For consumers following a vegan or vegetarian diet, it may be suitable to advertise that new plant-based milk products are cruelty-free and adhere to animal welfare standards, and clearly outline the health benefits related to the product.
“For consumers who drink both dairy and plant-based milk, possible messages could emphasise sensory profile characteristics that are similar to dairy milk. (…) . Addressing this taste difference could avoid consumer disappointment and negative word-of-mouth.”
Finally, plant-based milk enthusiasts – the category’s greatest cheerleaders according to the study – should be regularly engaged with product samples as the group ‘leverages social approval and is likely to create positive social media buzz’.
The full study is available via the link below.
Source:
Leave the Milk for the Calf and Spread the Word: Exploring Factors Determining US Consumers’ Willingness to Try Plant-Based Milk Alternatives and Their Word-of-Mouth Sharing about Plant-Based Milk Alternatives.
Published: Beverages 2024, 10, 27.
Authors: Rombach, M.; Cong, L.; Dean, D.L.
DOI: 10.3390/beverages10020027
