Got Milk? Nearly 2% More Americans Do!

Here’s a headline I didn’t believe I would see for some time, if ever again: “Why everybody’s drinking milk again,” from HubSpot Media’s newsletter, The Hustle. From a Gen X point of view, milk was a staple in our diets and seemed untouchable by other beverages. For most consumers today, though, alternative beverages have won out. Thus, what can milk do to drive more consumption and build on this trend?  

First, let’s look at the facts as presented in the article:  

• Americans consumed 1.9% more milk in 2024 compared to 2023. 

• US dairy producers are selling 40 million additional gallons in the US.  

• Last year marked the beverage’s first increase in consumption since 2009, with the last increase dating back to the 1970s. 

• According to USDA data, milk consumption per capita in the US dropped 47% from 1975 to 2024.  

Why are we drinking more milk? In short, we have an increasing appetite for functional beverages, particularly milk, driven by a growing desire for protein. Interestingly, this demand is primarily coming from older generations.  

In past articles, I referred to orange juice as one of the original functional beverages. That, too, is experiencing some challenges, though the fact remains functional beverages are on the rise, as evidenced by the latest products from Coca-Cola (Simply Pop) and Pepsi (Poppi).  

Overall, it seems that we are returning to the basics when it comes to functional beverages. Thus, a long-waiting opportunity in disguise. 

But How Does Milk Remain Victorious?  

First and foremost, don’t retreat on excellent customer experiences. I have written about multiple brands, products and services winning over their consumer based on experiences (a must for Gen Z). Just think: coffee creamers, Sprite, Crumbl Cookies, and Coach.  

Secondly, let’s look to the following as a basis for driving consumption with new users as identified in "Blue Ocean” strategy by identifying non-tier customers not currently consuming milk.  

As identified by W. Chan Kim and Renee Mauborgne's book, Blue Ocean Tools and Frameworks, these users are:  

1. The soon-to-be: Buyers who minimally purchase your industry’s offering out of necessity but are mentally non-customers of the industry. 
2. Those refusing: People who refuse to use your industry’s offerings. 
3. The unexplored: Non-customers who have never considered your market’s offerings as an option.   

Lastly, let’s reimagine the market boundaries and a shift in competitive strategy. The "Six Paths Framework," as discussed in Kim and Mauborgne's books, Blue Ocean Strategy and Blue Ocean Shift, enables the identification of new possibilities in Blue Oceans by reconstructing market boundaries: 

1. Exploring alternative industries. 
2. Identifying strategic groups within the industry. 
3. Redefining the industry's "buyer groups." 
4. Considering complimentary product and service offerings. 
5. Rethinking the functional-emotional orientation of the industry. 
6. Identifying participants shaping external trends over time.   

The basic tenet for milk’s case today is there—growth. Thus, building on that growth requires a different vantage point. If implemented, the campaign will change. Got Success? 

How Can We Help?  

Let our Consumer Strategy practice help define your consumers, their values, and—more importantly—the experiences they are seeking that have not yet been satisfied. Led by industry veteran Michael Johnson, this practice focuses on understanding the evolving marketplace and changing consumer behaviors. We work with brands to develop market strategies that are connected to consumer needs.  

Further, our Business Transformation and Leader Development practice, which cultivates high-performing leaders who can inspire and motivate teams, is more important today than ever. Led by Dr. Frank Niles, PhD, a Business Psychologist at BSM Partners, our team can help develop and retain the leaders needed to elevate your business. 

From business transformation to leadership development, our comprehensive expertise helps brands, retailers, and services of all sizes make competitive comebacks and captivate consumers. 

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About the Author

Eric Rittenhouse works at BSM Partners as Business Development Manager. His areas of expertise include business development, sales and trade marketing while helping brand companies uncover and execute on opportunities to strategically dominate their niche in the consumer product space. He has completed the Blue Ocean Practical Introduction certificate by the Blue Ocean Academy and is Action Selling Master Certified by Action Selling and The Sales Board.