Nespresso partners with vegan alternative amid milk inflation

Nespresso partners with vegan alternative amid milk inflation

After surviving half a day of classes, entering the school’s cafeteria felt like a reward. It was the only time during the school day when kids were free to talk with their classmates as much as they wanted without risking getting suspended for being a distraction.  

Not only was lunchtime a much-needed break, but it was also the meal we looked forward to the most. Although the lunch line sometimes felt longer than waiting to get on a new rollercoaster at Disney World, it was worth it, especially on pizza days.

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One cannot forget the joy they felt when grabbing a tray and getting a hot pizza slice with a side of veggies, an apple, and, of course, the iconic milk carton, from which one could choose between regular, strawberry, or chocolate. 

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As weird as eating pizza while chugging some milk may sound, it became a weekly routine in school as much as it was at home. Like our parents always told us, it made for a perfectly balanced meal, and drinking milk was the norm unless we didn’t want to grow into strong adults.   

The demand for milk alternatives has increased over the years

Although milk was once a grocery staple for all American families and public schools, as generations evolved and new studies emerged, drinking full-fat dairy milk didn’t seem as healthy, environmentally conscious, or ethical as it once was.

According to a study by UnivarSolutions, the demand for plant-based milk has grown by an average rate of 10% compared to dairy milk’s 3% growth rate. 

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This growth is attributed to modern-day consumer’s changes in dietary patterns triggered by health consciousness, a rise in dairy allergies and intolerances, and increased environmental focus. 

Due to the growing demand for plant-based milk, the selection and varieties have also increased, giving people more options. However, this doesn’t mean that Americans have stopped drinking milk altogether.

Milk prices projected to increase in 2025 due to inflation and production slowdowns

During the pandemic era, inflation surged to its highest level since the 1980s due to a slowdown in the global supply chain across nearly all sectors, hitting the global economy like never before. 

The economic damage that COVID-19 brought was so unexpected that even after over five years since its inception, it has been hard for most world economies to normalize because its aftermath still lingers, causing disruptions in the supply chain to this day.

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According to data from the U.S. Department of Labor, the annual inflation rate in the U.S. increased to 3% for the 12 months ending January 2025, with food up by 2.5%.

The U.S. Department of Agriculture predicts that overall dairy milk prices in 2025 will increase by around 50 cents due to its strong demand and slowdown in milk supply, which is attributed to lower cow inventory and cows not producing as much milk as they used to.  

Nespresso partners with Oatly to create a coffee capsule specifically for oatmilk 

Nespresso  (NESAF)  has joined forces with the largest oatmilk brand and popular milk alternative, Oatly, to create a limited-edition Vertuo coffee capsule made specifically for oatmilk lovers to pair with their coffee.

The Oatly Barista Edition Coffee Capsule is rich and has cereal notes with sweet aromatics when it’s combined with oatmilk.

“We’re delighted to have worked with the experts at Nespresso to finally bring to market a coffee capsule that was tried and tested especially for the millions of oatmilk lovers out there. We hope this global collaboration with Nespresso will spark curiosity in more people to find out for themselves why so many choose it in their coffee,” said Oatly Barista Development Director Toby Weedon.

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Although Nespresso doesn’t explicitly coin the rise in milk prices as the reason why it chose to partner with Oatly to develop this new capsule, the launch came at the perfect time, especially for those trying to save money.    

This latest collaboration can be purchased at Nespresso stores or through its official website. It’s available in over 15 countries, including the U.S., the UK, countries across the European Union, China, and more.  

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