The airy alternative markets are estimated to witness a robust growth primarily due to the unrestrained popularity of plant-based food which in turn stems from the rising adoption of vegan and vegetarian diets that has emerged as a ubiquitous matter. The rationale of this trend is consumers' interest in health and the considerations of animal welfares and as well as the negative spillover effect that results from dairy farming. Additional factors like lactose intolerance have steered consumers away from dairy-based protein and adopt dairy alternative products.
Moreover, irrespective of the product category, food and beverage products have always been associated with four mains aspects which are value, taste, identity, and convenience. The growing pool of millennial consumers has added two new attributes which are namely ethical values and benefits. Therefore, the consumption behavior is expected to drive the dairy alternative market growth.
Final Consumption Expenditure of Households – Non-Alcoholic Beverage, Australia
In Millions of Euro, at current prices
The APAC region is expected to contribute to a sturdy contribution to the forecasted growth of dairy alternative market, primarily due to the increasing population, the growing availability of disposable income, expansive penetration of eCommerce due to availability higher internet bandwidth. With respect to Australia, the important purchasing considerations which influence the consumption behavior I an environment based on the environment, health, wellness, among others. The country has one of the highest levels of per capita income GDP. Before the advent of COVID-19, the Australian economy registered economic growth consecutively for the past 29 years. The Australian consumer foodservice industry is valued at A$58 billion (US$44 billion), as per USD. The consumers in Australia are also open to new experiences and are open to product innovation, a factor that is in part expected to drive the growth of the market pertaining to dairy alternatives in the next few years.
Underscored by positive nutrition there also has been a marked shift from food avoidance to include healthy alternatives like that of dairy alternative. On the other hand, with respect to India, the advent of COVID-19 and the resultant nationwide lockdown has substantially altered consumer behavior leading to preferences. Moreover, due to growing at-home consumption consumers in India have accommodated the convenience and price value frozen, ready-to-eat, packaged, and processed foods, within their purchase considerations which are expected to drive the growth of this market among others. Also facilitated by social distancing norms is the increased reliance on eCommerce.
Besides the realization of the need for investing in a variety of strategic moves to consolidate their respective market share in the dairy alternative market by various food and beverage establishment is expected to augment the growth of dairy alternative market, catering to both B2B and B2C demands. Moreover, the emergence of small disrupters essentially food-tech startups is incentivizing a higher degree of investment in product launches, mergers as well as acquisitions, which is not only enabling them to safeguard their market share but also allowing them with an opportunity to expand their presence both nationally and internationally.
September 2018 – Acquisition
The Netherlands based multinational food company with a focus on organic foods had reportedly completed the acquisition of Abbot Kinney’s, which was reportedly a fast-growing brand and market leader in organic almond and coconut yogurts and ice-creams. According to the latter, this acquisition by the former would facilitate in the materialization of Abbot Kinney’smission to make plant-based dairy alternatives mainstream.
September 2018 – Product Launch
GreenSpace Brands Inc. (TSXV: JTR) had announced the launch of Riot Eats™?, which is its new plant-based dairy brand. The brand was reported to enter the market with several new products across various categories that comprise plant-based butter, cheeses, and spreads.
March 2019 – Product Launch
So Delicious® Dairy Free, an organization that specializes in plant-based foods, has reportedly launched a new range of oat-based chilled desserts, which according to the organization was a market first. Then relatively new products are devoid of GMO as well as gluten and are essentially vegan. During the announcement, the range of products was made commercially available in three flavors Caramel Apple Crumble, Oatmeal Cookie, and Peanut Butter & Raspberry.
October 2019 – Product Launch
With the rationale to reinvent the saturated RTD (ready to drink) industry a relatively new dairy alternative brand, OATH had reportedly announced its launch with OATH Organic Oat-Milk with Plant Protein which has been made commercially available in four flavors, namely Double Chocolate, Golden Turmeric, Indian Rose and Matcha Chai. Leveraging ingredients like protein-rich oats, nuts, and seed OATH facilitates the enhancement of metabolism and restoration of energy.
November 2019 – Ingredient Launch
A range of next-generation chickpea isolates have been reportedly launched by a food-tech startup called ChickP Ltd had that are particularly designed for plant-based dairy alternative products. This reportedly path-breaking plant protein has been developed by scientists at the Hebrew University of Jerusalem by employing patent-pending technology to extract up to 90% pure protein out of the chickpea seed. This ingredient is expected to provide alternative dairy producers with means to overcome challenges in processing as well as foster consumer acceptance, thereby responding to the demand for highly nutritious and tasty products.
January 2020 – Partnership
In partnership with Oatly the coffee chain conglomerate, Starbucks had reportedly announced a new range of plant-based kinds of milk which are essentially Oatly’s vegan oat milk to its permanent menu at around 1,300 locations across Canada and the US.
March 2020 – Funding Raising
A food tech startup called Prolupin which is known for its portfolio of dairy-alternative products with proteins derived from lupin beans as one of its ingredients has reportedly announced the conclusion of financing round which was reportedly led by Capricorn Partners and Novax. It accounted for double-digit million euro. This round will reportedly enable the company to respond to the demand and work toward the international expansion of their vegan brand called “Made with LUVE.”.
In addition to the current market conditions, the above snapshot of key market developments pertaining to dairy alternative underscores the upward trajectory that has been forecasted for this market.