Is dairy making a comeback in specialty coffee?

• Oat milk rose to stardom in specialty coffee in the mid-2010s, embraced by baristas and consumers alike.
• But signs point to a return to dairy; USDA data shows Americans consumed a record amount of dairy products in 2023, up by 3% in volume over the past five years.
• While plant milks have an established presence in coffee culture, growing health concerns and debates over food processing have created opportunities for dairy to reclaim market share.
• Current trends suggest a rebalancing of options that acknowledges the strengths of both high-quality dairy and plant-based options.

Plant milks, especially oat-based drinks, became ubiquitous with specialty coffee in the mid-2010s. But the recent growing movement against ultra-processed foods could mean dairy is reclaiming the top spot in coffee shops.

Prominent roasters like Stumptown, Blue Bottle, and Onyx Coffee Lab defaulted to oat milk as its popularity soared over the last few years. However, emerging global consumer trends suggest a potential recovery for cow’s milk. 

US sales of dairy milk increased 2% to over US$17 billion in 2024, while consumption in the Asia-Pacific market continues to grow. Around the world, consumers increasingly cite health concerns as the main reasons behind this shift.

This change in consumption is likely to extend to coffee shops; does specialty coffee need to reassess its milk offerings?

Toby Weedon at Oatly and Maria Kurenkova at MILBOK share their thoughts on whether dairy is making a comeback in the coffee industry.

You may also like our article on how much people are really willing to pay for oat milk.

How oat milk became the barista’s best friend

In the mid-2010s, oat milk emerged as the undisputed champion of plant-based beverages in specialty coffee shops. According to data from World Coffee Portal, over 28% of customers at UK branded coffee shops have ordered oat milk, which makes it the most popular plant milk in the country.

Oat milk continues to outperform other plant milks – and dairy in some cases. The news that some well-known roasters and coffee chains in the US and UK defaulted to oat – and even upcharged for cow’s milk – was a clear sign of its mainstream popularity.

But the oat milk “revolution” wasn’t coincidental; it was the result of strategic marketing.

Brands like Oatly, Minor Figures, and Califia Farms spearheaded the movement through branding campaigns targeted directly at the specialty coffee community. 

In 2017, Oatly’s newly hired Barista Market Developers familiarised themselves with coffee shops across major cities in North America and Europe. They introduced staff to the Barista Edition oat milk, demonstrating its similarities to dairy in terms of foamability and pourability, but without the higher carbon footprint. This grassroots approach proved effective, creating coffee-oat milk advocates who could speak authentically about the brand’s products. 

The “Barista Edition” label – a claim of superior performance to other plant milks – also played a critical role in this success. Oat milk brands developed formulations that addressed baristas’ main concerns about dairy alternatives: foamability, flavour neutrality, and texture consistency. 

The result was a product that created microfoam comparable to dairy milk without overpowering the delicate flavours of espresso. Many baristas were impressed and quickly embraced oat milk as the new alternative to dairy.

Many consumers agreed, persuaded by its creamy texture, neutral flavour, and track record for sustainability. In 2022, coinciding with the growing global vegan movement, retail sales of oat milk increased by more than 50% to over US$527 million in the US alone.

A growing backlash against plant milks

Despite their initial success, plant milks have faced mounting criticism in recent years. Health-conscious consumers are increasingly scrutinising the nutritional value of these products – specialty coffee’s favourite, oat milk, in particular.

After reports that oat milk may spike blood glucose levels, the historically “healthy” drink came under fire.

The broader movement against ultra-processed foods has also affected consumer perception of plant milks overall. The term refers to foods that contain ingredients not commonly found in home kitchens and have undergone multiple stages of processing.

Social media “FitTok” influencers have started to highlight the extensive processing required to transform oats, almonds, and other plant-based ingredients into milk-like beverages. These products often include emulsifiers, stabilisers, and other additives that conflict with the clean-eating philosophy that more consumers are adopting.

Current controversy also surrounds the processed seed oils used to make oat milk achieve its desirable creamy texture. Some believe they lead to a number of health issues, although many of these claims have been disputed.

“Ultra-processed is a catch-all term that has been oversimplified to mean ‘bad and unhealthy’, by default,” says Toby, the EMEA Barista Development Manager at Oatly. “We’re proud of our fortified products, and we also understand that it’s important for some people to have fewer ingredients, which is why we also have organic options.”

Oatly launched its Barista Organic Oat Drink, which contains organic oats, water, rapeseed oil, unsaturated fat, sea salt, and potassium carbonate, as part of efforts to diversify. 

But many consumers still question whether the perceived environmental and ethical benefits of oat and other plant milks justify the nutritional trade-offs.

“Many consumers are questioning the ingredient list and sugar content of some plant milks. There is a growing awareness around additives and processing levels, and people are prioritising clean label products, whether dairy or plant-based,” says Maria, the marketing manager at MILBOK, a specialty dairy brand designed for baristas.

“This is opening up space for dairy again, especially when it’s transparently and ethically produced, as well as minimally processed,” she adds.

Global dairy consumption is on the rise

Concurrent with the growing scepticism about plant milk’s nutritional value, global dairy consumption has experienced notable growth.

USDA data shows Americans consumed a record amount of dairy products in 2023, up by 3% in volume over the past five years. Meanwhile, Asia will continue to see the strongest growth in demand for dairy products over the next few years, and the Middle East and Africa are also poised for significant growth.

UK supermarkets are also reporting rising sales of whole-fat milk in line with the shift away from highly processed foods. In 2024, UK supermarket sales of whole milk grew faster than those of plant-based milk, up by 1.2% and 0.9%, respectively, according to data from Kantar.

Rising disposable income and rapidly expanding café culture have created substantial demand for premium dairy products in the Southeast Asian market, in particular. This regional growth has global implications, influencing trends in the international dairy market.

Dairy companies are now recognising the opportunity to reclaim market share in specialty coffee. By branding cow’s milk as the “original barista milk”, they can emphasise its natural foaming properties, flavour compatibility with coffee, and higher protein content.

“The rise of plant milks challenged dairy brands to rethink how we communicate our value, especially in the specialty coffee scene, where taste, texture, and performance matter,” Maria explains. “It pushed us to not only improve product quality but also clearly define what makes premium dairy stand out.”

How is dairy innovating in coffee?

Recent innovation in dairy processing has resulted in premium products specifically designed for specialty coffee.

Freeze-distilled, or cryo-dessicated milk, is just one example. This process involves the application of low temperatures and different pressures to remove moisture, effectively doubling the concentration of sugars and fats. The result is cow’s milk with enhanced sweetness and mouthfeel without the addition of other ingredients – appealing to health-conscious consumers.

Competitions like the World Barista Championship have inadvertently promoted these products. Year after year, baristas increasingly use freeze-distilled milks in their routines, showcasing how the higher sugar and fat contents can enhance the coffee experience. 

In fact, cryo-dessicated milks have started to become just as common as WDT tools and other high-end espresso gadgets at the WBC. This level of visibility has generated broader interest, as baristas seek to replicate competition-quality beverages in coffee shops.

Also important to note, however, is that more WBC competitors are creating freeze-distilled dairy and plant milk blends. Coconut and oat milk are two popular options to pair with cow’s milk, increasing fat content or enhancing mouthfeel. 

Ultimately, this underscores the evolution of milk pairings in specialty coffee. Increasingly, dairy or plant milks alone don’t make the cut in competition settings.

So what does this mean for specialty coffee?

With data indicating a resurgence in global dairy consumption, coffee shops may need to reconsider their milk offerings. Those which found success positioning plant milks, especially oat, as the go-to option could risk alienating customers who are increasing their dairy intake.

Simultaneously, the shift away from ultra-processed foods means coffee shops may also have to focus more closely on the quality of both their dairy and plant milk offerings.

“As more people look into the ingredients of what they’re drinking, they start asking more questions: Where is it from? What’s in it? How was it processed?” Maria says. “Cow’s milk that is simple, additive-free, and made for quality rather than shelf life is suddenly more appealing again.”

To capitalise on this growing trend, more coffee shops have switched to higher-quality suppliers, highlighting the origin and quality of their dairy products. Single-farm milks and grass-fed dairy have become more common, as brands like The Estate Dairy and Brades in the UK, for instance, increasingly focus on coffee shops as their main B2B consumer base.

However, the environmental and ethical considerations that initially drove the surge in plant milk consumption still remain relevant. Research from the Vegan Society shows that over 25 million people tried following a vegan diet globally in January 2025 as they seek to reduce consumption of animal-based products for a number of reasons.

“In the UK, oat drink continues to be the number one choice in terms of plant-based milk, making up 55% of consumer sales,” Toby tells me. “This points to oat drink remaining dominant in coffee shops, particularly as customised and signature drink trends grow.

“Between 2024 and 2025, the number of people choosing oat drink in their coffee in the big four UK coffee chains increased from 14% to 15%,” he adds. “In specialty coffee, oat drink usage is even higher, with a number of our key partners sharing that 40% to 60% of their coffees are now made with oat drink.”

Rather than a reversal of plant milk adoption, the current trend suggests a rebalancing of options that acknowledges the strengths of both high-quality dairy and plant-based options.

“It’s not about dairy versus plant-based anymore; it’s about choosing quality and transparency. Specialty coffee deserves better than a one-size-fits-all approach,” Maria says. “Whether people choose dairy or plant-based, the goal should always be to enhance the drink, not just follow a trend.”

The coffee shops that successfully navigate this transition will likely offer diverse, high-quality dairy and plant milk options that cater to varied consumer preferences.

Specialty coffee’s relationship with plant milks is clearly evolving as consumer awareness and preferences shift. While plant-based options have an established presence in coffee culture, emerging health concerns and debates over food processing have created opportunities for dairy to reclaim market share. 

However, the future of milk in coffee shops won’t be defined by the dominance of a single option but rather the coexistence of premium options across multiple categories. In turn, consumers can make more informed choices based on their priorities and preferences.

Enjoyed this? Then read our article on why coffee shops need to focus more on milk quality.

Photo credits: MILBOK, Sugi Ye, Marek Stratil

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