Dairy-Free Ice Cream Market Size, Share & Trends Analysis Report, By Source, By Flavor (Chocolate, Vanilla), By Distribution Channel (Supermarket/Hypermarket, Online), And Segment Forecasts, 2019 - 2025

Report Overview

The global Dairy-Free ice cream market size was valued at USD 455.9 million in 2018 and is anticipated to expand at a CAGR of 14.8% over the forecast period. Increasing awareness about health, rising incidences of lactose intolerance and other milk-related health issues, and socialization trends are expected to fuel the market growth in the forecast period.

The rapid increase in commercialization, along with growing plant-based milk production, is a key factor propelling the demand in the non-dairy ice cream market. Product innovation for enhancing taste and technological advancements in the industry provides a positive perspective to the market.

Multiple product launches with different tastes and preferences will act as a stimulant for the market in the forecast period. For instance, apart from its existing flavors, Ben & Jerry’s come up with various other flavors, particularly for the U.K. Increasing number of distribution channels owing to the penetration of various MNCs in the market will propel the overall sales volume of the product.

However, the harmful effects of the source by which such ice creams are made may hamper the growth of the vegan ice cream market in the long term. For instance, high consumption of almond milk leads to discomfort and bloating, and can eventually reduce food intake. Another restraining factor in the market can be the variation of nutritional content in the products. Although, the majority of the population is shifting towards plant-based ice creams instead of dairy ice creams due to the aforementioned factors. This will, in turn, negate the effect of the restraining factors and will lead the dairy-free ice cream market to the positive side.

Source Insights

On the basis of source, the market is segmented into coconut milk, almond milk, and soy milk. Coconut milk dominated the market with a share of 37.4% in 2018. Easy availability, low cost, and ease of processing are the key factors boosting the growth of the segment. It is the most commonly used source by many brands due to its high consumer demand. In the vegan ice cream market, Almond milk is found to be the fastest-growing source for production, expanding at a CAGR of 15.8% over the forecast period. Consumption of almond milk for producing vegan products, especially in North America, will propel the market demand.

Flavor Insights

Based on flavor, the non-dairy ice cream market is categorized into chocolate, vanilla, and strawberry. Flavor preferences vary from country to country. For instance, in Europe, lemon is the favorite flavor among consumers. Chocolate is the most preferred flavor among consumers and it is estimated to expand at a CAGR of 15.0% over the forecast period. Vanilla is the second most preferred flavor among the consumers and manufacturers due to its high compatibility with the source products such as coconut and soy milk. It is expected to register a CAGR of 14.4% in the forecast period.

Distribution Channel Insights

On the basis of distribution channels, the market is classified into supermarket/hypermarket, convenience stores, and online.   Supermarket/hypermarket is the most preferred distribution channel among consumers owing to the easy availability of the products, wide product range, and comparison among the products under one roof.

The online segment accounted for a 32.4% share of the overall revenue in 2018 and is expected to emerge as the fastest-growing distribution channel. Easy access, availability of discounts, and a wide variety of options to explore are the key factors responsible for the growth of the segment.

Regional Insights

North America accounted for a major market share in 2018 and is anticipated to expand at a CAGR of 10.7% over the forecast period. Demand for vegan ice cream is expected to increase due to growing awareness about health issues due to lactose in the milk. North American ice cream giant Ben & Jerry’s has been one of the leading contenders in Dairy-Free and vegan flavored frozen desserts. Its unique line of dairy-free options has enabled it to capture a significant share in the market, propelling regional growth. 

Asia Pacific is a prominent regional market as China and India together account for 36.3% of the global population and China is one of the leading consumers of ice cream. Asia Pacific is likely to register a CAGR of 15.4% in the forecast period. Europe is the fastest-growing regional market, expanding at a CAGR of 20.0% in the forecast period. Shifting preferences toward vegan products and changing lifestyles are driving the demand for the product in the region. Another factor boosting the market growth in Europe is the presence of strong players and frequent product launches. Local as well as international brands such as Swedish Glace, Ben & Jerry’s, and Booja-Booja will continue to have a positive impact on the regional market. 

Key Companies & Market Share Insights

The market presents moderate to low entry barriers for the new entrants. Key players operating in the market are General Mills, Inc.; Uniliver; Booja-Booja; Tofutti Brands, Inc.; and Bliss Unlimited, LLC. The overall market is driven by mergers and acquisitions and product innovation. For instance, in 2014, Uniliver acquired Talenti Gelato e Sorbetto and this acquisition increased Unilever's share in the Dairy-Free market.

Leading companies in the industry are expanding their business globally to maximize their profit and market share. These companies are shifting from developed to developing countries. For instance, General Mills expanded its operations in more than 100 countries after its success in the United States.

Dairy-Free Ice Cream Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global Dairy-Free ice cream market report on the basis of source, flavor, distribution channel, and region:

• Source Outlook (Revenue, USD Billion, 2015 - 2025)

  • Coconut

  • Almond

  • Soy

• Flavor Outlook (Revenue, USD Billion, 2015 - 2025)

  • Chocolate

  • Strawberry

  • Vanilla

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

  • Supermarket/Hypermarket

  • Convenience Stores

  • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • India

    • China

  • Rest of the world

    • Brazil

    • Argentina