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Data from U.S. households for calendar year 2014 were used in examining demographic and economic factors affecting demand for dairy alternative beverages such as coconut milk, almond milk, soymilk, and lactose free milk using Heckman two-step procedure. Preliminary analysis of data reveal that the own-price elasiticity of demand for almond milk, soymilk, dairy milk in the United States is -3.50, -1.68,and -0.53 respectively. Soymilk is found to be a substitute for almond milk and white milk, while white milk was found to be a substitute for soymilk. Income, age, employment status, education level, race, ethnicity, region and presence of children in a household are significant drivers of demand for soymilk and almond milk. Sample selection bias was statistically significant.


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