ROCKVILLE, Md. — The market for dairy and dairy alternative beverages will reach a projected $28 billion by 2021, according to market research firm Packaged Facts in the new report, Dairy and Dairy Alternative Beverage Trends in the U.S., 4th Edition. Spurring the segment's growth will be plant-based dairy alternatives, which are expected to come to represent 40% of the combined total of dairy and dairy alternative beverages, up from 25% in 2016 when dairy alternative beverages alone accounted for barely $6 billion in retail sales.
The shift away from traditional dairy products such as cow's milk towards plant-based alternatives revolves around health concerns with a growing number of consumers coming to believe that plant-based foods are healthier than animal-based foods. Further, there is a growing consumer base that is motivated by animal welfare concerns, leading them to choose plant-based beverages, as well as other plant-based foods over animal-based products.
"Vegetarians and vegans together account for less than 15% of all consumers and their numbers do not grow very rapidly, but a growing number of consumers identify themselves as flexitarian or lessitarian, meaning that they've cut back on their consumption of animal-based foods and beverages. It is this group that is most responsible for the significant and ongoing shift from dairy milk to plant-based milk," says David Sprinkle, research director for Packaged Facts, which also recently established a free curated webpage on dairy and dairy alternatives.
In recent years, the plant-based dairy beverage alternatives category has seen an expansion of several nut- and legume-based milk alternatives beyond soy, rice, coconut, and almond to include varieties made from cashews, hazelnuts, macadamias, peanuts, pecans, and tiger nuts. In addition, there are non-dairy milks being offered made from bananas, cassava, oats, and potatoes, among others.
Looking ahead to 2018, Packaged Facts expects several of these new and novel non-dairy milks to find a wider audience:
- Barley Milk: Pioneering a new plant-based milk alternative category is Canvas, a startup that has developed a way to convert unused barley grain leftover from the beer brewing process into a sustainable plant-based beverage—a winning idea for consumers concerned about the issues of food waste and sustainability. The line offers five flavors including original, cold brew latte, cocoa, turmeric chai, and matcha. All varieties are free from refined sugar, dairy, and artificial ingredients.
- Flax Milk: The key selling point for flax milk is its high Omega-3s content. The leading brand, Good Karma, reports that it offers 1,200 mg per serving of this essential nutrient, further noting that its flax products are free of all major allergens. In addition to its various sweetened and unsweetened, flavored, and protein enhanced flax milks, Good Karma offers flax milk-based drinkable yogurts and eggnogs.
- Hemp Milk: Participants in the hemp production industry have suggested that only 1% of the North American population has ever tried a food or beverage with the ingredient. This is a segment with the potential for rapid growth as consumers look for alternatives to the established plant-based beverage segments. Hemp is an excellent source of Omega-3 fatty acids as well as being a good source of plant-based protein, with all ten essential amino acids.
- Pea Milk: While the idea of pea milk may sound quite unappetizing to many, it does have certain advantages over other dairy alternatives that may make it a hit with consumers. For example, the pea milk brand Ripple says that one serving has 8 grams of protein, the same as cows' milk, compared to about 1 gram of protein in coconut or almond milk. And, Ripple has half the sugar of cows' milk—something more and more consumers are sensitive to as they watch their waistlines—along with 50% more calcium, and vitamin D and iron. Ripple offers a pea-based half & half product as well as its pea milk line.
- Quinoa Milk: This beverage formulation is reported to be high in protein, fiber, vitamins, and all nine of the essential amino acids. It also contains important minerals such as magnesium, iron, copper, manganese, zinc, and phosphorus and has a low glycemic index.
About the Report
Dairy and Dairy Alternative Beverage Trends in the U.S., 4th Edition examines the reasons behind the decline in dairy milk consumption and the reasons for the rise in plant-based milks, such as health concerns, with a growing number of consumers coming to believe that plant-based foods are healthier than animal-based foods. Further, the report considers the growing consumer base that is motivated by animal welfare concerns, leading them to choose plant-based beverages, as well as other plant-based foods over animal-based products.
View additional information about Dairy and Dairy Alternative Beverage Trends in the U.S., 4th Edition, including purchase options, the abstract, table of contents, and related reports at Packaged Facts' website: https://www.packagedfacts.com/food-beverage-market-c84/.
Don't miss Packaged Facts' related Dairy and Dairy Alternatives Page. There visitors can explore complete dairy industry coverage through our market research reports, blog posts, press releases, multimedia & more, consolidated in one place for convenience. Visit the page at: https://www.packagedfacts.com/Content/Featured-Markets/Dairy-and-Dairy-Alternatives.
About Packaged Facts
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.
For more essential insights from Packaged Facts be sure to follow us on Twitter and Google+. For infographics, tables, charts and other visuals, follow Packaged Facts on Pinterest.
Please link any media references to our reports or data to www.packagedfacts.com.
Source: Packaged Facts