WORLD – As demand for plant-based food products surges, a report by Future Market Insights (FMI) suggests that the revenue of the dairy alternatives market will reach US$34.6 billion by 2029.
This category is expected to register a CAGR of 8.3% during the forecast period boosted by an upsurge in demand for vegan diets as consumers turn to healthier food alternatives.
The report has identified the thriving trend of veganism as one of the primary factors triggering the demand for dairy alternatives, in addition to health-related concerns such as allergies from milk and lactose intolerance.
Increased awareness of the health-related issues regarding dairy products is pushing consumers into non-dairy milk.
This category is gaining ground more and more over the dairy counterparts with launches in different styles, product categories, and types, supported by growing research and development, product line extensions, and marketing campaigns.
Dairy alternatives category is quickly growing for reasons including better health, growing concerns for animal welfare, reducing their impact on the planet.
Grocery stores are deemed to be one of the places where dairy alternatives are becoming more available with products such as soy milk, almond milk, coconut milk, rice milk, cashew milk, flax milk, corn milk.
However, one of the factors impeding an even more faster growth trajectory of this segment is that consumers perceive dairy alternatives to be overpriced, which is not always the case.
Dairy alternative launches more than doubles
According to FMI, over the past five years, global dairy alternative launches have more than doubled with dairy alternative beverages having accounted for more than 8% of world dairy launches.
As the way people do shopping change, supermarkets and hypermarkets in developing countries have become the main selling point of dairy alternatives.
This is also boosted by an upsurge in e-retail for the sales of dairy alternatives.
Evolving consumer trends such as the change in diets and growing health awareness are expected to provide an upsurge to the dairy alternatives market.
The segment is attracting more players while existing companies are investing heavily in research and development to follow on-going trends by providing diverse products as the demand increases.
Thus, competition in dairy alternatives market is increasing at a rapid pace.
The dairy alternatives market in Asia Pacific is expected to lead the market in terms of share, followed by North America and Europe.
FMI indicates that in Latin America where the opportunity for growth is highest among all regions will see more players entering the business.
Key players in the market are The Hain Celestial Group, Earths Own Food Company, Dohler GmBh, Organic Valley, Daiya Foods Inc., SunOpta, and Danone S.A.
