The latest report to predict growth in the dairy alternatives market has once again predicted an industry only getting bigger.
The most recent study to indicate massive growth was carried out by research group Reportlinker, which says the dairy alternatives market was worth $7.37 billion in 2016 but is predicted to have nearly doubled by 2022 hitting $14.36 billion, growing at a CAGR of 11.7 per cent.
The reason given for the huge growth in the sector is due to “increasing health consciousness among consumers, growing lactose-intolerance, and inclination toward a vegan diet.”
The report claims North America to be the fastest growing region for dairy-free substitutes. “The North American dairy alternatives market is led by wide applications in food and beverage products, along with their health benefits,” it says.
“Growing health consciousness among consumers and the rising number of cases of lactose intolerance and milk allergies are fuelling the market for dairy alternatives in this region. According to the National Dairy Council, in 2011, about 25 per cent of the US population and 75 per cent of the world’s population have low lactose levels or are lactose maldigesters.”
Identifying some key market players such as Whitewave Foods, Blue Diamond and Valsoia; coconut milk is predicted to be the fastest-growing segment over the forecast period.
“One of the major drivers for the growth of the coconut milk segment is attributed to its increased application areas — ranging from confectionery, snacks, and yoghurt to frozen dessert.
“Commercially, newer varieties of coconut milk in the form of coconut milk powder are being introduced, which further supports its growth in the dairy alternatives market. Also, it is a good source of energy and provides nutrients such as minerals, vitamins, and electrolytes.”
The emerging flavoured and unsweetened segment is expected to be the fastest growing formulation of dairy alternatives. “Flavoured and unsweetened dairy alternatives are increasingly becoming popular, owing to the rise in health consciousness among consumers who refuse the usage of added artificial or natural sweeteners in their products.”
This is one of many reports recently which indicates huge growth in the dairy alternatives market.