The provision of plant-based dairy alternatives in American school cafeterias has been stirring debate for years.
Proponents of milk alternatives argue that the time is right for more options to be included on school menus alongside dairy milk to address shifting consumer preferences. Those arguing against this point to plant-based milk alternatives’ lower nutritional value and the fact that regulators allow milk alternatives to be sold separately from the freely-distributed cow’s milk options.
Meanwhile, children with a lactose intolerance can receive alternatives to cow’s milk - such as USDA-approved plant-based milk - by providing a doctor’s note; and in the most recent USDA 2024 school meals rule, a parent can provide that note for non-disability students, which opens up more opportunities for students to get access to milk alternatives.
But dairy major Danone North America wants to see a greater change, as Kallie Goodwin, senior VP of plant-based milk brand Silk, explained: “As it stands today, the only way a child in schools can get soymilk is if they have a parent or doctors’ note requesting it. Silk meets the USDA nutrition regulations, so it is important to us that we advocate to bring as many healthy options as possible to children.”
Goodwin said the brand sold around 500,000 gallons of soy milk to schools in 2023 - but there’s runway for more.
“The desire for dairy alternatives is continuing to stay on the rise,” she told us. “We know at an adult-population level, 72 million Americans consider themselves flexitarians and are just looking to add more plant-based products into their diet. We also know that over a third of the population has a dairy sensitivity, so as part of our strategy, we need to provide these populations a wide range of options that meet their needs today.”
The Danone senior executive told us that Silk is also among the soymilk branded options that meet the USDA’s nutritional regulations, meaning there’s no argument against its provision in schools based on nutritional concerns.
“Our soymilk has 8g of protein and 50% more calcium than dairy milk [compared to reduced-fat milk]. So we provide additional nutrition benefits that consumers might be looking for that are different to lactose free milk; or just a taste that’s more enjoyable.”
“There's both a market, a huge market potential, and then as well we have a portfolio that provides a lot of different benefits to a wide population.”
Danone North America also offers a range of dairy options to K-12 organizations, from Dannon and Oikos Pro bulk yogurt to branded flavored yogurt. Danone did not comment on the volumes of its dairy products sold at US schools.
When is plant-based dairy consumed? Usage occasions are getting ‘more routine’
According to USDA data, plant-based milk consumption in the US declined in 2023 by 3% year on year, but plant-based milk alternatives remained a major entry-point for those trying plant-based products for the first time.
According to Goodwin, it’s the perceived ‘lightness’ and digestibility of milk alternatives – due to the lack of milk protein or lactose, for example – that makes alternatives desirable to consumers. But nutritional credibility is equally important, she told us, and usage occasions are getting more regimented.
“Probably the biggest trend we are seeing is the more routine usage of plant-based options in the morning occasion specifically.” – Silk SVP, Kallie Goodwin
“We are really paying attention to what are the nutrition trends that consumers are looking for,” Goodwin said. “We are seeing bowls of cereal as still the number-one breakfast occasion for plant-based, along with the morning cup of coffee. It’s become part of morning routines because that’s an effortless way to add plant-based nutrition that doesn’t drag you down, with some added nutritional benefits depending on the product.”
That includes the school run: “50% of parents would tell you right away that the morning is the most stressful part of the day; and so often, what you sacrifice is the healthy choice.
“So [our campaign] is obviously related to helping drive the access of soymilk in schools so it’s an option, but it’s also about how we communicate with consumers to remind them that adding Silk Soymilk to a bowl of whole wheat cereal is a very easy way to get plant-based nutrition into yours and your children's diet on a regular basis that isn't complicated or stressful as you're trying to get out the door.”
Beyond beverages, the brand’s plant-based creamers and yogurts are used on more occasions. “Silk creamers are mainly used to enhance coffee and tea, providing a creamy texture without dairy,” Goodwin said. “For yogurt, consumers have it as part of their breakfast or snack, especially on-the-go. Silk yogurts and creamers are also both used in recipes, baking and cooking as well.”
What’s the future of Danone’s plant-based innovation?
More than a third of Americans are dairy sensitive, highlighting a consumer need for plant-based dairy alternatives, Danone North America told us. “We are listening to consumers and staying agile to bring new formats, benefits and pack offerings that provide plant-based goodness in a variety of ways that suit different needs,” Goodwin said.
“The plant-based category provides products that meet a real consumer need, whether you’re dairy sensitive, looking for a nutritious alternative, or are interested plant-based for its sustainability considerations. We especially see those that prioritize health and wellness and are often seeking products with nutritional benefits such as added vitamins and minerals turn to Silk.
“There's lots of opportunity to continue to innovate on both functional nutrition benefits as well as on the sensorial side, to make sure that we're delivering parity or better taste than any other alternative.”
But with plant-based milk alternatives still costing a premium over cow’s milk, is pricing a barrier to ‘democratizing’ access to plant-based alternatives more broadly?
“It’s something we’re always watching and paying attention to,” Goodwin said. “I think it’s more about the value equation and making sure that we are delivering value that consumers appreciate; and hoping that our innovation in that space brings benefits that consumers are willing to pay for.”
Goodwin added that Danone has 'a robust innovation pipeline': "We'll be able to share more, hopefully in 2025, about some of the product renovations and innovations we have in the works."
What about lactose-free milk?
With lactose intolerance being one reason why consumers opt for plant-based alternatives, an International Dairy Foods Association-commissioned poll showed that there's opportunity for increasing the availability of lactose-free milk in US schools. A Morning Consult poll of likely voters showed that 8 in 10 parents surveyed said it was 'important' for public school lunches (81%) and federal nutrition programs (80%) to provide lactose-free milk options to kids who prefer them. IDFA's Andrew Jerome told us: "Lactose-Free volume was up +11.6% in 2024 (YTD May 2024) while Plant Based Alternative Beverages was down -4.7%. For example, Lactose-Free has outpaced Almond in gallons and dollars over the past 5 years (2019-2024 YTD). In 2023, Lactose-Free gallons exceeded Almond, as Lactose Free has delivered +10.7% annually for the past five years. Almond by contrast has declined -0.8% per year since 2019.
"Lactose-free is doing so well, that processors are moving it into gallon jugs at retail. Still, lactose-free is just 6% of all milk sales. The largest share of sales is in grocery, mass and club stores, where lactose free is 7-8% of the milk volume sales in those channels.
"We will continue to see strong growth in retail. But we should also see it in schools and institutions.
"For example, sales of lactose-free milk in schools increased from 0.2% in 2022 to 0.6% in 2023."
More availability of lactose-free products across all channels - retail, schools, military, institutions, foodservice - "will lead to increased sales because people want it," Jerome concluded.