And retail analysts TNS say the goat milk industry is now worth 25 million pounds a year, with last year's demand grown by 11 per cent.
Until the 1970s, there was barely any demand for goat's milk, which was hardly registered as part of general milk sales.
Tesco says that the recent shot is caused by improved farming methods and shoppers' consciousness of its health benefits such as improving digestion, eczema and asthma.
"It is official - the goat has become the trendiest animal in the farmyard. It is an amazing turnaround, because even until six or seven years ago the average shopper would have turned their nose up at goat's milk without even trying it mainly because of its old fashioned image," the Scotsman quoted Jessica Litman, goat milk buyer for Tesco, as saying.
"The change has come about because of health reasons and also because UK goat farming methods have improved which has led to better quality milk," she added.
Mike Hind, of Britain's biggest goat dairy in Seaton Ross, Yorkshire, delivers over half of Britain's goat milk. His farm is a witness to the recent boom in goat milk demand. According to him, demand for goat milk has quadrupled over the last seven years and they have recently bought an 850 acre site for goat herding in order to meet the towering demand for milk and other products.
"Health reasons play a strong part in the growing success of goat's milk and we have been running a survey asking people what benefits they derive from it, Hind said.
"We have data from more than 10,000 customers and improved digestion is the biggest benefit quoted," he added.
Goat's milk is particularly beneficial for people suffering from lactose intolerance. Though both cow's and goat's milk contains lactose, the different proteins found in the latter make it easier to digest.