KANSAS CITY — An area of past growth for alternative milk producers has been in lactose-free applications, and now dairy processors are catching on. Over the past year several have introduced lactose-free fluid milk, cottage cheese, ice cream and other dairy products. But there are still opportunities to improve and grow in the dairy alternative sector. Formulators just need to do a better job delivering what consumers want, which are products that mimic the taste and texture of conventional milk and provide some of the benefits.
“The share of only plant-based buyers is lower with 5%,” said Kwee Choo Ng, regional manager of rice ingredients and functional proteins with Beneo, Parsippany, NJ. “In most cases, plant-based options are an add on to the conventional dairy options and hence contribute to a flexitarian lifestyle that is gaining popularity.”
The primary barriers for plant-forward consumers — defined as flexitarians, vegetarians or vegans — to try plant-based dairy alternatives include unappealing taste and texture, cost, and being unsure about nutritional benefits, according to the Outside Voice Global Protein Consumer Report 2025 from ADM, Chicago. The research showed 80% of US plant-forward consumers have tried milk alternatives and 73% have tried yogurt alternatives.
The key word is “tried.” Taste is the deciding factor in repeat purchases.
“Improved taste, along with texture, cost and clean label product positioning must be achieved to support ongoing and increased trial in this sector,” said Patricia Hammond, senior marketing manager of dairy and specialized nutrition at ADM. “Additionally, while health, nutritional benefits and protein source variety are the top motivators pushing consumers to try dairy alternatives, there is still room for higher nutritional value in the products.”
Not willing to compromise
Matching dairy’s texture and taste isn’t easy. To do so, many products rely on long ingredient lists, which may clash with consumers’ clean label expectations.
“Achieving dairy-like qualities in plant-based products depends on how ingredients work together,” said Regina Draper, director of research and development for dairy and plant-based dairy alternatives, Cargill, Minneapolis. “For example, matching whole milk’s mouthfeel might involve adjusting the fat globule size, optimizing emulsification and using starches that gelatinize properly under heat. Our systems-based approach allows us to fine-tune these elements together, rather than relying on a single ‘hero’ ingredient to deliver a consistent, indulgent experience.”
Developers need to have a full understanding of each ingredient’s function in the formula, as well as a clear understanding of the final product’s target attributes.
Expanding the ingredient toolbox
Many dairy alternative companies are on their third and fourth generations of products. Improvements are the result of developing a better understanding of how ingredients and processes work in synergy.
“Chicory root fiber, for example, is a natural, plant-based ingredient that addresses multiple formulation needs,” Ng said. “It allows manufacturers to reduce sugar and fat while enhancing sweetness and fiber content. Nutritionally, it supports digestive health and enables ‘source of fiber’ claims, aligning perfectly with the growing interest in gut-friendly foods.
“Rice starch is a clean label, allergen-friendly ingredient that plays a crucial role in achieving the creamy, indulgent texture consumers expect from dairy. It acts as a natural thickener and stabilizer, improving viscosity and preventing separation in plant-based milks, yogurts and desserts.”
Rice starch has a neutral taste. Use of the ingredient often eliminates or reduces the need to balance off flavors, even when plant proteins are added.
“Fava bean protein provides a high-quality, sustainable protein source with excellent solubility and emulsification properties,” Ng said. “Ideal for plant-based drinks, it helps create a homogeneous, stable product with a pleasant, creamy mouthfeel. Importantly, its clean taste profile makes it easier to formulate dairy alternatives that taste natural and appealing without interfering with the flavor variations and the need to use excessive masking agents.”
New flavor modulation masking solutions also have been developed specifically for dairy alternatives. They neutralize any potential off notes from added functional ingredients. Some also help build back mouthfeel.
“To support clean label objectives, our flavor modulation solutions can be listed on product labels as ‘natural flavor,’” Hammond said. “Vanilla is also a fantastic tool in masking potential off-notes and delivering on the perception of creaminess.”
Most significant opportunities
The three dairy categories most appealing to shoppers looking for more plant-based choices are fluid, yogurt and ice cream, according to the Reinvigoration of Dairy 2024 report from UK-based FMCG Gurus. The category includes products using alternatives as bases, such as in drinkable yogurts and nutrition shakes.
“While alternatives to milk dominate, drinkable yogurts have a particularly unique potential for innovation within the plant-based space, especially with younger consumers and those seeking functional health benefits like gut health support or increasing their protein intake,” Hammond said. “The convenience of drinkable yogurts sets this category apart.”
Ivan Gonzales, director of category marketing for dairy, texture and healthful solutions, Ingredion Inc., Westchester, Ill., said, “Some plant-based dairy beverage brands are seeking to improve the nutritional profile of their products. One way to do this is to add a protein that adds value but does not sacrifice taste and texture. The challenge faced is finding a vegan, top 9-allergen-free protein to deliver nutrition benefits as well as clean flavor, taste and texture.”
Ingredion’s solution to the challenge was the development of a new pea protein. It features solubility and viscosity stability for a lump-free texture without grittiness, along with improved mouthfeel and reduced sedimentation, Gonzales said.
ADM also has extended its pea protein line with solutions intended to support dairy alternative development while mitigating off notes and off textures.
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“Our new pea protein has a clean profile and outstanding solubility, emulsification and gelation properties, along with reduced sodium content,” Hammond said. “We also continue to add to our range of soy protein concentrates and isolates for unmatched texture and emulsification attributes and overall nutrition.”
Pia Meinlschmidt, team lead of product management at Planteneers, Ahrensburg, Germany, believes plant-based meal replacement drinks have significant potential. One reason is it still is an evolving category.
“Indulgence, health and convenience are the ongoing global mega-trends,” Meinlschmidt said. “Plant-based meal replacements that combine these aspects score highly with consumers. With increased protein and fiber content, selected micronutrients and flavors, various individual concepts can be implemented that combine health requirements with indulgence and convenience. There must be no compromises in any way.”
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