Dairy alternatives market set for robust growth
Predominantly driven by considerably high prevalence of lactose intolerance, dairy alternatives continue to witness healthy sales at a global level, according to a report by Future Market Insights. Once a niche sector in food industry, dairy alternatives currently represent a US$ 16bn market and will possibly witness a strong CAGR during the period of projection, 2019 – 2029.
There is a wide variety of dairy alternatives manufactured from different sources such as soy, oats, almond, coconut, hemp, and flax. Dairy alternatives are offered in flavoured and unflavoured variants. This diverse range of options is expected to boost expansion of the market.
The consumption of unflavoured or regular dairy alternatives is higher than that of the flavoured variety. However, in the forecast period, the demand for flavoured dairy alternatives is anticipated to increase.
Organic dairy alternatives are gaining traction, especially in developed countries. Organic food consumption is the highest in the US, followed by European Union which accounted for retail sales of 45.2 billion and 34.3 billion respectively, in the year 2017.
Shelf storage of dairy products poses as a big challenge for stakeholders due to fear of spoilage. Dairy alternatives manufacturers launched shelf-stable products with a higher shelf life, which made storage of dairy alternatives economical and easier. This is anticipated to boost sales.
Among retail outlets, specialty stores account for the highest share in sales of dairy alternatives.
Despite a great deal of opposition from dairy manufacturers, the dairy alternatives market is expected to double over the next ten years. Nutrition, taste, easy availability of dairy alternatives, and consumer-centric approach are expected to contribute to this significant growth.
Millennials to Create Opportunity
The main consumers of dairy alternatives are younger consumers aged 22-37. Millennials show more concern towards animal welfare than any other generation as per consumer survey in 2018 by Comax Flavours, a flavour technology company for food and beverages. Additionally, as per the survey, health benefits are the main reason for which millennials consume dairy alternatives.
To retain and capture interest of millennials in an increasingly intense landscape, manufacturers are increasing their efforts in research and development. Almost all the companies in the dairy alternatives market which are operating at a global level, are growing at exponential rates in terms of sales. Innovative ingredient and flavour combinations are responsible for the projected high growth rate of the dairy alternatives market.
The ongoing better-for-you and clean label trend is boosting market growth. Though the growth of dairy alternatives market is not expected to decline for the next 10-15 years, constant efforts in innovation and development of effective marketing strategies are a prerequisite for growth in future.
