The plant-based dairy alternatives industry is estimated to grow from $15.8 billion in 2019 to $35.8b by 2026
The value of the global dairy market is currently $450 billion USD, yet whilst the dairy market is expected to grow by 1.8% in the next decade, the fluid milk market is on the decline.
The growth in plant-based dairy alternatives is believed to be due to several factors including allergies and intolerances to lactose or cow milk proteins, environmental/sustainability considerations and animal welfare concerns, vegan diets, taste and perceived health benefits.
Tom Soutter, Trader, from Czarnikow who conducted the research said; “It is interesting to note that during the pandemic lockdown which is in place in many countries, sales of traditional milk surged due to people stockpiling, the sales of oat milk have spiked even harder. Sales for each were up 32% and 476% respectively for the week ending March 14th in the United States.”
Long term, if young people continue to more readily adopt plant-based alternatives and stick with them, particularly in APAC where a firm base of consumers already exists, then the current short-term growth estimates of 12.4% CAGR seem justified.
Tom Soutter concluded; “I think realistically there will be a slowing of the growth rate for plant-based alternatives over time. However, plant-based alternatives will continue to displace dairy in the fluid beverage sector.
“For plant-based alternatives to meaningfully substitute dairy commodities (powders, cheese, butter etc.) and the nutrition density of dairy – further breakthroughs will be required. Until then, there is the market space for dairy and plant-based alternatives to exist harmoniously.”
