IndustryARC updated the market research study on “Plant Based Dairy Products Market ”- Forecast (2024 - 2030)

Plant Based Dairy Products Market size is estimated to reach $28 billion by 2030, growing at a CAGR of 8.7% during the forecast period 2023-2030. Market is driven by shifting consumer preferences towards healthier and more sustainable dietary choices. Plant-based dairy products are non-dairy alternatives made from various plant sources, such as soy, almond, coconut, oats, and rice, that mimic the taste and texture of traditional dairy products such as milk, cheese, yogurt, and butter. Growing awareness of animal welfare issues and ethical concerns about the treatment of animals in the dairy industry have prompted consumers to switch to plant-based options.

Additionally, the increasing availability of plant-based dairy products in mainstream retail outlets and the expansion of product lines by both established and emerging companies have made these products more accessible to consumers. This has further fuelled market growth. According to Ecommerce Tips, an organization working for B2B and B2C business, retail ecommerce sales $5.717 trillion and is projected to reach $8.1 trillion by 2026. These factors positively influence the Plant Based Dairy Products industry outlook during the forecast period.

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COVID-19 / Ukraine Crisis - Impact Analysis:

• The pandemic disrupted global supply chains, affecting the availability of ingredients and packaging materials. This has temporarily hampered the production and distribution of plant-based dairy products. The pandemic prompted many consumers to prioritize health and wellness. Plant-based dairy products, often perceived as healthier alternatives, saw increased demand as consumers sought products with perceived health benefits.
• Trade tensions and restrictions affected the export and import of plant-based dairy products, potentially limiting market access in affected regions. In regions affected by geopolitical conflicts, consumer behaviour shifted due to economic uncertainties. This impact consumer spending on premium or specialty products like plant-based dairy.

Key Takeaways:

• Fastest Growth of Asia-Pacific Region

Geographically, in the global Plant Based Dairy Products market share, Asia-Pacific is analyzed to grow with the highest CAGR of 10.4% during the forecast period 2023-2030.

Firstly, a rising awareness of health and sustainability has prompted consumers to shift towards plant-based alternatives. Additionally, a growing middle-class population in countries like China and India has increased disposable income and dietary consciousness. Furthermore, government initiatives supporting the development of plant-based industries have fuelled market expansion.

Finally, a surge in innovative product offerings and improved taste and texture have boosted consumer acceptance. As a result, the Asia-Pacific plant-based dairy market is experiencing rapid growth, presenting significant opportunities for businesses in the sector. In March 2021, Marusan AI, a leading soymilk manufacturer in Japan launched Japan’s first locally produced oat milk. The new launch was added to the company’s existing line of plant-based milk product range

• Plant Based Milk to Register the Fastest Growth

In the Plant Based Dairy Products Market analysis, the plant-based milk segment is estimated to grow with the highest CAGR of 14% during the forecast period. This robust growth can be attributed to several key factors. Firstly, heightened consumer awareness regarding health and environmental concerns has prompted a shift towards dairy milk alternatives. Secondly, ongoing product innovation has led to a wider array of plant-based milk options, catering to various dietary preferences and needs. Additionally, growing lactose intolerance and dairy allergies have driven consumers to opt for plant-based milk. Lastly, endorsements by health experts and celebrities have further boosted consumer confidence in these products, fuelling their exponential growth in the market. In December 2022, MALK Organics, a provider of premium plant-based milk raised around US$ 9 million in a series B round that was led by Benvolio group amassing its total financing to US$ 17 million till date. The company expected to use this capital to expand its product range of oat milk, almost milk. etc.

• Organic Segment is Leading the Market

According to the Plant Based Dairy Products Market forecast, the organic segment held the largest market valuation with the market share of 65% in 2022. This dominance can be attributed to the increasing consumer preference for healthier, environmentally conscious choices. Organic plant-based dairy products are perceived as more natural and freer from synthetic chemicals, aligning with the growing trend towards clean and sustainable eating. Additionally, consumers are increasingly willing to pay a premium for organic products, boosting the market size for this segment. The demand for transparency in sourcing and production practices further enhances the appeal of organic options, solidifying its leadership position in the plant-based dairy market. According to OTA (Organic Trade Association), organic product sales in the US increased by 12.4% in 2020, breaking the $60 billion mark. It was expected that the impact of the coronavirus outbreak would increase sales as health has become an issue many people have taken seriously and will continue to do so.

• Rapid adoption of veganism and supportive initiative to promote plant-based product consumption

The rapid adoption of veganism, coupled with proactive initiatives to promote plant-based product consumption, has emerged as a significant catalyst for the growth of the plant-based dairy market. Consumers are increasingly embracing vegan alternatives due to health and environmental concerns, driving demand for plant-based milk, cheese, and yogurt. This shift is further bolstered by governmental and corporate initiatives promoting sustainability and plant-based diets. Consequently, the plant-based dairy market is experiencing substantial expansion, with robust sales figures and heightened investment, making it a lucrative sector for businesses seeking growth opportunities in the evolving food industry landscape. According to Vegan Society global vegan population is a hefty task, however, there are approximately 79 million vegans worldwide.

Increasing Awareness of Animal Welfare to Boost Plant Based

Raising awareness about animal welfare has emerged as a pivotal catalyst driving growth within the plant-based dairy market. This paradigm shift in consumer sentiment aligns with the ethical and environmental concerns surrounding traditional dairy production. Consumers are becoming increasingly conscientious about the treatment of animals within the dairy industry, spurred by documentaries and media coverage exposing issues such as factory farming, hormone use, and animal cruelty. This newfound awareness has led to a surge in demand for plant-based dairy alternatives, which are viewed as a more humane and sustainable choice. Businesses in the plant-based dairy sector are capitalizing on this opportunity by promoting the ethical advantages of their products through targeted marketing campaigns and labelling practices. According to animal abuse statistics Every year, more than 6.5 million animals enter animal shelters according to animal abuse statistics in the United States.

• High Prices of Plant Based Dairy Products Hamper the Market Growth

The exorbitant prices of plant-based dairy products pose a significant hurdle in the flourishing plant-based dairy market. Consumers seeking sustainable and cruelty-free alternatives often encounter sticker shock, deterring widespread adoption. In 2020, the average cost of plant-based milk was approximately $3.50 per half-gallon, while conventional dairy milk averaged just $1.50 for the same quantity. Such price disparities can be attributed to the intricate production processes, limited economies of scale, and premium ingredients used in plant-based alternatives. To drive market growth, industry players must focus on cost-efficiency strategies, including supply chain optimization and technology-driven innovations, to make these products more accessible to a broader consumer base.

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Key Market Players:

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Plant Based Dairy Products Market. The top 10 companies in this industry are listed below:

1. Arla Foods
2. Daiya Foods Inc.
3. Danone S.A
4. General Mills
5. Saputo
6. Chobani
7. Earth’s Own Food Company Inc.
8. Unilever
9. Bel Group
10. Kraft Heinz