Plant-Based Dairy: A Milking Good Trend - An In-Depth Look

The rise of plant-based dairy is a revolution brewing in the beverage and food aisle. This trend goes beyond a simple splash of oat milk in your coffee; it's a movement driven by health, environmental consciousness, and a growing awareness of dietary needs. Let's delve deeper into this phenomenon, exploring the factors propelling it, the key players involved, and the future for this exciting market.

Traditional Dairy Meets its Plant-Based Counterpart

The tides are turning in the dairy industry. Established giants like Lactalis Canada, the world's largest Diary Producer are taking notice. They're not just dipping their toes into the plant-based pool; they're diving headfirst! By repurposing a closed milk processing facility to produce oat, almond, and hazelnut milk under their new brand "Enjoy!", Lactalis Canada acknowledges the consumer shift and positions itself as a competitor in the booming plant-based market [1]. This move highlights a crucial point: plant-based dairy is not just a niche trend, it's a force to be reckoned with.

Why Go Plant-Based? Unveiling the Motivations

The reasons behind the surge in plant-based dairy are multifaceted:

• Health and Sustainability: Plant-based milk boasts a significantly lower carbon footprint compared to traditional dairy milk. This eco-friendly aspect resonates with environmentally conscious consumers [1]. Additionally, plant-based alternatives avoid ethical concerns associated with conventional dairy farming practices.
• Lactose Intolerance: A surprisingly large portion of the global population suffers from lactose intolerance, hindering their ability to enjoy traditional dairy products. Plant-based milk offers a delicious and nutritious solution, allowing them to indulge in creamy beverages and dairy-like experiences [2].
• Shifting Consumer Preferences: The COVID-19 pandemic has led many to prioritize health and wellness. This has translated into a rise in vegetarian, vegan, and flexitarian diets. Younger generations, with information readily available at their fingertips, are particularly drawn to plant-based products due to their health benefits and lower environmental impact [2].

India's Plant-Based Dairy Market: A Booming Niche

India presents a unique case study in the plant-based dairy market. Here, the projected CAGR for plant-based dairy alternatives is a staggering 6-8% between 2023 and 2027 [2]. This growth can be attributed to several factors specific to the Indian market:

• High Prevalence of Lactose Intolerance: Nearly 60% of the Indian population struggles with lactose intolerance, making plant-based milk a crucial dietary alternative to meet their nutritional needs [2].
• Health and Environmental Concerns: Growing health consciousness in India, coupled with concerns about milk adulteration, antibiotic use in dairy farms, and the environmental impact of dairy production, are pushing consumers towards plant-based options [2].

Startups:

India's plant-based dairy market is a land of opportunity, and innovative startups are leading the charge. Companies like Oatey, known for their creamy oat and millet milk, and Dancing Cow, offering a range of plant-based Barista grade milk, are disrupting the traditional dairy space. These startups are not only catering to dietary needs but also raising awareness about the environmental benefits of plant-based choices.

But plant-based innovation goes beyond just milk! Indian entrepreneurs are developing an array of delicious and nutritious alternatives to all your favorite dairy products. For yogurt lovers, there's Epigamia, with their range of coconut-based yogurts in flavors like Alphonso mango and spiced litchi. Craving cheese? Imagine Dairy offers a variety of vegan cheese slices perfect for pizzas and sandwiches. Looking for a plant-based butter alternative? Buttery offers a spread made with ingredients like kokum butter and avocado oil. And for those who can't resist a sweet treat, vegan ice cream brands like Soyummy and Cococreme are churning out delicious flavors that are kinder to both your body and the planet.

The future of dairy is plant-based, and India's innovative startups are leading the way! Here are some more examples to explore:

• Plant-Based Yogurts: Epigamia (coconut-based yogurts), Epigamia (recently launched a plant-based yogurt brand), Axia Foods (high protein vegan yogurts)
• Plant-Based Cheese: Dancing Cow (wide range of cheese alternatives), Imagine Dairy (vegan cheese slices), Simply Vegan (vegan cheese blocks)
• Plant-Based Butters: Buttery (kokum butter and avocado oil spread), Vegan Planet (cashew-based butter)
• Plant-Based Ice Creams: Soyummy (vegan ice creams with interesting flavors), Cococreme (coconut milk-based ice creams), vegan ice cream brands by Epigamia and Creambell (recently launched)

Market Consolidation: A Sign of Maturation

The recent acquisition of the vegan dairy brand One Good by superfood company Nourish You in December 2023 signifies another interesting trend – market consolidation [3]. This strategic move strengthens Nourish You's position in the plant-based dairy sector, allowing them to leverage One Good's expertise in developing innovative plant-based dairy products [3]. The combined entity aims to expand its reach, build brand awareness, and introduce a wider range of plant-based dairy options to cater to the diverse needs of the Indian market [3]. This consolidation highlights the maturing nature of the plant-based dairy market, where established players are looking to solidify their presence through strategic acquisitions. Krystal Ventures Studio 's director Jasmine Bharucha founded and sold Katharos Foods, the world's first vegan cheese brand based on lemon seeds to One Good, earlier last year.

The Future is Plant-Based: A Look Ahead

The global plant-based dairy market is projected to reach a staggering value of USD 403.43 billion by 2029, reflecting a robust CAGR of 7.8% [1]. This growth is fueled by a confluence of factors: increasing consumer awareness, growing health and sustainability concerns, and a rising population grappling with lactose intolerance. As traditional dairy giants embrace this shift and new mergers and acquisitions strengthen market presence, the future of plant-based dairy appears bright. We can expect to see a wider variety of innovative plant-based dairy products catering to different dietary needs and taste preferences. This plant-based revolution is not just about providing alternatives, it's about creating a more sustainable and inclusive food system for the future.

References:

• Reference 1: "Dairy Giant Goes Green: Former Milk Plant Milks New Opportunity with Plant-Based Beverages!" Hindu Business Line.
• Reference 2: "India's Plant-Based Milk Market Booms" by GlobalData.
• Reference 3: "Inside India’s Largest Plant-Based Dairy M&A: Why Nourish You Acquired One Good" Financial Express.

~Krystal Ventures Studio