Plant-based Dairy Market

Market Snapshot

The plant based dairy market revenue totalled US$ 11 Bn for 2020, according to Fact.MR- a market research and competitive intelligence provider. The overall plant based dairy market is expected to reach US$ 32 Bn by 2031 end, growing at a CAGR of around 11%. The demand for plant based dairy product will accelerate with top 5 providers holding 65% of plant based dairy market in 2021.

Key Points Covered in Plant based Dairy Industry Survey

• Market Estimates and Forecasts 2016-2031
• Key drivers and restraints shaping market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Plant based dairy and how to navigate
• Recommendation on key winning strategies.

Consumption Analysis of Plant Based Dairy from 2016-2020 Vs Future Outlook 2021-2031

Global market for plant based dairy products flourished at a CAGR Of 9% to reach US$ 11 Bn by 2020. Substantial developments in the organic food industry surged the demand for plant-based dairy across the globe.

Consumption outlook for alternative dairy products, according to Fact.MR’s report, is fairly progressive, projected to reach US$ 32 Bn following a CAGR of 11% over the forecast period 2021-2031.

Based on product, almond milk is the category leader, followed by oat milk, then soy milk. Oat milk has witnessed massive growth over the recent years, rising from a tiny segment of the market in 2018 to the second largest plant-based milk product type in 2020.

According to Plant-Based Foods Association (PBFA), Plant-based milk — the largest plant-based category has reached US$ 2.5 Bn, accounting for 35% of the total plant-based foods market.

Which Factors Will Induce a Change in the Demand For Plant-Based Dairy During the Forecast Period?

Swelling number of lactose intolerance cases and milk-related allergies in infants stimulates the demand for alternative milk worldwide. Furthermore, environmental concerns, high cholesterol content, and the presence of animal growth hormones in milk are driving the demand for dairy alternatives.

Additionally, growing awareness among consumers about the benefits offered by a vegan diet is one of the prominent factors impelling the demand for dairy alternative products across the world.

Moreover, expanding popularity of organic foods has generated significant grounds for alternative dairy products, anticipated to expand the market over the forecast period.

Which are Some Lucrative Growth Opportunities for Plant Based Dairy Products?

The Plant Based Foods Association reports that sales of emerging categories of plant based dairy products surpassed US$7 Bn and reached double digit gains of 27% in 2020. However, plant-based milk expanded twice as fast as cow’s milk which opened new doors of opportunities for manufacturers.

Additionally, the International Food Information Council (IFIC) study on consumers’ level of trust in labeling prompted the desire to know more about any product, which embodies an untapped growth opportunity for manufacturers. Favorable marketing and correct positioning of dairy alternatives are stimulating demand from emerging economies.

How Will Changing Trends Impact the Plant Based Dairy Market?

Evolving consumer trends such as the demand for healthy and 'clean label' products, surged demand for 'functional foods' and the growth in protein substitutes are fostering demand for plant-based dairy products.

Furthermore, cheese alternatives are predicted to be the “next frontier” in plant-based innovation, Advancements in ingredient technology and processing are firing dairy-alternative innovation.

Dairy is meeting the needs of a number of trending diets, including low-FODMAP, keto, and paleo. While most alternatives would be avoided on a low-FODMAP diet, an eating regime that eliminates fermentable short-chain carbohydrates found in many plants, alternatives are popular among paleo, Whole30, and keto dieters.

Country-wise insights

Why the U.S. Experiencing Heightened Demand for Plant-Based Dairy?

U.S dairy consumers are opting for dairy alternatives owing to lactose intolerance, dairy sensitivity, or allergy. Soy and almond milk are the preferred milk alternatives. A CAGR of 10% is estimated for the U.S market.

The burgeoning popularity of organic milk, owing to a rising number of health-conscious consumers is encouraging the dairy alternative producers to expand. As a result of increased indulgence and demand for on-the-go snacks, higher demand for soy desserts has been observed in the U.S.

Why is Plant-Based Dairy Flourishing in China?

Rising population and surging disposable incomes have resulted in spurring demand for dairy alternatives in China. The organic dairy market touched a value of US$ 1.1 Bn in 2020, with a projected expansion rate of 13.6% throughout the forecast period.

Subsequently, raising awareness about the extensive use of fertilizers boosted the market growth for alternative dairy products and is expected to exhibit a strong surge in demand over the next decade.

Soy milk is the largest selling dairy alternative contributes 9.3% of revenue to the Chinese market and is projected to record a CAGR of 5.6% during the forecast period (2021-2031).

Category-wise insights:

Why is Almond Milk Gaining Traction in the Global Market?

Almond milk sales reached a value of US$ 6.5 Bn in 2020, likely to expand at a CAGR of 14.2% over the forecast period 2021-2031. Rising cases of lactose intolerance and hypercholesterolemia are forecast to fuel the market demand over the projected period.

Due to aesthetic benefits associated with almond milk such as low cholesterol value, it has become a popular choice, especially among vegan consumers. Owing to various applications in frozen desserts and personal care products, the market for almond milk witnessed significant growth.

How do Online Stores Aid Distribution of Plant-Based Dairy Products?

Online stores are easily accessible and a cost-efficient way of market distribution of alternative dairy products such as cheese, yogurts, frozen desserts, etc. Discounted offerings over the traditional prices have surged the adoption of internet-based sales channels worldwide. 

Subsequently, the demand for plant-based dairy products was boosted not only in developed countries but also in developing countries where the retail stores are located in distant geographies. Almost 2 out of 5 sales occur across online channels.

Competitive Landscape

Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advancements, mergers, and acquisitions.   

• Key manufacturer Danone SA, the French dairy giant made a move into dairy-free by acquiring WhiteWave Foods, the US manufacturer of the Alpro and Silk plant-based dairy-alternative ranges, for US$ 12.5 Bn.
• In February 2019, Danone announced it was opening a new building at its facility in DuBois, Pennsylvania, dedicated to plant-based food products including yogurt.
• In December 2019, Danone’s French dairy peer Lactalis announced it was taking its Siggi’s yogurt brand into the plant-based market.
• In March 2020, Arla announced the launch of a range of chilled, oat-based drinks, to be marketed under a new brand, Jörd, and initially available in Denmark, Sweden and the U.K.

Report Scope

Key Segments Covered

• Product

  • Plant Based Milk (by Protein Source)
    • Almonds
    • Cashews
    • Coconuts
    • Hazelnuts
    • Oats
    • Rice
    • Soy
    • Flax
    • Hemp
    • Macadamia
    • Peanuts
    • Pistachios
    • Quinoa
    • Sesame
    • Others
  • Plant Based Frozen Desserts (by Protein Source)
    • Avocados
    • Oats
    • Cashews
    • Soy
    • Almonds
    • Coconuts
  • Plant Based Butter (by Form)
    • Sticks
    • Spread
  • Plant Based Creamers (by Protein Source)
    • Soy
    • Coconuts
    • Almonds
    • Others
  • Plant Based Yogurt (by Protein Source)
    • Oats
    • Cashews
    • Soy
    • Almonds
    • Coconuts
    • Others
  • Plant Based Cheese (by Form)
    • Blocks and Wedges
    • Creams, Sauces and Spreads
    • Shredded and Crated
    • Sliced

• Nature

  • Organic Plant Based Dairy
  • Conventional Plant Based Dairy

• End Use

  • Plant Based Dairy for B2B Consumers
    • Bakery and Confectionary
    • Snacks and Savouries
    • Ready Meals
    • HoReCa
    • Other Food Products
  • Plant Based Dairy for B2C Consumers
    • HoReCa
    • Household

• Sales Channel

  • Plant Based Dairy Sales through Direct Channels
  • Plant Based Dairy Sales through Retail Channels
    • Supermarkets and Hypermarkets
    • Convenience Stores
    • Independent Grocery Stores
    • Specialty Stores
    • Online Stores

Plant Based Dairy Market- Scope of Report

A recent study by Fact.MR on the automotive market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging associated with the manufacturing of the plant based dairy.

The study also provides the dynamics responsible for influencing the future status of the plant based dairy products market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report.

A list of prominent companies operating in the plant based dairy market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers a comprehensive analysis of diverse features, including production capacities, demand, product developments, revenue generation, and sales of the plant based dairy across the globe.

A comprehensive estimate of the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales of the plant based dairy during the forecast period. Price point comparison by region with the global average price is also considered in the study.

Key Questions Answered in Report

• Which are the most lucrative plant based dairy markets?
• Which factors will impact the growth of plant based dairy?
• How will changing trends impact the strategies of market players?
• How can market players capture the low-hanging opportunities across regions?
• Which companies are leading the plant based dairy industry?
• What are the winning strategies of stakeholders in the market?

Analysis on Market Size Evaluation

The market has been analyzed for each segment in terms of volume (‘000 Units) and value (US$ Mn).

Estimates at global and regional levels for the plant based dairy market are available in terms of “US$ Mn” for value and in “‘000 Units” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global plant based dairy market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which has helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the plant based dairy market during the forecast period.

Country-specific valuation on demand for plant based dairy market has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value & volume for emerging countries has also been included in the report.

In-depth Analysis on Competition Analysis

The report sheds light on leading manufacturers of the plant based dairy market, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in producing plant based dairy products have been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permit report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which includes essentials such as product portfolios and key strategies, along with an all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the plant based dairy market domain. 

Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the plant based dairy industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the draw conclusions.

Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.