Veganism boosting demand for non-dairy toppings
The trend towards veganism is driving demand for non-dairy toppings and fillings, according to a report from analysts FACT.MR.
Since 2015, there has been a 600% rise in the vegan population in the US while, more than 42% of people in UK have adopted vegan diets. The report states that in comparison with the historical market growth for non-dairy toppings, demand is expected to increase exponentially in the short term forecast to create an opportunity of US$ 1.3bn between 2019 and 2029.
Key takeaways of the global non-dairy toppings market
- There has been a surge in the demand for liquid non-dairy toppings, which accounts for more than 55% market share and is expected to indicate rising growth in non-dairy toppings market during the forecast period.
- Europe and Asia Pacific together hold nearly 3/5th market share of non-dairy toppings. Asia Pacific will grow at a higher CAGR than the global average.
- While Europe (including western and eastern) has accounted for nearly 35% of the global non-dairy toppings demand in 2018, the demand from Asia-Pacific excluding Japan (APEJ) appears to be on a roller-coaster ride, with nearly double-digit growth.
- United States spending on non-dairy toppings is 1.2X as compared to Europe’s per capita spending on non-dairy toppings, which is around US$ 0.50. Moreover, per capita spending by these regions is projected to grow by 25% in next three years.
- Rich Products Corporation entered the Turkish market with its new extension called Rich’s Turkey. Besides its own consumers, Turkey is a gateway to the adjacent countries such as Iraq, Iran, Syria, Azerbaijan and Bulgaria which are likely to add value to global non-dairy toppings market.
“Non-dairy toppings market has been shifting towards premiumisation, due to exponential increase in consumer demand for almond milk. Asia Pacific will present the highest growth potential for non-dairy toppings market, owing to a large base of lactose intolerant consumers”, says a report analyst.
The report adds that tier 1 players will hold nearly a third of overall non-dairy toppings market in terms of value. Market leaders including Rich Products Corporation and Conagra together hold more than one fourth of the non-dairy toppings market share. Tier 2 and Tier 3 players account for less than 10% shares individually.
The leading manufacturers in non-dairy toppings market are adopting strategies such as acquisition of domestic players and expansion of the company distribution network into emerging countries in order to escalate its sales.
For instance, in 2018, Conagra Brands acquired Pinnacle Foods for US$ 10.9bn. This move is largely designed to tap into the growing opportunities in the frozen foods business of company which includes supply of frozen non-dairy toppings