Next-generation plant milks are going all out to meet demands for better nutrition, barista-quality foaming capabilities and sustainably sourced ingredients. In this milk alternatives market update, The Plant Base gives an overview of how this dynamic category – a frontrunner in the broader plant-based food and beverage sector – is steaming ahead in its quest to transform the modern latté.

Plant-based milk alternatives surged into the mainstream in 2019, with brands like Oatly and

Alpro taking centre stage as oat milk soared in popularity in retail and foodservice. According to recent data published by Future Market Insights, the global milk alternatives market is estimated to be worth over $32 billion in 2025, projected to reach $80.67 billion by 2035.Plant-based milk is expected to hold the largest share of the broader alt-dairy market this year.

While oat and almond still lead the pack, alt-milk has vastly diversified since the early days of its success. Ingredients like pea and fava bean have gained momentum as new base options, while blends of different plant proteins are increasingly common. As nutrition-savvy consumers grow more aware of the need to combine plant sources for a complete amino acid profile, manufacturers are responding with smarter, more balanced formulations.

Despite its success, the category has faced several hurdles. Challenges around taste and

texture have led companies to pour efforts into R&D&I, with much work being done around

achieving the same creaminess and stability in hot beverages as traditional dairy milk varieties.

The use of higher quality, sustainably sourced ingredients has also been a critical consideration as demands around transparency rise – both with regards to things like additives and clean labelling, and responsible sourcing.

And with so many new variants hitting the shelves, it has become increasingly difficult for

brands to capture market share and stand out from their competitors. UK-based pea and oat milk specialist Mighty Drinks, which entered administration earlier this summer, was one such casualty. The company cited its failure to raise sufficient funding as one of the reasons behind its downfall – a reflection of the difficulties plant-based brands now face in the post-pandemic investment landscape.

Yet, encouragingly, optimism remains high among alt-milk makers about the segment’s future. In the foodservice industry, where plant milk is now a regular feature on café menus, it is clear to see how far the sector has come. Many chains, such as Starbucks, have removed

their additional surcharge for choosing a dairy-free milk option, underscoring alt-milk’s acceptance into the mainstream.

Newcomers are still hitting the market, with smaller brands determined to stand up against the giants of the category. Meanwhile, more established players continue to expand their portfolios, addressing shifting preferences and reformulating to enhance previous offerings that no longer fulfill consumer needs.

Ingredient innovation

Beyond oat, almond and soya, a plethora of unique ingredients not traditionally associated

with alt-milk are coming to stake their claim of the shelves.

Seeds are becoming a more popular choice this year. In March, chia seed specialist Benexia – which supplies ingredients as well as end products – unveiled a chia seed milk under its Seeds of Wellness brand in the US. The innovation, said to be the first of its kind, is made from whole chia seeds, which lend a nutty flavour and good source of protein.

Sandra Gillot, CEO and co-founder of Benexia, explained that the company’s work exclusively in chia seed innovation for two decades helped lay the foundations for the launch.

“We offer several proprietary ingredients made from only whole chia seeds – like our

micro-milled chia fibre and chia protein powders – that deliver both nutrition and functionality,” she told The Plant Base.

“We saw a clear opportunity to create something the market was missing – an omega-3-forward, functional plant milk made from one of the most regenerative crops on the planet, and with ingredients processed without any chemicals or solvents.”

The drink contains 740mg of plant-based omega-3s and is claimed to offer three times the protein as leading rice milks and four times the fibre found in typical oat or almond drinks.

“The magic is in our micro-milling process,” Gillot revealed. “After a cold press to extract

the omega-3 rich oil from whole chia seeds, our micro-milling process allows us to turn the rest of the seeds into a smooth, stable and nutrient-intact flour – no solvents, no enzymes, no shortcuts.”

MILKish, a brand based in California, US, has also turned to seeds to develop a ‘world-first’

innovation in the category: watermelon seed milk.

The drink is designed for versatility, suitable for use in coffee, cereal and beyond while providing a healthy and nutritious option. Watermelon seeds pack more protein than almonds, and are also rich in antioxidants and minerals.

MILKish’s founder, Guilherme Maia Silva, said: “As awareness grows around the environmental impact of almonds and the high glycaemic index of oat milk due to processing – often compounded by added sugars – consumers are becoming more

curious about alternative options”.

“MILKish is here to provide an outlet for those consumers, to integrate a superfood into their diet without compromising on flavour, texture or functionality.”

Ingredients provider Burcon offers a range of alternative ingredients beyond traditional alt-milk staples, aiming to deliver on evolving consumer expectations as the category matures.

The company has recently developed a new sunflower seed protein, Solatein, that can enhance the protein content of plant-based milks while offering a non-GMO and hypoallergenic option.

In addition to seeds, more variety is being seen among nuts and pulses in today’s plant-based milk alternatives. Swedish brand Sproud crafts its drinks using yellow split peas, offering zero-sugar and barista varieties within its line-up. And Pkn, based in the US, has launched a pecan-based milk alternative containing just four ingredients: filtered water, pecan butter, vanilla extract and sea salt. It features subtle flavours of roasted pecans and a buttery taste while responding to clean label demand and supporting brain and heart health – pecans contain the highest level of flavonoids of any tree nut.

Full steam ahead

Taste and texture have been among the most enduring challenges for plant-based alternatives to navigate, and the milk alternatives segment is no exception to this.

In recent years, there has been a surge in barista-style innovations hitting the market,

addressing common complaints about plant-based milks – particularly their watery textures and tendency to separate in hot beverages.

Rodolfo Garza, global business development manager for milk and plant-based alternatives

at DSM-Firmenich, said achieving barista-grade functionality – especially the ability to foam and hold microbubbles while maintaining pH stability in acidic drinks like coffee – has been a major hurdle for plant-based alternatives.

“Many plant-based milks tend to curdle or separate, which undermines the consumer

experience,” he noted.

Sproud is just one of many brands delivering barista options, which are usually formulated to offer a creamier taste and texture, and better foaming capabilities. Oatly’s Barista Edition was introduced back in 2017, and is now its best-selling product.

Novonesis – a biotech company formed in 2024 through the merger of Novozymes and Chr. Hansen – launched a new biosolution this year, Vertera Velvet, in recognition of the barista quality demand.

Birgitte Borch, head of plant and food at Novonesis, told The Plant Base: “According to our research, most consumers first encounter plant-based drinks through coffee, yet many of these drinks struggle with poor stability when added to coffee”.

Vertera Velvet is a protein deamidase, also known as a protein glutaminase. Borch explained that this enzyme offers a precise way to optimise protein functionality by converting protein-bound glutamine into glutamic acid without breaking down the protein. This process increases solubility, leading to better stability, smoother textures and improved emulsification – all without affecting taste.

“Specifically, it helps in creating excellent foam in oat drinks and ensures the stability of plant-based drinks in coffee, such as those made from pea protein, soy or blends,” she added. “In addition, it enables higher protein inclusion and a simpler ingredients list, all while remaining affordable.”

While barista milks are formulated with coffee in mind, British Glebe Farm Foods’ brand PureOaty recently launched a unique innovation: an oat milk crafted especially for use in tea. The brand noted a ‘distinct lack’ of oat-based alternatives designed for enjoying in the UK’s favourite beverage, with most brands on the market focusing on coffee.

Glebe Farm’s research indicates that wider adoption of milk alternatives in tea is often hindered by concerns about altering the tea’s taste and colour, as well as fears of milk separation. Its gluten-free PureOaty recipe aims to address these concerns, ensuring the beverage does not split while delivering a pleasant taste.

Finding familiarity

For many brands, the goal is to closely emulate traditional dairy. While some consumers choose oat milk and other alternatives for their distinct taste, others – motivated by environmental and animal welfare concerns – may be seeking the familiarity of cow’s milk but with less of the impact.

US company Eclipse Foods claims to have created a product that is ‘indistinguishable’ from dairy milk. The shelf-stable product replicates the molecular structure of milk, and is currently available to foodservice partners.

Thomas Bowman, CEO and co-founder of Eclipse Foods, enthused: “Eclipse Foods’ Non-Dairy Whole Milk is a milk replacement, not an alternative. It is a category-first solution for the market because it replicates the taste, texture and performance of traditional dairy with unmatched precision.”

The team at Eclipse used proteins isolated from plants that mimic the functionalities of dairy proteins like casein and whey. According to Bowman, the viscosity, fat content, perceived

sweetness, foaming ability and synergistic buffering effect are “very similar, if not the same or better” than whole milk.

“The current iteration uses chickpea protein to replace casein and pea to replace whey,” he explained. “We try to be somewhat plant agnostic. There are sources of these same proteins widely found throughout the plant kingdom; there will be versions of [the product] utilising other plants. This allows us to bolster our supply chain and continue to find more sustainable options to replace dairy.”

A recent consumer insight study carried out by DSM-Firmenich revealed that 55% of Europeans agreed the taste of dairy alternatives should be similar to the dairy version of a product.

DSM-Firmenich’s Garza explained that these expectations drove the launch of its recently

introduced Best in Class Milk flavours and Dynarome DA solutions, designed to deliver a true dairy-like experience in plant-based beverages.

“Dynarome DA is a proprietary technology designed to bridge the sensory gap between plant-based and dairy,” he said. “It works in two powerful ways: first, by masking off-notes commonly found in plant protein bases like soy or pea, and second, by restoring the rich, creamy mouthfeel that consumers associate with full-fat dairy.”

The solution can help replicate the full-bodied, indulgent texture typically delivered by dairy fat while still reducing calories and fat content.

“Once the base is smoothed and neutralised, manufacturers can then layer in Best in Class Milk flavours – a range of natural flavour systems that deliver authentic milky and creamy notes tailored to local consumer preferences,” Garza added.

By identifying local consumer preferences, DSM-Firmenich was able to design specific dairy-like profiles and validate them through targeted consumer testing, ensuring they could be optimised across a variety of plant protein bases.

Garza described flavour as a key feature of milk alternatives, with consumers “increasingly

gravitating toward both nostalgic dairy-like flavours such as vanilla and banana, and novel ones like caramel and mango”.

“Our 2025 flavour of the year ‘Milky Maple’ reflects these trends with a comforting blend of flavours proving especially popular in plant-based lattes.”

Nutrition first

Where once brands leaned heavily on synthetic additives to improve taste and texture, today’s consumers demand simpler labels, fewer artificial ingredients and better nutrition.

Brands in the plant-based space have come under increasing scrutiny due to this, prompting a new wave of innovation in the space that champions 'cleaner’ ingredients lists with emphasis on boosting essential nutrients.

In 2025, several new milk alternative products have launched minimal processing and short,

recognisable ingredient lists. Plenish, for example, introduced a clean label fortified oat milk made simply from oats, water and salt, while Malk Organics expanded its portfolio with a range of new organic milk alternatives made using just four ingredients and no additives.

Susan Knight, co-founder and CEO of US plant-based beverage brand Whole Moon, said that while consumers are seeking cleaner labels, they are still moving beyond “watered down” plant milks.

“They’re wanting more nutrient-dense options, whether that’s protein, fibre or fats,” she told The Plant Base. “There’s also growing demand for products made with whole ingredients rather than extracts or isolates.”

Whole Moon utilises whole and roasted almonds, oats, pistachios, soya beans and coconut meat in its formulation. The company recently launched what it claims is the world’s first coconut milk made using whole coconut meat without creams or oils.

“Using the whole coconut meat – not just the cream or oil – allows us to retain the natural fibre, healthy fats and subtle sweetness of the coconut,” Knight explained. “The result is naturally creamy texture and full flavour, without the need for oils, fillers or isolated proteins.”

The company does use gellan gum to maintain a consistent texture, Knight noted, as well as a small amount of organic raw cane sugar to “provide subtle sweetness without overwhelming the palate,” and dipotassium phosphate as a stabiliser.

“Our Whole Protein blend offers all nine essential amino acids, which is rare in plant-based

milks,” she pointed out. “The R&D team was incredibly intentional in balancing taste, nutrition and texture without compromising on our whole-ingredient promise.”

Blending protein sources to meet consumer expectations around nutrition is becoming more

popular, as Novonesis’ Borch explained.

“For example, producers can combine oat and pea protein bases to create a blend that delivers on the taste and texture – offering the familiarity of oat while incorporating higher protein content from the pea protein. In general, blending a grain, such as oats or rice, with a legume, such as soy, pea or faba, achieves a complete amino acid profile and PDCAAS of 1.”

In addition to its most recently developed sunflower seed protein, Burcon offers a range

of other protein ingredients that can be blended to enhance protein content.

“Beverage manufacturers can select from our suite of proteins, all of which have their unique

advantages in plant-based milk products,” explained Sarah Medina, lead R&D scientist at Burcon.

For example, she highlighted that the company’s pea protein has low sodium and a neutral,

off-white colour; its fava protein offers a clean label ingredient with neutral colour and flavour; and its canola protein is highly soluble and nutritionally complete on its own, with a PDCAAS of 1. The company has also launched a high-purity hempseed protein, which can be used to create unique hemp milk products.

Novonesis’ Borch noted that fortification with calcium is already common in the sector, and many companies are now exploring further fortification options – such as adding probiotics,

fibre and vitamins.

Green and clean

Sustainability remains a key focus for the alt-milk category – and rightly so. Important considerations for companies in this space include sustainable sourcing of raw ingredients and minimising waste throughout the production process.

Danone UK and Ireland announced a multi-million-pound investment earlier this year to bring 100% British oats to its oat drinks, sourcing them directly from local farmers and significantly reducing food miles. This followed a previous £41 million investment into the company’s facility in Kettering, UK, to reduce energy consumption, CO2 and water usage.

Elsewhere, Veganz, a plant-based F&B company based in Germany, has developed an innovative 2D-printed plant-based milk sheet concept, designed to provide a more eco-friendly option.

The unique leaf-shaped oat sheets can be mixed with water to create a milk alternative drink.

According to Veganz, this innovation reduces packaging used by 94% and weight by 85%, compared to a litre equivalent of conventional oat drink in a beverage carton.

Similarly focused on minimising waste, Whole Moon champions whole ingredients use, aligning with sustainability goals by utilising the entire plant in its formulations.

Benexia and MILKish are also enthusiastic to celebrate the environmental benefits of their

hero seed ingredients. MILKish’s Maia Silva said he fell in love with watermelon seeds due to their sustainability attributes. “Being a drought-tolerant fruit, watermelons really stood out to me as incredibly nutritious while requiring a fraction of the water to grow,” he told The Plant Base, noting that they require 99% less water than almonds.

And chia grown organically and sustainably is regenerative, helping to improve soil health. Benexia’s Gillot enthused that its regenerative roots make chia an “ideal hero ingredient” for the next generation of plant milk products.

Wendy Bazilian, a registered dietician and Benexia’s US nutrition communications and strategy advisor, said: “The sustainability story is a major bonus – grown with regenerative agriculture and with care to ensure the highest quality and highest nutrition in the crop so consumers can benefit.”

Speaking about the future of the category, Gillot said she is optimistic that the plant milk

aisle is ready for innovation and reinvention, with consumers seeking added value from their

dairy-free products more than ever before.

“We believe the future belongs to plant milks that do more – nutritionally and environmentally,” she commented. “Chia milk answers that call in a big way by moving from imitation to innovation. It’s not trying to imitate dairy – it’s a new, modern category all on its own.”

To retain customers and continue growing in the mainstream, Novonesis’ Borch said technological advancements and ongoing innovation will be essential for plant-based milk alternatives.

“We expect to see a broader diversity of ingredients and final food products, including novel options from upcycling side streams,” she commented. “Plant-based foods and beverages have robust long-term growth – with plant-based drinks (excluding soy) growing at 14% annually – but consumers have ever-increasing expectations around taste, texture, functionality, nutrition, sustainability and, not least, affordability.”