The global dairy alternatives market was valued at USD 17.29 billion in 2018 and is projected to reach USD 29.64 billion by 2023, at a CAGR of 11.4% during the forecast period.
How is the growing demand in emerging markets creating opportunity for market growth?
The demand for dairy alternative food & beverage products is high in the developed markets of the US and Canada. Consumer preference for vegan products is rapidly rising as marketing campaigns are planned for highlighting their use and health benefit claims. Developing countries such as China and Australia are expected to experience a sharp upsurge in demand for dairy alternatives in the future. This demand may be driven by an increase in consumer preference for vegan diets. However, the demand for the use of dairy alternatives is expected to grow at a modest pace in early adopting countries such as the UK and Italy, while exponential growth is projected in new and emerging markets such as Australia and other Asia Pacific countries. Developing economies such as China and India are expected to experience a strong increase in the demand for dairy alternatives. In addition, the growing health awareness and rising lactose intolerance among consumers in the emerging Asia Pacific market make the market more lucrative.
The main drivers boosting the dairy alternatives market in the Asia Pacific region are:
- Penetration of a modernized retail chain
- High demand, coupled with low cost of production
- Increase in the production of processed and convenience foods
In terms of geographical coverage, the dairy alternatives market has been segmented into five regions, namely, North America, Asia Pacific (APAC), Europe, South America, and RoW. Europe is projected to be the fastest-growing segment during the forecast period, as Europeans are health-conscious and often check the ingredients on product labels before purchasing them. This high level of awareness has resulted in the demand for lactose-free or low-lactose, low-calorie, and low-fat foods in Europe.The increasing demand for dairy-free food & beverage products is driving the dairy alternatives market in Europe.
The online stores segment is estimated to be the fastest-growing segment for dairy alternatives in 2018. Many key players have started offering their products for sale through online channels. These online retails also offer a variety of options for a particular dairy-free food product at discounted rates as compared to traditional retail prices, to attract more customers. This gives immense opportunity to online stores to capture the market in the upcoming years.
Nutritional benefits offered by plant-based dairy alternatives is driving the market for dairy alternatives. The nutritional benefits such as reduced cholesterol level, improved cardiovascular health, and diabetes control of plant-based dairy alternatives have led to an increase in their consumption. Almond milk, rich in calcium and vitamin E, is recommended for both skin and bone health. It contains about one-third of the 2% calories in cow’s milk. Soy milk is widely consumed as a rich source of omega-3 fatty acids, protein, and fiber. It contains isoflavones that have anti-estrogenic and anti-cancer properties. Such nutritional benefits contribute to the growth of the dairy alternatives market globally.
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