Report Highlights

Almond Drinks in the U.S.: Market Overview

Almond drinks in the United States were valued at USD 2.1 billion at retail in 2024, within a plant-based milk category shaped as much by federal nutrition rules as by taste. Almond drinks lack a federal standard of identity comparable to dairy milk under 21 CFR 131.110, so the Food and Drug Administration regulates them as foods under the Federal Food, Drug, and Cosmetic Act. Policy therefore set the category's current form: unsweetened formulations, calcium and vitamin D fortification, and shelf-stable cartons reflect regulatory expectations as much as consumer demand.

Market structure splits government-shaped supply from private brand leadership. The Almond Board of California operates under Federal Marketing Order 981, authorized by the Agricultural Marketing Agreement Act of 1937 and supervised by the USDA Agricultural Marketing Service, which sets handler assessments and research priorities that shape raw almond pricing. Commercial branding, distribution and product innovation, however, sit with private companies. Blue Diamond Growers leads through Almond Breeze, Danone North America sells Silk, and private-label almond drinks from Trader Joe's and Walmart's Great Value compete on price.

Policy-Driven Growth in U.S. Almond Drinks

Three federal mechanisms drive demand. The Dietary Guidelines for Americans, 2020–2025, issued jointly by USDA and HHS, limit added sugars to under 10 percent of daily calories, steering shoppers toward unsweetened almond drinks. The USDA Food and Nutrition Service's 2016 school meal flexibility rule amended 7 CFR 210.10 to allow non-dairy milk substitutes in the National School Lunch Program when a medical statement or parental request is on file, converting approval into recurring institutional volume.

The third mechanism is supply-side promotion. The Almond Board of California, funded by handler assessments under Federal Marketing Order 981, finances consumer marketing and nutrition research that positions almond beverages within the broader almond health narrative. Because the order is authorized under the Agricultural Marketing Agreement Act of 1937, processors such as Blue Diamond Growers receive category-level advertising that lowers their brand spend and keeps almond drinks priced competitively against soy and oat alternatives.

Regulatory Barriers and Compliance Costs

The most consequential barrier is the naming and nutrition labeling regime administered by the FDA Human Foods Program. Because almond drinks lack a standard of identity, the FDA's 2018 draft guidance on labeling plant-based milk alternatives expects nutrient-by-nutrient comparison with cow's milk, requiring processors to run laboratory analysis on each SKU. Products that fall short of dairy-equivalent calcium and vitamin D levels must carry an imitation designation, a marketing penalty that falls hardest on private-label and value brands.

Water is the second barrier. Under the Sustainable Groundwater Management Act of 2014, administered through local Groundwater Sustainability Agencies overseen by the California Department of Water Resources, San Joaquin Valley almond orchards face pumping restrictions that raise raw almond costs. Separately, the USDA Food and Nutrition Service's WIC food package rule, 7 CFR 246.10, lists only soy beverage as a non-dairy milk substitute, so almond drinks cannot be redeemed through WIC, closing a high-volume low-income channel.

Policy-Created Opportunities in the U.S.

The FDA's proposed front-of-package nutrition labeling rule, published in January 2025, would require a Nutrition Info Box displaying calories, saturated fat, sodium and added sugars. Unsweetened almond drinks with no added sugars gain a visible shelf advantage, and processors that reformulate early can use that box as a differentiator against sweetened competitors. Fortified almond beverages that meet 7 CFR 210.10 nutrient parity also become eligible for school procurement, a channel currently closed to most almond brands.

The FSMA Section 204 Food Traceability Rule, with compliance now due July 20, 2028, creates a second opening for suppliers that can deliver electronic key data elements across almond supply chains. Processors that digitize lot-level traceability from orchard to carton will meet a binding requirement ahead of smaller competitors. Retail buyers, including Kroger through its Simple Truth almond drink line, will prioritize certified suppliers to satisfy their own compliance obligations.

Market at a Glance

Leading Market Participants

• Blue Diamond Growers
• Danone North America
• Califia Farms
• Malk Organics
• Pacific Foods
• Elmhurst 1925
• Trader Joe's
• Walmart Great Value
• Kirkland Signature
• Kroger Simple Truth

Regulatory and Policy Environment

The primary legislation governing almond drinks is the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. 301 et seq., supplemented by the FDA Food Safety Modernization Act of 2011 (Public Law 111-353). Its preventive controls rule at 21 CFR Part 117 requires written food safety plans at almond processing facilities, while labeling falls under 21 CFR Part 101 and the FDA's 2018 draft guidance on plant-based milk alternatives. Almond marketing orders operate under the Agricultural Marketing Agreement Act of 1937, enforced through Federal Marketing Order 981 by the USDA Agricultural Marketing Service and the Almond Board of California.

Upcoming changes include finalization of the FDA front-of-package nutrition labeling rule proposed in January 2025 and the FSMA Section 204 traceability requirements, with compliance due July 20, 2028. Relative to regional peers, the U.S. framework is looser than Canada's Food and Drug Regulations, which condition milk-alternative labeling on defined nutrient equivalence, and far more permissive than the EU's Regulation (EU) No 1308/2013 Annex VII, which reserves dairy terms for animal milk.

Long-Term Policy Outlook for U.S. Almond Drinks

Through 2032, each revision of the Dietary Guidelines will tighten sugar and nutrient-density expectations, reinforcing demand for unsweetened fortified almond drinks. The FDA front-of-package rule will bring added-sugar disclosure to every almond drink carton, rewarding brands such as Blue Diamond Growers that already sell unsweetened formulations. Retailers will treat that disclosure as a shelf-placement criterion within the forecast period.

Water policy represents the largest structural shift. Continued Sustainable Groundwater Management Act enforcement in critically overdrafted San Joaquin Valley basins will reduce irrigated acreage and raise almond raw-material costs, favoring consolidated sourcing over smaller independent brands. Adding almond beverages to WIC eligibility would expand low-income volume materially, while continued exclusion keeps the category dependent on retail and foodservice channels.