Plant-based Milk Market
The demand for plant-based milk is expected to reach a value of US$ 13.24 Bn in 2021. As per Future Market Insights (FMI), the overall market value is expected to reach US$ 30.79 Bn by 2031. Rising demand for alternative sources of milk and protein will push sales in the market at 8.8% CAGR through 2031.
Key Points Covered in Plant-based Milk Market in Food and Beverage Sector Study
- Market estimates and forecast 2015-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Demand for Plant-based Milk and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Plant-based Milk Market Outlook in Comparison to 2021-2031 Growth Forecast
There has been a rising interest among consumers to reduce their dietary intake of animal-based food products amidst soaring focus on sustainability, health, and ethical concerns. As a result, the food industry is manufacturing novel plant-based goods that mimic many of the physicochemical and sensory properties of animal-derived meals such as milk, eggs, and meat.
When compared to traditional dairy products, animal-free dairy proteins provide a number of advantages. They are free of antibiotics, hormones, and lactose, making them acceptable for anyone with the aforementioned sensitivities or intolerances. They are also comparable to dairy protein in terms of nutritional value, taste, texture, and usefulness.
Plant-based milk alternatives have grown in popularity in recent years, and several commercial versions are now available, with oat, almond, coconut, flaxseed, rice, and soy milks among the most popular. Thus the market has grown with a CAGR of 6.0% for 2016-2020 and is expected to grow at a CAGR of 8.8% for 2021-2031.
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Is Growing Veganism Primary Factor Fuelling the Demand for Plant-based Milk?
With the growing trend among athletes and young consumers to adopt a vegan diet that includes only plant-based products, completely excluding dairy foods or drinks, demand for plant-based products and dairy alternatives is increasing.
Consumers are also becoming more familiar with animal welfare, which is another factor steering them away from animal-based products.
Such changing trends in consumer food consumption foster demand for plant-based foods and alternatives to dairy products. This, in effect, fuels the growth of the market for plant-based milk, as it provides a very good choice for people following strict dairy, gluten-free, or vegan diets. Therefore, these consumers' preference for plant-based milk is driving the market growth.
Is Plant-based Milk Useful as a Dairy Alternative for Individuals with Health Disorders?
Individuals who are undergoing radioiodine cancer treatment, have eczema, or have other diseases that react adversely to dairy frequently use plant-based milk. According to a recent study, close to 40% of the global suffers from Lactose Intolerance, which is a big number. Further, plant-based milk is a recommended dairy substitute for people with irritable bowel syndrome and inflammatory bowel disease.
Individuals with gluten and nut allergies may find plant-based milk to be a viable option because it is naturally free of nuts and gluten. Oat milk contains calcium, proteins, iron, vitamins A, D, potassium, and phosphorus, among other nutrients. Several plant-based milk manufacturers supplement their products with additional nutrients for consumers with a deficiency.
It is also a good source of beta-glucans, which are beneficial to heart health. As a result, plant-based milk is a healthy option for consumers suffering from heart ailments.
How is ‘Power to the Plant’ Trend Impacting the Market Growth?
'Power to the plant' is one of the fastest growing phenomena, as more and more producers and buyers are now investing in plant based products, including dairy, vegetables, fruits, seeds, spices, and grains.
This has resulted from the effect of the vegan movement that is gaining popularity around the world especially among people with lactose-intolerance and from a change in consumer preference for dairy products.
To order to address this trend among consumers, companies shift away from conventional dairy milk to dairy alternatives and attract more customers by supplying them with what they want to their products. Plant-based milk, which is one of these more environmentally friendly beverages, would also capitalize on these various food patterns on the market.
Rising Demand for Additive-free, Chemical free & Non-GMO Milk Creating Opportunities for Growth
The detrimental influence of food additives, chemicals, antibiotics, and other substances on health is becoming more widely recognized among millennials. Millennials are anticipated to be the most vocal consumers of organic products, as they buy more natural and organic items than other generations.
According to guidelines implemented for marketing organic products, organizations need to label their products suitably. For example, organic food items are to be guaranteed with naming that whether they are 100% affirmed or incorporates only organic inclusions. Accessibility of this data fulfilled the interest for customers looking for items with different wellbeing and dietary advantages.
What is the Impact of COVID-19 on Plant-based Milk Market?
COVID-19 continues to be a significant challenge for all businesses around the world. Plant-based foods are now widely accepted by people from all walks of life. It offers a range of flavors in addition to being a good source of protein. As a result, most food firms have changed their marketing and production strategies to promote it more than other traditional healthy foods.
There have been erroneous claims made concerning plant-based foods, such as that consumers will have to forgo taste or texture, that cooking will be more complicated, or that it will not provide adequate nutrition. Because of the competition between corporations to offer a variety of items with various tastes, more possibilities are coming to market.
As a result of the COVID-19 pandemic, it encouraged most consumers to make shifting from animal-based food to plant-based food due to various health and environmental concerns.
How Is Rising Flexitarian Diet in the U.S. Impacting the Market Growth?
According to the latest study, the U.S. is estimated to account for more than 80% of the North America market in 2021.
Consumers in the U.S. are progressively leaning towards plant-based milk over traditional milk. The key driving factors of the growing interest of plant-based beverages are the innate insufficiencies of customary dairy items, taking lactose intolerance and protein allergies as specific illustrations, and pervasiveness of Vegan food.
The rise of the flexitarian lifestyle has opened up a lot of possibilities for novel plant-based milk product development. Changing consumer lifestyles have a significant impact on the functional food and beverage business, but the ageing of the population, as well as increased chronic-degenerative diseases and rising healthcare spending, are also important drivers.
What are the Factors Fuelling the Demand for Plant-based Milk in China?
According to the latest report, China is expected to hold dominance in East Asia. Several factors indicate that China's plant-based milk market will continue to expand over the forecast period. China is expected to over 60% of sales in Asia Pacific.
Plant-based milk has a high level of acceptance in China due to a long-standing food tradition of ingesting soya products. The rising prevalence of lactose intolerance in Asia also will support overall expansion of the market.
Expanding population and popularity of western diet also will create conducive environment for expansion of the market in China.
What is Driving the Demand for Plant-based Milk in the U.K.?
According to FMI’s analysis, the U.K. market is forecast to grow at a CAGR of 8.3%. The rising popularity of vegan, vegetarian, and flexitarian diets is driving sales in the U.K. Animal compassion is typically cited as a main motivation by vegan and vegetarian consumers. Consumer studies, on the other hand, suggest that individuals who are not totally vegetarian/vegan but follow a more "flexitarian" diet have major motivations to limit their environmental effect and support sustainability.
These trends are expected to create attractive prospects for growth in the U.K.
What are the Implications of COVID-19 on Thailand Plant-based Milk Market?
According to FMI’s analysis, the Thailand market is forecast to grow at a CAGR of 9.3%. In 2020, the COVID-19 pandemic impacted negatively on the worldwide economy. Thailand's economy was not spared, with the country's GDP seeing its worst full-year decline since independence.
The economy had to deal with demand- and supply-side shocks during the year, including a drop in external demand for products and services produced in Thailand as a result of the global economic recession and travel restrictions, as well as supply chain disruptions. COVID-19's economic impact was seen across sectors via various transmission mechanisms.
However progress in the health conscious customers and lactose sensitivity may perhaps drive oat milk industry extensively.
How is Increasing Demand for Premium Products Driving Organic Plant-based Milk?
According to FMI analysis, organic plant-based milk segment is forecast to grow at a CAGR of 10.1%. Many premium plant-based milk manufacturers are adoption various marketing strategies to entice customers to purchase the product.
Premium product sales are now commonplace all over the world, and they are rapidly distinguishing themselves from private label.
Consumers who are willing to pay extra for high-quality ingredients and better plant-based milk are the target market for premium 'organic' variants.
Which is the Preferred Flavor Type?
According to FMI’s analysis, flavored plant-based milk segment is forecast to grow at a CAGR of 8.6%. Plant-based milk manufacturers are seeking to sell more exclusive flavors since the more varieties a manufacturer provides, the more customers it draws.
There is increasing focus on launching diverse flavors to cater to the diverse requirements of consumers.
Who are the Leading End Users of Plant-based Milk?
The demand for plant-based milk will remain considerably high in the food and beverage industry.
Plant-based milk is used as a base for smoothies, frothy soups, and baked products, in addition to coffee. It can be substituted for dairy milk in any cuisine or beverage. As a result, the demand for plant-based milk is increasing across various sectors within the food industry, from coffee shops to bakeries.
Which is the Preferred Form of plant-based milk?
There are two forms for plant-based milk. Among these, the liquid form of plant-based milk holds more than 85% of the market share and is expected to grow at a market value CAGR of 7.6% by 2031.
How is Growing E-Commerce Making Plant-based Milk More Accessible to Consumer?
According to FMI’s analysis, online retail is forecast to grow at a CAGR of 10.8%. Consumers' busy and chaotic lifestyles, particularly in industrialized countries, leave them with little time to go to supermarkets or stores to buy the products they need on a daily basis.
However, online shopping gives consumers the convenience of being able to buy anything from an online shopping platform without having to leave their homes. Considering this, sales via ecommerce are expected to increase at an impressive rate in the coming years.
Product launches have emerged as chief strategy among market players. With soaring competition, focus on differentiating products is expected to rise, which will encourage product launches in the plant-based milk market.
Scope of Report
Historical Data Available for
USD Million for Value
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
Nature, Form, Product Type, Flavor Type, End-Use, Sales Channel, and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization and Pricing
Available upon Request
Key Questions Answered in the Report
What is the plant based milk market size?
The plant based milk market is forecast to reach a valuation of US$ 13.24 Bn by 2021
What is the plant based milk market growth outlook?
The plant based milk market is expected to register growth at a CAGR of 8.8% between 2021 and 2031.
What are the key factors driving plant based milk market?
The demand for plant based milk will rise in response to the increasing focus on health and wellness among consumers and rising demand for milk derived from plant-based sources. Popularity of veganism also will have positive impact on growth.
What are the key trends shaping the plant based milk market?
Focus on product launches, including a variety of flavors in plant based milk, will remain a key trend enabling growth in the market.
Which is the largest market for plant based milk in North America?
The U.S. has emerged as the largest market for plant based milk in North America. It will account for more than 80% of sales in North America in 2021.
What is the demand outlook for plant based milk market in North America?
According to FMI, the plant based milk market will rise at 9% CAGR in North America.
At what rate will the plant based milk market expand in Europe?
The Europe plant based milk market is expected to expand at 6.1% CAGR between 2021 and 2031.
Who are the top players in the plant based milk market and what is their cumulative market share?
Groupe Danone, Alpina Foods, Blue Diamond Growers, Inc., Döhler GmbH, Earth’s Own Food Company Inc, Elden Foods Inc, Freedom Foods Group Ltd , Goya Foods, and Hain Celestial Group, Inc are among the top market players. These companies are expected to account for 50% to 60% of the overall market share in 2021.
.At what rate will the demand for plant based milk rise in 2021?
The demand for plant based milk will increase at 8% year on year growth rate in 2021.
What is the global market share of Japan and South Korea in global plant based milk market?
Japan will account for 2.2% of the global market, while South Korea will contribute towards 2.8% of global sales in 2021.
By Nature, Plant-based Milk Market is Segmented as:
By Product Type:
- Soy Milk
- Almond Milk
- Coconut milk
- Cashew Milk
- Hemp Seed Milk
- Rice Milk
- Oat Milk
- Peanut Milk
- Pea Milk
- Hazelnut Milk
- Macadamia Milk
- Flax Milk
- Other Product Types (Spelt Milk, Banana, etc.)
By Flavor Type:
- other Flavors
- Infant Formula
- Dairy Products
- Ice Cream
- Frozen Dessert
- Bakery & Confectionary
- Milk & Milk-based Beverages
- Retail Sales
By Sales Channel:
- Direct Sales
- Indirect Sales
- Modern Trade
- Convenience Store
- Departmental Store
- Traditional Store
- Specialty Store
- Online Retailers
- Other Sales Channel
- North America
- Latin America
- South Asia
- East Asia
- Middle East & Africa