The market for dairy alternatives is predicted to reach $50.87B and have a CAGR of 10.5% by 2028, says a recent report by Reports and Data.
The US National Institutes of Health (NIH) has claimed that approximately 65% of people worldwide cannot digest lactose properly, which has increased the audience for the market.
The report also revealed an increase in demand for flavoured plant-based milk products, which are becoming more popular with younger generations.
Almond milk in particular is seeing an increase in offering sweetened and unsweetened flavours, which is predicted to increase the product’s revenue.
An increase in the availability of flavoured soy milk is also on the rise, with chocolate and vanilla flavoured options tending to be the most popular with plant-based consumers.
These plant-based dairy alternatives tend to be healthier options than regular dairy, being lactose-free, cholesterol-free and low in calories. Their nutritional benefits include high levels of antioxidants and fatty acids which can reduce the risk of diseases such as diabetes, heart disease and cancer.
The dairy alternative market is expected to grow significantly in North America, due to there being higher demands for vegan and organic food and drinks as the advantages of a plant-based diet are being recognised by more people.
Major food brands have also been increasing their stock of plant-based dairy goods, according to the report. Danone SA acquired Follow Your Heart at the start of 2021, which stocks a range of dairy-free products including parmesan, shredded cheddar honey mustard and smoked gouda. Danone has made a share purchase agreement with Earth Island who create the Follow Your Heart brand, to help Danone increase the production of top standard dairy-free products in North America.
The US has the biggest demand for plant-based cheese according to recent research from Fact.MR. This sector specifically is expected to have a value of around $3.9B by 2031 the report notes.
The report analysed range of dairy alternatives including beverages such as soy milk, almond milk, coconut milk, rice milk, oat milk, hemp milk and foods, including yoghurt cheese creamers, ice cream and others. The report examined the sales of these products around the world in North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.
According to The Lancet, 68% of the global population are lactose intolerant (ranging from an average of 28% in Europe to 70% in the Middle East), making it easy to see why dairy-free products have become so attractive.