Germans ditch cow’s milk as plant-based alternatives surge in popularity
Germans are drinking less cow’s milk than ever before. In 2024, the average person consumed just 46.2kg—down 15.5% from a decade ago. Meanwhile, demand for plant-based alternatives like oat milk is rising, with nearly €600 million spent on them last year alone.
Oat milk leads the market, with 48% of respondents drinking it regularly. Fortified plant-based options are especially popular, as 44% of Germans say they would pay extra for added nutrients. Despite this interest, price remains a major barrier for many buyers.
Currently, plant-based milk faces a 19% VAT rate—almost three times the 7% charged on cow’s milk. This difference has sparked calls for change. A petition backed by retailers like REWE and brands such as Oatly, vly, and Berief is pushing the government to equalise the tax. Their argument is simple: lower costs could encourage more people to switch to plant-based options like oat milk.
Public support for the idea is strong. Surveys show 61% of Germans back a tax cut on plant-based milk. Even among those who don’t currently buy it, 17% say a reduced rate would persuade them to try. Yet awareness of the existing dairy tax break remains low—only 34% know cow’s milk is taxed at a lower rate.
The shift away from dairy is clear, with plant-based milk now the second-largest vegan product category in Germany. If the tax rate drops, industry experts expect even more consumers to make the switch to plant-based options like oat milk. For now, the debate continues over whether pricing should reflect changing habits.
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