Soymilk surge in sales makes it a contender for dairy dollars

Soymilk, the alternative for the lactose-intolerant crowd, is increasingly becoming a contender in the dairy-beverage market.

The soy-food industry has grown 13 percent to $3.65 billion in sales in 2002, according to the SoyFoods Association of North America, a Washington trade group.

Soymilk sales have soared from $100 million in 1995 to $594 million in 2002, making up 87 percent of the non-dairy milk alternatives in mainstream markets, said Nancy Chapman, executive director for the soy-foods trade group.

“Soymilk is becoming available in every grocery store, not just the Whole Foods stores, and that has made the biggest impact on sales,” Ms. Chapman said.

Soymilk generally comes from whole soybeans that are cooked and filtered to a pulp. Manufacturers also hydrate full-fat soy flour or they use high-protein soy solids to make the milk, which comes in powder or liquid form.

Ms. Chapman also credits the high rise in sales to different packaging of soymilk, a burst in new flavor blends, including chocolate, mocha and fruit juice, and the new placement of refrigerated soymilk next to regular milk.

Yogurt, cheese, sour cream and frozen-food producers also are more inclined to market a line of products containing soy milk for lactose-intolerant and other health-conscious consumers, she added.

“More people here are seeing the health benefits of soy milk,” which include lowering cholesterol, strengthening bones and possibly minimizing the risk of prostate and breast cancer, Ms. Chapman said.

But soy milk has high levels of polyunsaturated fat — 4 grams — 13 grams of carbohydrates and 130 calories per serving. It also lacks most nutrients found in a glass of milk, such as calcium and potassium, said Susan Ruland, spokeswoman for the International Dairy Foods Association, a Washington trade group.

Production of soymilk jumped from just 13.6 million gallons in 1995 to 104 million gallons in 2002. But soymilk is still a “niche market” compared with dairy manufacturers, who produced 6.3 billion gallons of milk in 2002, Ms. Ruland said.

A recent study also suggests more companies are diluting the health benefits of soy-based products by increasing the amount of sugar to ensure better flavor, according to the Center for Food Reformulation at Tiax, a Cambridge, Mass., technology-development company.