(Entertainment-NewsWire.com, July 29, 2022 ) Meticulous Research® – leading global market research company published a research report titled “Dairy Alternatives Market by Product Type (Plant Milk, Cheese, Yogurt, Butter, Ice Cream), Source (Almond Protein, Soy Protein, Wheat Protein), and Distribution Channel (Business to Business and Business to Customers) – Global Forecast to 2027”. According to this latest publication from Meticulous Research®, the dairy alternatives market is expected to grow at a CAGR of 11.2% from 2020 to 2027 to reach $44.89 billion by 2027.
The high growth of dairy alternatives market is mainly attributed to increasing intolerance for animal proteins, nutritional benefits offered by plant-based dairy products, growing investments in dairy alternatives, and increasing vegan and vegetarian population. Moreover, growing demand for vegan products from emerging economies- Asia-pacific, Latin America, and Middle East and Africa expected to create lucrative opportunities for players operating in this market. However, preference for animal-based products and growing preference for soy and gluten-free products are expected to hamper the adoption of dairy alternatives to some extent.
Growing Investments in Dairy Alternatives Drives the Dairy Alternatives Market
In recent years, the alternative dairy food industry has been witnessing investments from large operators looking to capitalize on the veganism trend and surging demand for sustainable foods. Alongside the growing risk profile of livestock production, well-established dairy players are increasingly under attack. This protein diversification has the potential to transform a food company’s core business and value proposition due to its growth, profitability, risk exposure, and ability to compete and innovate.
The growing trend of millennials adopting flexitarian and vegan diets signals a change in purchasing habits that is a significant shift from that of earlier generations. Companies across the food value chain, from producers to retailers, are already investing in these opportunities. Some companies are hedging against or preparing for the decline of demand for animal products by investing in other companies producing alternatives. The market has received investment or funding from several high-profile individuals, financial investors, and companies in the past few years. There was more investment in the alternative proteins market in the first quarter of 2020 than in all of 2019 (Source: Good Food Institute). In 2019, U.S. plant-based meat, egg, and dairy companies received more than $747 million in investments. This is the most capital raised in any single year in the industry’s history.
Thus, growing venture capital investments, which is supporting the growth of plant-based dairy product companies and increasing focus of leading dairy product manufacturers to build up a portfolio of investments in plant-based proteins is expected to drive the growth of the global dairy alternatives.
Key Findings in the Global Dairy Alternatives Market Study
Based on product type, the dairy alternatives market is segmented into plant-based milk, cheese, yogurt, butter, ice-cream, creamer, and other dairy alternatives. Among these, the plant-based milk segment dominated with the largest share of the overall dairy alternatives market in 2021, and is also expected to continue its dominance during the analysis period. The increasing prevalence of lactose intolerance and consumer preference for vegan diets are factors driving the demand for plant-based milk alternatives, such as almond and soy milk. The plant-based yogurt segment is expected to grow at the fastest CAGR in the forecast period. Primarily, the demand for plant-based yogurt is increasing at a higher rate in developed countries due to growing number of vegan and health conscious consumers.
Based on the source, the dairy alternatives market is segmented into almond protein, soy protein, wheat protein, pea protein, rice protein, and other sources. The almond protein segment commanded the largest share of the overall dairy alternatives market in 2021. The large share of this segment is mainly attributed to its easy availability, lower cost than other sources, higher consumer acceptance level, and increasing application of almond protein in various plant-based dairy product categories. This segment also expected to grow at the fastest CAGR during the forecast period.
Based on the distribution channel, the dairy alternatives market is mainly segmented into business to business (B2B) and business to customers (B2C). The B2C distribution channel segment accounted the largest share of the overall dairy alternatives market in 2021. The large share of this market is mainly attributed to consumers preference for shopping from brick-and-mortar grocers due to easy access and availability and growing dairy alternatives sales from B2C channel with growing number of supermarkets and hypermarkets. This segment is also projected to grow the fastest CAGR during the forecast.
Geographically, this research report provides a comprehensive analysis for the five major geographies: North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2021, Europe commanded the major share of the overall dairy alternatives market. The leading position of the Europe in dairy alternatives market is primarily attributed to the well-established food sector in the region with huge demand for processed foods, higher vegan & vegetarian trend, higher awareness on protein rich diet consumption, and high investments into the innovation of dairy alternatives sector. However, the Asia-Pacific region is projected to grow at a significant pace in the forecast period. The rapid growth of this region mainly attributed to the rising awareness about the protein rich diet, increasing health consciousness, higher vegan & vegetarian population base, growing technological advancements in food & beverages industry across the region and especially in the countries like China and India, growing economy, rapid growth in the urbanization, growing middle class population and increasing raw material availability.
The key players operating in the global dairy alternatives market are Danone SA (France), Follow Your Heart (U.S.), The Hain Celestial Group, Inc. (U.S.), Sahmyook Foods (South Korea), Sanitarium health and wellbeing company (Australia), AXIOM Foods, Inc. (U.S.), Daiya Foods, Inc. (Canada), Earth's Own Food Company, Inc. (Canada), VBItes Food, Ltd. (U.K.), SunOpta Inc. (Canada), Valsoia SpA (Italy), and Freedom Foods Group Limited (Australia) among others.
The major companies in the global-dairy alternative market have implemented various strategies over the years to expand their product offerings, global footprint, and augment their market share. New product launches were the most preferred growth strategy which enabled companies to broaden their product portfolios, advance the capabilities of existing products, cater to the changing demands of users, and ensure a competitive edge in the global dairy alternatives market. Leading players who adopted this strategy include Sahmyook Foods (South Korea), Daiya Foods Inc. (Canada), and Vbites Food Ltd. (U.K.).