December 29, 2022

The global plant-based milk market is anticipated to project robust growth at a CAGR of 8.8%, and reach $30.79bn (€28.9bn) by 2030, a new report by Research and Markets has forecast. Drivers will include increasing lactose intolerance among people, as well as innovative offerings by market players globally, etc.

Vegan milk is a type of plant-based milk that is free of dairy components. It can be produced from soy, rice, almond, hemp, coconut milk, etc. Vegan milk, as opposed to conventional cow’s milk, typically contains less fat and less cholesterol.

In addition, plant-based alternative companies are partnering with various artificial intelligence companies to bring innovations into their products, the report found. For instance, in 2020, Danone North America partnered with Brightseed, a biomedical artificial intelligence company, to explore the health benefits of plants. Also, companies are taking initiatives to spread awareness regarding these products among consumers.

Rising health consciousness fuelling market growth

Growing health consciousness among individuals, particularly after the Covid-19 pandemic situation, is prompting consumers to shift to plant-based milk as well as plant-based milk products since they offer various advantages such as they are rich in vitamins and minerals, low in fat, they do not contain cholesterol and are perfect for people with the low digestive system.

Also, another main reason prompting people to shift to vegan milk is the increasing lactose intolerance. Approximately 65% of the adult human population has some lactose intolerance, which causes abdominal pain and other gastrointestinal consequences after consuming dairy products. According to the National Institutes of Health (NIH), approximately 70 and 100% of adults of East Asian descent have lactose intolerance. Hence, this factor is anticipated to further fuel the market growth of plant-based milk worldwide.

New product launches aiding market growth

Various companies are focusing on launching new products and expanding their product portfolios to cater to the growing demand for plant-based milk from consumers, Research and Markets said. For instance, in 2021, Alt foods, an Indian plant-based dairy startup, launched plant-based milk made with ingredients such as sprouted sorghum, sprouted finger millets, amaranth, and oats. Additionally, several FMCG companies are offering products containing plant-based milk to customers. For instance, in 2021, Dunkin’ launched coconut milk on its menu. The coffee company introduced two new coconut milk-based beverages: the Dunkin’ Coconut Refreshers and the Coconut milk Iced Latte.

Similarly, in 2021, Starbucks launched plant-based oat milk bottled coffee beverages. It is a ready-to-drink version of a vegan drink. Moreover, several market players focus on investing and reformulating their products to expand their consumer base. For instance, in 2022, Danone North America announced it would invest USD22 million in new health and wellness initiatives, including reformulating 70% of its plant-based milk alternatives with healthier ingredients.

Availability boosting market growth

The accessibility of procuring raw materials such as coconut, soy, almonds, etc., particularly in emerging countries, is anticipated to contribute to the growing demand of this market, Research and Markets said. According to the FAO (Food and Agriculture Organisation), Indonesia is the world’s largest coconut producer. These products are readily available to consumers as well. Various plant-based milk companies are offering their products online, making it convenient for consumers to purchase these products.

In brief, market drivers will include:

  • Rising health consciousness
  • New product launches
  • Greater availability boosting growth

Challenges will include high prices and stringent legal inspections.

Trends overall include:

  • Change in tastes and preferences
  • Growing distribution channels
  • Increasing campaigns and marketing strategies
  • Ease of availability
  • Growing vegan population
  • Rising awareness of lactose intolerance

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