Dairy alternatives market grows as popularity of veganism increases
As veganism is accelerating towards the mainstream, the demand for plant-based food products (in particular dairy alternatives) has increased.
This is according to a recent market study (Dairy Alternatives Market by Future Market Insights), which predicts that the revenue of the dairy alternatives market will reach US$ 34.6 billion by 2029. In terms of value, the global dairy alternatives market is projected to register a CAGR of 8.3% during the forecast period.
The trend of veganism is a primary factor for this demand and health-related concerns such as allergies from milk and lactose intolerance are playing a vital role in the growth of this market. With the increased exposure to the dangers of dairy products, more consumers are leaning towards non-dairy milk, which, in turn, is providing a significant boost to the dairy alternatives market.
A further reason for this surge in sales is due to consumers’ growing concerns for animal welfare and reducing their impact on the planet.
Dairy alternatives have been competing in the dairy space now for decades, but the competition has intensified as dairy alternatives are expanding in styles, product categories, and types. Growing research and development, product line extensions, and marketing campaigns have led to increased sales of dairy alternatives.
The substitutes for dairy available in the market, include soy milk, almond milk, coconut milk, rice milk, cashew milk, flax milk, corn milk, and many more. Plant-based milk, which is incorporated in numerous food products is now extensively available commercially. Many consumers are under the impression that a vegan diet can be overpriced; however, nutritious non-dairy foods can prove to be a lot cheaper than a dairy-based or omnivorous diet.
Dairy alternative beverages accounted for over 8% of world dairy launches and global dairy alternative launches have more than doubled over five years. These launches have attracted keen interest from individuals, which have boosted the sales of dairy alternatives.
The thriving demand for healthier foods and modern retail formats such as supermarkets/hypermarkets in developing countries are assisting these sales. Also, an upsurge in e-retail for the sales of dairy alternatives has been observed in the last two years.
Competition in dairy alternatives market is increasing, with more players entering the business. However, existing companies seem to also follow on-going trends by providing diverse products as the demand increases.
In regards to region, the dairy alternatives market in Asia Pacific is expected to lead the market in terms of share, and North America and Europe are expected to record a relatively higher CAGR. Also, Latin America is the prominent region for the players wanting to enter the market, where the opportunity for growth is highest among all regions.