Published on: January 17, 2020
Plant-based milk (plant-based liquids, alternative milk, nut milk or vegan milk) refers to manufactured, non-dairy beverages made from a water-based plant extract for flavoring and aroma. Plant milks are vegan beverages consumed as plant-based alternatives to dairy milk, and often provide a creamy mouthfeel. Plant-based liquids are typically packaged in containers similar and competitive to those used for dairy milk but cannot be labelled as "milk" within the European Union. In 2018, among the roughly 20 plants used to manufacture plant milk, almond, soy, and coconut were the highest-selling plant milks worldwide.
Our report encompasses a holistic analysis, market size and forecast, trends, growth drivers, challenges, as well as vendor analysis. The plant-based dairy market is estimated to grow at a CAGR of around 11% over the next decade.
Plant-Based Dairy can be segmented into the following:
Many factors are expected to drive growth in the plant-based dairy market during the forecast period. Our analysis identifies the following factors to be driving the growth in the plant-based dairy market:
The trend towards improving physical fitness and increased awareness for health issues has led to the popularity many plants based dietary alternatives. Cow and buffalo milk are considered to be one of the most wholesome foods from an aspect of nutritive value as it contains both micro- and macro-nutrients. However, milk derived from animals results in three times the amount of greenhouse gas emissions when compared to plant-based alternatives. This coupled with rising concerns toward animal welfare are resulting in an increasing number of consumers choosing dairy-free and lactose-free foods and beverages. It ultimately leads to increase in consumption of plant-based dairy products.
Health and food safety concerns related to animal-based food products is one of the reasons for the increasing demand for plant-based and vegan diets. Plant-based products provide more antioxidants and beneficial plant compounds than animal-based products. They are also rich in folate, magnesium, potassium, vitamin A, vitamin C, and vitamin E. They help in lowering the risk of cardiovascular disease and other metabolic disorders. The increasing vegan population globally is expected to drive the demand for vegan food products during the forecast period. The number of people adopting the vegan lifestyle is increasing in countries such as the UK, Germany, and France. In 2018, 2%-6% of the consumers in the US identified themselves as vegetarians. In 2016, the number of people searching online about veganism increased in the US. In Canada, around 3 million consumers have adopted the vegan lifestyle, which is also gaining popularity among the youth in Mexico. Thus, the growing popularity of the vegan diet and the increasing number of people adopting the vegan lifestyle will drive the growth of the global plant-based dairy market during the forecast period.
The growing levels of lactose intolerance have propelled consumers to opt for dairy-free alternatives. Several recommendations by governments and health organizations are directed towards the effective management of lactose intolerance, one of which is preferring lactose-free milk and dairy products, thereby accelerating the growth of the plant-based dairy market.
Consumers are increasingly investing on personal health and wellness compared to the past decade. Due to the increase in disposable incomes which in turn has led to growth of purchasing power of an individual, consumers are preferring more healthy life and therefore they would choose plant based dairy products as compared to traditional dairy products.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The lower level of protein present in plant-based dairy is likely to affect the popularity. The tedious process of legal and regulatory inspection, as industry associations prevent manufacturers from using labels that could misguide consumers regarding the nutritional value of the product. The global per-capita consumption of animal-based protein has been increasing gradually over the last 50 years. Owing to their health and weight management advantages, increasing number of consumers are looking for protein-rich food products. The USDA has categorized Dietary Guidelines for Americans in the age group of 3 to 50 years as requiring at least 56 grams of protein per day. The increasing demand for protein-rich food is will negatively impact the low protein plant-based dairy market.
Some of the trends that are expected to influence the market during the forecast period are listed below:
The clean label trend shows no signs of slowing down, with the consistent urge of consumers to reformulate products with no synthetics and artificial additives. As the demand for 'clean label' products continues to escalate, the consumption of plant-based dairy is expected to grow.
One of the key trends in the global plant-based dairy market is the increasing demand for healthy and nutritional products. As millennials explore sustainable, healthy plant-based alternatives to conventional staples such as milk, providers hope to cash in on this trend. The demand for plant-based protein sources has escalated significantly, resulting in significant preference for plant-based milk. The interest in veganism is soaring, especially among millennials, wherein, a significantly larger consumer base is making healthier choices.
Our report on global plant-based dairy market covers several large and small vendors active in the market including Valsoia SPAPIVA, The WhiteWave Foods Company (Danone), FREEDOM FOODS GROUP LIMITED, Earth's Own, SunOpta, Eden Foods, PANOS, Doehler, Blue Diamond Growers, Hain Celestial and Organic Valley.
The following are some of the key developments mentioned in our global plant-based dairy market report:
Backed with competitive intelligence and benchmarking, our plant-based dairy market research reports are designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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