Milk alternatives continue to grow

According to a recent market report on Reports and Data, the global dairy alternatives market could reach a value of USD 50.87 billion by 2028, registering a compound annual growth rate (CAGR) of up to 10.5% during the analysed forecast period.

In particular, the increasing number of cases of lactose intolerance in the rapidly growing global population will strongly drive the revenue growth of the market during the forecast period. According to the National Institutes of Health (NIH), in the U.S. alone, approximately 65% of the population has difficulty digesting lactose, which represents a large target population.

Consumers with lactose intolerance often consume low-fat, cultured and lactase-treated milk and dairy products, as well as other varied and balanced products. Plant-based alternative beverages and dairy products also offer them benefits because they can be consumed despite lactose intolerance or cow's milk allergies and are often cholesterol-free and low in calories.

Dairy alternatives offer a good nutritional profile with abundant antioxidants and fatty acids, which reduces the risk of cardiovascular disease, cancer and diabetes. Consumers, predominantly the younger population, tend to buy chocolate and vanilla flavoured milk alternatives. Manufacturers are also focusing on introducing milk alternative products in different flavours to meet growing consumer demand for sweetened and unsweetened flavoured alternatives.

• The soy milk segment is expected to hold the largest market share in the global dairy alternatives market during the forecast period. Two major factors driving the demand for soy milk are changing consumer preference for vegan diets and increasing cases of lactose intolerance. The increasing prevalence of milk allergies is also driving demand for products made from milk alternatives such as soy milk and almond milk. Soy milk is a rich source of vitamins, proteins and potassium and has a lower calorie content than cow's milk. Due to its high nutrient content, it is considered an ideal substitute for dairy products. Another factor driving the growth of this segment is the increasing consumption of tofu, which is made from condensed soy milk in Asia Pacific and is an alternative to cottage cheese and meat.

• Sales in the almond milk segment over the forecast period will also show a rapid growth rate. Increasing R&D activities to obtain milk alternatives from almonds is expected to increase the revenue growth of this segment during the forecast period. Almond milk is lower in calories than cow's milk and also helps in weight management. Demand for almond milk in various sweetened and unsweetened flavours is growing, especially among the younger population.
• The flavoured formulations segment during the forecast period will also see steady sales growth. The introduction of new flavoured milk and dairy alternatives and their growing popularity among the younger population is expected to drive demand significantly. For example, soy milk in vanilla and chocolate flavours is particularly popular with vegan consumers.
• The beverage segment is expected to expand significantly in terms of sales development over the forecast period. Dairy drinks made from alternative protein sources are considered a healthy option due to their content of important minerals and vitamins. They are also low in or free of cholesterol and fat, and have no lactose concentration, which strongly boosts demand.
• The online shopping segment is expected to have a stable revenue share in the global dairy alternatives market. The expansion of the e-commerce sector in developing countries is a major factor expected to drive the growth of this segment due to factors such as cost efficiency and quick accessibility.
• The market in North America is expected to witness significant revenue growth during the forecast period. Increasing adoption of vegan diet, high demand for organic food and beverages, and growing awareness about the benefits of plant-based foods are some of the major factors driving the demand for dairy alternatives in this region.
• Some key companies featured in the market report are The Hain Celestial Group, Blue Diamond Growers, SunOpta, Sanitarium Health and Wellbeing Company, Danone S.A., Freedom Nutritional Products, Earth's Own Food Company, Triballat Noyal SAS, Valsoia SpA and Oatly.

For more information and insight into the market report, click here .

Copyrights: Vegconomist