"Growing prevalence of lactose intolerance expected to drive dairy alternatives market"
The global dairy alternatives market size was USD 8.80 Billion in 2015 and is expected to witness growth at a CAGR of 16.6% over the forecast period. Dairy alternatives are lactose-free products and are highly preferred by customers with lactose intolerance problems.
The market is expected to grow at a significant rate owing to increasing consumer awareness regarding the nutritional benefits offered by these products than their dairy counterparts. Increasing occurrence of the milk allergies among consumers is expected to be a key factor driving the industry growth. Changing consumer dietary habits has resulted in increasing adoption of vegan diet which is expected to have a positive impact on the market growth.
Improving consumer awareness towards health in addition to growing disposable income in countries including Brazil, India, China, and Japan is anticipated to drive growth for productssuch as soy milk, almond milk, coconut milk and rice milk over the forecast period.
Manufacturers in the industry distribute their products through convenience stores, health food stores, supermarkets, and e-retailers. Easy availability and a wide variety of formulations such as plain, flavored, unsweetened, and sweetened are expected to increase the popularity of these products over the projected period. The industry players are engaged in the R&D to improve nutritious value and taste of the products in order to meet the rising consumer demand. However, fluctuating raw material prices and high competition from existing players with well-known brand names are anticipated to challenge for the entry of new players.
The consumers are likely to shift their preference towards almond based dairy alternative products owing to high nutritional values and better taste offered by these products than soy milk. Growing demand of lactose-free cheese and ice-creams in countries including U.S., UK, and Germany is anticipated open new avenues for the market over the next eight years. Asia Pacific dominated the industry and is expected to grow at the highest growth rate owing to increasing cases of lactose intolerance, rising consumer awareness, and rapid population growth in the countries including China and India.
U.S. Dairy Alternatives Market Revenue, By Product, 2013 - 2024 (USD Million)
"Soy milk was the largest selling product in 2015"
Soy milk was the largest selling dairy alternative accounting for over 40% of the global market in 2015. The high share was attributed to easily available raw material and cheaper prices as compared to almond and other raw materials including cashew and walnut.
Almond milk is expected to be the fastest growing product segment for and is anticipated to grow at a CAGR of over 18% from 2016 to 2024. The increasing popularity of almond milk owing to high protein, fiber, lipids, and energy content is expected to drive demand. Better taste and texture offered by almond milk as compared to its counterparts is likely to offer a competitive advantage for the product over the forecast period.
Almond milk help regulates blood pressure and offers benefits to the heart, kidney, and skin, which is likely to increase its popularity over the next eight years. Rice milk accounted for over 6% of the overall industry in 2015. Increasing need for rice milk in manufacturing snacks and baking products is expected to have a positive impact on the industry growth. Rice milk is the least allergic substitute for dairy products and has high demand from consumers with milk and nut allergies. These products can be fortified with vitamin D and calcium, which is anticipated to propel demand over the forecast period.
"Higher preference for flavored dairy alternate products as compared to their counterparts"
Flavored dairy alternative products accounted for over 40% of the total market in 2015. Novel flavors offered by manufacturers coupled with increasing demand for manufacturing food products such as lactose-free desserts and yogurt is expected to drive demand.
Plain dairy alternatives are a key segment of the industry is anticipated to grow at a CAGR of over 15% from 2016 to 2024. Growing demand for plain unsweetened products for food & beverage applications is anticipated to have a positive impact on the industry growth over the projected period.
"Innovations in dairy alternative beverages expected to be a major driving force"
Beverages are anticipated to be the largest application segment for the industry and are expected to grow at a CAGR of over 55% from 2016 to 2024. Increasing penetration of lactose-free beverages in North American household as a substitute to cow milk is likely to drive demand.
Cheese manufacturing is expected to be a key application segment for the industry and is expected to grow at a CAGR of over 15% over the next eight years. Changing consumer dietary habits and rising consumption of fast food in emerging economies such as Brazil, China, and India are likely to drive demand for lactose-free cheese products over the forecast period.
"Asia Pacific dairy alternatives market expected to witness rapid development"
Asia Pacific was the largest consumer of the product and accounted for over 40% of global volume in 2015. Over 80% of the South East Asian population suffers from lactose intolerance, which is expected to propel demand over the forecast period.
Europe is expected to be a major market and is expected to grow at a CAGR of over 10% from 2016 to 2024. Rising popularity of plant-derived nutritional products coupled with increasing consumer demand for cholesterol free food among European consumers is anticipated to have a positive impact on non-dairy products. Rising demand for lactose-free ice- creams and yogurt in the UK and Germany are likely to drive demand over the next eight years.
"ADM, Vitasoy International and Danone hold significant market position"
The industry is fragmented owing to the presence of numerous manufacturers with broad product portfolio. The key players in the market are ADM, Danone, Vitasoy International, Sunopta, Earth’s Own Food and Blue Diamond Growers. In July 2016, France-based Danone acquired The Whitewave Foods Company to strengthen company presence in the North America.
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