Dairy Alternatives Market Analysis By Future Demand, Top Players, Size, Share, Opportunities, Revenue and Growth Rate Through 2027
The global dairy alternatives market size is expected to experience considerable growth by reaching USD 53.97 billion by 2028 while exhibiting a CAGR of 13.30% between 2021 and 2028. This information is published by Fortune Business Insights in its report, titled, "Dairy Alternatives Market, 2021-2028." The report further mentions that the market stood at USD 19.66 billion in 2020. The growth is owing to the emerging veganism trend and the rising inclination of consumers towards a plant-based diet. According to an environmental view, the dairy and meat sectors are the major contributors to the emission of greenhouse gases. The awareness regarding a sustainable environment has resulted in a major switch among people regarding their diet. For example, according to a survey conducted by Food Standards Agency (FSA), there are about 720,000 vegans in the U.K, which is around 1.2% of the country's total population. Whereas in India, only 1 % of Indians strictly follow veganism, therefore the total population of vegans in India is around 5 million.
British Population Adopted Veganism during COVID-19 Pandemic
The rising trend of switching to dairy alternatives was further accelerated during the outbreak of COVID-19. People were forced to stay indoors as the government imposed stringent restrictions regarding social distancing and even announced lockdowns. This resulted in people making healthy living and food choices. Many people switched to vegan and vegetarian diets during the COVID-19 outbreak. For instance, according to an article published by IFT in June 2020, 25% of the British population aged between 21-30 years stated that the COVID-19 pandemic has turned vegan diets to be more tempting. Around 37% of the British population responded that the COVID-19 outbreak has encouraged them to add more nutrients and supplements to their diet that support the immune system. Therefore, this is anticipated to boost this market even during the pandemic.
Based on the source, the market is divided into soy, almond, coconut, rice, and oats. By distribution channel, the market is categorized into supermarkets or hypermarkets, convenience stores and online retail, among others. In terms of region, it is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa.
On the basis of product type, the market is further classified into non-dairy milk, butter, cheeses, yogurts, and ice-creams. Among these, the non-dairy milk segment dominated the market by earning the largest market share in 2020.
The report presents a holistic study of the market along with current trends and future anticipations to establish proximate investment gains. An in-depth analysis of any upcoming opportunities, threats, competitions, or driving factors is also mentioned in the report. Step by step, a thorough regional analysis is offered. The COVID-19 impacts have been added to help investors and business owners understand the threats better. The top players in the market are identified, and their strategies to bolster the market growth are shared in the report.
Drivers and Restraints
Gained Consciousness Regarding Environmental Issues to Drive Market Growth
The lactose intolerant population is growing globally, and therefore the market is propelling on this basis. Besides the intolerant part, the perception among people that lactose-free items are better for human health is driving the demand for dairy alternatives. For example, according to the National Institutes of Health, around 68% of the total world population has inherited lactose mal-absorption. Furthermore, 70%-100% of East Asian adults are lactose intolerant, and most of this condition is found among adults overall. Additionally, the production of certain dairy products has substantial environmental bearings, which lead to harmful results such as soil impurity, air pollution, water infiltration, and extensive damage to biodiversity. This is anticipated to boost the dairy alternatives market growth in the foreseeable future.
Asia Pacific to Ace the Market Backed by Rising Lactose-Intolerant Cases
The dairy alternatives market share in the Asia Pacific region was held at USD 10.13 billion in 2020. The market is primarily driven by the maximum reported cases regarding lactose intolerance. Moreover, the rising awareness among people for making the right food choices and healthy lifestyle choices has resulted in a major shift from dairy to non-dairy milk-based items. As several nations in the Asia Pacific region are yet developing, these dairy alternatives are cost-effective for daily utilization in several households.
North America holds the second largest market share globally. The people in this region are well informed about the negative traits of using dairy products and are aware of environmental depletion. Moreover, people are sensitive to animal cruelty and therefore are shifting towards veganism rapidly. However, only 1 million North American people, i.e., 0.5% of the total population, follow a purely vegan-based lifestyle.
New Product Launches by Leading Players to Spur the Market Growth
Key players are adopting numerous strategies to ensconce their position in the market. One such strategy is to launch products featuring the latest trends around the market. For example, in September 2020, Nestlé launched Nesquik, a new dairy alternative and plant-based drink in Europe. The drink obtains protein from peas and oats and is an excellent option for diabetic people as it contains lower sugar levels. The product is estimated to be launched initially in Spain, Hungary, and Portugal in the European region.
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