Dairy milk returns as protein trend cools plant-based demand

Gabriel Morrison had avoided dairy for a decade but changed his mind in early 2025 after reading the ingredients on his oat milk carton. He says seeing canola and other oils listed made cow’s milk — “100% cow’s milk” — feel like the simpler choice. After years of growth for plant-based alternatives, milk is recovering some ground.

Australians reduced per‑person milk consumption from about 100 litres in 2015 to 85 litres in 2025, but supermarket milk sales returned to growth in 2025, up 1.1% to just over 1.4bn litres, with nearly two‑thirds bought as cheaper homebrand milk. Plant milk revenues, which doubled to $600m annually from 2015 to 2022, have since declined.

Shoppers cite cost pressures, a desire for fewer ingredients and shifting diet trends. Cafe customers often pay 50c–$1 more for plant milks, while companies such as Milklab say many consumers choose plant varieties for drinks like oat matcha rather than to replace dairy altogether.

Australia

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