Flavoured alt milks drive sector growth

Brunette woman looking shocked, while wearing a checked shirt and holding a strawberry milkshake. She's sitting at a table and looking at the camera in from of a pink background.
Alt milks are getting flavourful as makers innovate to grow sector. (Image: Getty/DeanDrobot)

Plant-based milks get a flavourful makeover as rising consumer interest in dairy alternatives fuels innovation

The plant-based milk market is in rude health, with global sales reaching $27.31bn in 2025 (Statista).

And not only is this success leading to the launch of new brands, including Sproud, Better Than Milk, and Mighty Pea, it’s also sparking innovation and new product development across the industry. One of those innovations in flavoured plant-based milk.

Innovation in plant-based milks

Los Angeles-based Califia Farms recently announced the launch of its ‘Creamy Refreshers’ range of fruit-flavoured plant-based milk drinks.

“Over the last 15 years, Califia Farms has loved experimenting with the endless possibilities of plants. Creamy Refreshers is a perfect example of how that innovation unlocked something new, delicious, and fresh,” says Suzanne Ginestro, CMO of Califia Farms.

And they’re not alone. Swedish brand Oatly has also joined the party, with its vanilla and chocolate flavoured milks. The Malmö-based manufacturer is keeping a close eye on this particular trend as consumer interest continues to grow.

“Flavoured alt milks absolutely have the potential to be a big trend in plant based,” says Toby Weedon, barista development director for EMEA at Oatly. “Consumer interest is already shifting beyond basic options, and as the category matures, flavour innovation becomes a key differentiator.”

Oatly has seen “consistent growth” in the flavoured milks category, highlighting the growing demand for dairy alternatives and fuelling innovation.

Weedon expects customisation to shape the future of the alt milk category, with functional ingredients playing a major role.

“Gen Z is leading a move toward personalisation and creativity, often recreating cafe-like LTO (limited time offer) drinks at home,” he says.

Meanwhile developers at British brand Rude Health are taking a slightly different approach to the flavour space, with the launch of the brands first Iced Mocha and Oat Latte drinks. This follows the rise in demand for at-home coffee shop favourites like caramel and vanilla lattes.

“In the current economic climate, consumers are cutting back on bigger purchases while seeking every day, affordable treats,” says Alexandra Shields, assistant brand manager at Rude Health. “Flavoured drinks fit this need, providing a premium, indulgent moment at home without the expense of a takeaway coffee.”

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Sales of at-home barista-style drinks are rising as consumers look to indulge in affordable treats. (Image: Getty/Chaiyaporn1144)

Plant-based milk market booming

Sales of plant-based milks and plant-based drinks across Europe have grown significantly over the past decade, reaching a value of €2.2bn in 2024 (Good Food Institute Europe).

4.6% of all milk sales in France are now plant-based and that figure rises to 9.8% in neighbouring Germany.

Meanwhile new research, conducted by Alpro, revealed that 47% of Britons, aged 18 to 34, are switching to plant-based drinks to replace dairy-based alternatives.

And these numbers are expected to grow, with Grand View Research projecting the sector to grow by a CAGR of 7.6% over the next five years.

“Consumers are increasingly seeking dairy alternatives due to lactose intolerance, allergies, and the desire for lower-calorie, nutrient-rich options,” says an analyst for Grand View Research. “In addition, the rising popularity of veganism and flexitarianism, as more people around the world switch to plant-based diets, has expanded the consumer base.”

In other words, the market for plant-based products is strong and growing, boosting sales, innovation and new product development in the sector.