From Oat to Cow: Why Milk is Making a Comeback
For years, dairy milk faced a steady decline as consumers embraced plant-based alternatives like soy, almond, and oat milk. But a surprising shift is underway. Milk is back on the menu, and it’s not just a nostalgic trend. A combination of economic pressures, a focus on “natural” ingredients, and a reevaluation of processed foods are driving shoppers back to the dairy aisle.
The Canola Oil Revelation
The turning point for many, like 28-year-old cinematographer Gabriel Morrison, came down to an ingredient list. After a decade avoiding dairy, Morrison revisited oat milk only to be surprised by the amount of canola oil. “It’s [so much] canola oil and you imagine that in your glass…that’s actually really gross,” he said, prompting a return to traditional cow’s milk. This sentiment reflects a growing concern about ultra-processed foods and a desire for simpler ingredient lists.
Cost of Living and Coffee Habits
Economic factors are too playing a significant role. As the cost of living rises, consumers are seeking supermarket discounts and making adjustments to everyday expenses. A 50c to $1 price difference between a dairy-based coffee and a plant-based one is proving to be a tipping point for some. Supermarket milk sales, particularly cheaper homebrand options, have seen growth, increasing by 1.1% to over 1.4 billion litres in the last year.
The Protein Boom and Dairy’s Advantage
Beyond cost, a surge in protein-focused diets is benefiting dairy. Companies like Bega Group are capitalizing on this trend, expanding their offerings of high-protein milk and yogurt products. The demand for protein extends beyond gym-goers, with older adults recognizing the importance of maintaining muscle mass. This trend is expected to continue for at least five more years.
Lactose-Free Options Expand the Appeal
For those with lactose intolerance, the availability of lactose-free options has been a game-changer. Australian sales of a2 milk’s lactose-free products grew nearly 10% in the second half of 2025 compared to the previous year, demonstrating a significant unmet need. An estimated one in three Australians believe they have some level of milk intolerance.
Plant Milk Momentum Slows
While plant milk revenues doubled between 2015 and 2022, reaching $600 million annually, they have since begun to decline. Milklab, a major player in the plant and dairy milk market, acknowledges that growth is slowing as consumers prioritize simpler ingredients and “natural” products. The focus is shifting from simply substituting dairy to enjoying the taste and variety of plant-based options, like an “oat matcha,” rather than solely as a dairy replacement.
The Role of Weight Loss Drugs
The growing popularity of weight loss drugs like Ozempic, which can suppress appetite and lead to muscle loss, may further fuel the demand for protein-rich foods like dairy. With estimates suggesting nearly one in ten Americans are using these drugs, and similar usage rates emerging in Australia, maintaining muscle bulk through increased protein intake is becoming a priority.
Frequently Asked Questions
- Is canola oil harmful? Experts, including Fiona Willer of Dietitians Australia, say canola and other seed oils added to plant milks are generally fine, despite concerns raised by some.
- Is dairy milk healthy? Research suggests dairy milk is health-neutral, and soy milk often matches it in protein and calcium levels.
- Why are people switching back to dairy? A combination of cost, concerns about processed ingredients in plant milks, and the rising popularity of protein-rich diets are driving the shift.
- Are plant milks still a viable option? Yes, plant milks remain popular for those seeking alternatives, but their growth is slowing as consumer preferences evolve.
Pro Tip: When choosing oat milk, check the ingredient list for added oils. If you’re concerned about processed ingredients, consider opting for brands with minimal additives or exploring dairy alternatives like soy milk, which naturally contains a higher protein content.
What are your thoughts on the return to dairy? Share your experiences and opinions in the comments below!
