Dairy Alternatives Market Outlook
Dairy alternatives market is garnering strength as numerous alternatives of the traditional milk products are available through various distribution channels. Manufacturers are using retail as well as online channels for the distribution of these dairy alternatives. Given the influence of social distancing and no-contact delivery, consumers are showing their reliance on online channels for purchasing dairy alternatives.
In addition, during the lockdown scenario, scarcity of milk and dairy products were recorded at numerous marketplaces. As a result, numerous individuals across the world started looking for dairy alternatives. Such a habit-breaking change is a key driver in creating a conducive environment for the dairy alternatives market. Besides this, increased focus on increasing immunity has encouraged health-conscious consumers to look for more value in their plates, which could also drive the shift from dairy-based products to dairy alternatives.
Since the consumption of digital content has increased, manufacturers are leveraging the digital platforms for effective dissemination of brand information. They have been using brand positioning tactics to reach to the lactose intolerant, health-conscious, gym-goers, and vegan individuals. Under this influence, companies are improving their customer relationships to extend their reach, thereby improving their sales opportunities.
Post COVID-19 dairy alternatives market situation seems favourable, as an increased focus on appropriate labelling is likely to attract more customers. The trend is currently observed in North America and Europe, and the same trend is being rapidly adopted in the Asia Pacific region, which presents a positive growth sign for the market.
On the flip side, the dairy alternatives market might witness a roadblock, owing to the volatility in prices of raw materials. Almonds, soy, oats, coconuts, and similar products that are used to produce milk are subjected to their availability. Increasing deforestation is leading to scarcity of raw materials, which makes dairy alternatives relatively expensive for consumers of developing countries.
TOP GROWTH INFLUENCERS - DAIRY ALTERNATIVES MARKET
Demand for Low-calorie Products on Constant Rise
Dairy alternatives offer better nutritional benefits in comparison to conventional dairy products such as milk, butter, and cheese, pushing more customers to shift to dairy alternatives. Contrary to the popular belief, increased consumption of milk does not improve bone density in adulthood, as per a study published in the Food and Nutrition Research Journal.
Dairy alternatives contain less calories than low fat milk. Additionally, calcium and potassium content in these dairy alternatives is more than that of milk, which is the main reason for consumption of dairy products. These research findings have been incorporated into marketing strategies by dairy alternatives manufacturers to boost sales.
Increasing Demand among Vegans, Flexitarians, and Reducetarians to Shape Market
An increased adoption of vegan, reducetarian, or flexitarian dietary lifestyle is emerging as a global trend. These drastic changes in lifestyle are expected to create lucrative opportunities for the growth of the dairy alternatives market. Animal cruelty is strongly criticized in all parts of the globe. A report by the FAO and Global Dairy Platform Inc. showed that the Greenhouse Gas Emissions from the dairy sector has increased by 18% between 2005 and 2015 as a result of the substantial growth of milk production by 30 percent.
This has raised questions about the sustainability of animal farming. These factors have led to a rise in demand for dairy alternatives in developed as well as developing regions. Increase in the number of emerging players in the dairy alternatives market has facilitated diversification of vegan food offerings. There are dairy alternatives that exactly taste like dairy products and at the same time provide more nutrition.
- Perfect Day, an agri-tech start-up, manufactures milk from lab grown dairy cultures, which tastes exactly like milk.
Millennials to Dominate Dairy Alternatives Consumption
A shift in culinary preferences is witnessed and consumers are eager to try out new products, which taste good and are also high in nutritional value. Millennials are mainly responsible for this trend as they are willing to experiment with innovative dishes and are willing to pay premium prices. Dairy alternatives manufacturers are targeting millennials as a part of their marketing strategy. Innovation in taste profiles and textures facilitates higher sales of dairy alternatives.
- Rising number of vegans has resulted in food joints such as Burger King offering new options for the vegan consumers in collaboration with Impossible Foods, called the Impossible Burger, which is made from plant-based products.
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DAIRY ALTERNATIVES MARKET STRUCTURE ANALYSIS
- The global dairy alternatives market is highly consolidated, with a few global players dominating the market and operating across the globe.
- Key players in the dairy alternatives market are concentrating highly on innovation and enhancing nutritional value of their offerings.
- As dairy alternatives are mainly a retail product, branding plays a major role in sales and market penetration. Ensuring that dairy alternatives are supplied to appropriate channels is important to make products easily accessible to consumers.
- Major players in the dairy alternatives market are Tate & Lyle, SunOpta Inc., CP Kelco Inc., Archer Daniels Midland Company, The Coca-Cola Company, PepsiCo Inc., Döhler GmbH, WhiteWave Foods, The Hain Celestial Group Inc., and Pacific Foods of Oregon, Inc.
Dairy Alternatives Market - Report Scope
Historical Data Available for
US$ Mn for Value and Metric Tons for Volume
Key Regions Covered
North America, Latin America, Europe, China, Asia Pacific Excluding China, Oceania, and Middle East & Africa (MEA)
Key Countries Covered
U.S, Canada, Germany, U.K, France, Italy, Spain, Mexico, Brazil, Argentina, BENELUX, NORDIC, Russia, Poland, Rest of Western Europe, Japan, India, ASEAN, Rest of Asia Pacific Excluding China, Australia, New Zealand, GCC, Turkey, Rest of MEA, & South Africa
Key Segments Covered
Source, Product Type, Nature, and Sales Channel
Key Companies Profiled
Market Overview, Key Market Trends, Key Success Factors, Demand Analysis, Market Background, COVID-19 Analysis, Segmental Analysis, Regional Profiling, Market Structure & Competition Analysis
Customization & Pricing
Dairy Alternatives Market Segmentation
The global dairy alternatives market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.
- Regular/ Unflavoured
- Soy Milk
- Almond Milk
- Coconut Milk
- Oat Milk
- Others (Hemp, Flax, etc.)
- Soy Milk
- Almond Milk
- Coconut Milk
- Oat Milk
- Others (Hemp, Flax, etc.)
- Direct Sales/ B2B
- Indirect Sales/ B2C
- Hypermarkets/ Supermarkets
- Convenience Stores
- Mass Grocery Retailers
- Specialty Stores
- Online Retail
- North America
- Latin America
- Asia Pacific Ex. China
- Middle East and Africa