The Role of Nutritional Advancements in Shaping the Dairy Alternative Market Landscape

The Role of Nutritional Advancements in Shaping the Dairy Alternative Market Landscape

Dairy alternatives such as plant-based milk made from almonds, soy, oats and rice are gaining popularity as substitutes for dairy milk. These dairy alternative products provide similar nutritional value as dairy milk and are suitable for people who are lactose intolerant. They are rich in various vitamins, minerals, and antioxidants. The rising health consciousness among consumers and growing vegan population has increased the demand for plant-based dairy alternatives.

The global Organic Dairy Alternative Market is estimated to be valued at US$ 27.0 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Health-Conscious Consumers
The market opportunity lies in the growing number of health-conscious consumers who prefer dairy alternatives for their perceived health benefits. Many consumers switch to plant-based dairy alternatives to reduce cholesterol, fat intake or manage weight. Some adopt a vegan diet and opt for non-dairy milks and yogurts for ethical or environmental reasons. The growth in consumer awareness about nutrition, health trends andclean label attributes isdriving the demand for organic and plant-based dairy substitutes. As consumers increasingly make buying decisions based on products' health, environment and sustainability footprint, the organic dairy alternatives market is expected to witness strong growth over the forecast period by catering to this consumer segment.

Porter's Analysis

Threat of new entrants: The threat of new entrants is moderate as the dairy alternatives market requires significant investment to develop new product lines, establish distribution channels and brand awareness. However, the rising demand is making it lucrative and low cost of raw materials is making it viable for new companies to enter.

Bargaining power of buyers: The bargaining power of buyers is high as the market has a large consumer base with multiple product and brand options. Buyers can easily switch between plant-based milk varieties based on price, quality, tastes and preferences.

Bargaining power of suppliers: The bargaining power of suppliers is moderate to high as key raw materials like almonds, soy, oats, coconut are agricultural commodities and prices depend on climatic conditions and harvests. Suppliers can leverage their control over raw material supply.

Threat of new substitutes: The threat of substitutes is moderate as dairy milk remains a viable and traditional substitute. However, with rising health awareness substitutes like juices and protein shakes are also competing for consumer wallet share in the beverage category.

Competitive rivalry: The competitive rivalry is high among existing players as the market is growing rapidly. Players compete on the basis of new product development, flavors, pricing, marketing and distribution to gain a larger market share.

SWOT Analysis

Strengths: Growing health and wellness trends driving demand for plant-based options. Wide variety of product offerings across milk, yogurt and other types catering to tastes.

Weaknesses: High production and R&D costs to develop new plant-based formulations. Supply chain challenges to source key ingredients sustainably at competitive costs.

Opportunities: Emerging markets in Asia Pacific and Middle East & Africa yet to be fully tapped. Rising opportunities from foodservice and convenience channels.

Threats: Threat from dairy lobby hampering market growth through regulations. Environmental impact if sustainable sourcing and production practices not adhered to could impact brand image.

Key Takeaways

The global dairy alternative market is expected to witness high growth over the forecast period of 2023 to 2030 driven by rising lactose intolerance, veganism and focus on plant-based nutrition. The global Dairy Alternative Market is estimated to be valued at US$ 27.0 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

North America currently dominates the market backed by growing consumer preference towards dairy-free products in the US and Canada. The Asia Pacific region is anticipated to be the fastest growing market for dairy alternatives led by population growth, rising discretionary incomes and shift towards western diets in countries like China, India and Japan.

Key players operating in the dairy alternative market are Danone North America Public Benefit Corporation, The Hain Celestial Group, Blue Diamond Growers, SunOpta and Sanitarium. These leading brands are investing in product developments