The global market for dairy alternative drinks is expected to reach US$16.3 billion in 2018, significantly rising from US$7.4 billion in 2010. The market in the US is predicted to grow at a CAGR of 10 percent during the forecast period between 2010 and 2018.
China’s dairy alternative drinks market will grow at a CAGR of 18.7 percent during the forecast period, and will reach a market value of US$6.7 billion. Want Want, a food processing company in China, recently announced its expansion into soy and other plant-based beverages.
Dairy alternative drinks accounted for seven percent of global dairy launches, up from six percent in 2015, according to the study. Global launch numbers more than doubled over a five-year period—just over half of these launches were positioned as lactose-free, nearly 40 percent as vegan and just under a quarter as GMO-free.
“The dairy alternatives market has seen rising levels of interest in recent years, spurred mainly by consumers increasingly looking for lactose-free, dairy-free and plant-based/vegan options as healthy lifestyle choices” said Lu Ann Williams, director of Innovation at Innova Market Insights. “The category has been further boosted by the growing availability and promotion of plant-based options to traditional dairy lines, particularly beverages, but also cultured products such as yogurt, frozen desserts and ice cream, creamers and cheese.”
‘Plant Powered Growth’ is a key trend in 2017, according to the study. This is due to developments in plant-based foods, which are seeing increased demand from consumers who do not want to commit to a full vegan or vegetarian lifestyle, but choosing food and beverage options to suit their lifestyle, social life or health conditions.
“There has been ongoing launch activity for a range of increasingly sophisticated flavours and blends of non-dairy milks from different sources,” concluded Ms Williams.