If you get your specialty coffee from one of the large coffee shop chains, you’ve probably noticed that a lot of customers prefer their espresso drinks with some type of plant-based milk. Almond, soy, and coconut milk seem to be the most popular varieties. However, pistachio, oat, and cashew milk are also very common. Plant-based milk varieties are the most common products in the rapidly growing vegan dairy industry. But there are also vegan cheese, butter, and cream alternatives. Although they are not high-demand products, their sales are growing by double digits annually. In this post, we’ll share more about the size of the global vegan dairy market. We’ll also shed some light on the trends in this industry and how businesses can benefit from the products offered by the vegan dairy industry.
Key takeaway: The vegan dairy industry is rapidly growing. It’s currently around 30 billion USD in size but is expected to grow by more than 12% annually for the next five years.
Size of the Vegan Dairy Industry
The global dairy alternatives market is estimated to be over 30 billion USD in size. The main products that contribute to that size are plant-based milks. They account for roughly two-thirds of sales. Yogurt alternatives, plant-based creamers, and dairy-free cheeses are the other categories that help the vegan dairy industry grow. The global market for dairy alternatives is expected to grow by an average of 12% per year until the end of the decade. A major driver for its annual growth is the fact that many new innovations and products are introduced by the vegan dairy industry. This includes goods made from various types of grains, ready-to-eat desserts, and ready-to-drink vegan beverages. Furthermore, a lot of new applications have been discovered for these products. For example, vegan milk for cocktails or vegan recipes without dairy are introduced constantly.
Although young Americans love plant-based milk, the Asia-Pacific region has the largest market share in the vegan dairy industry. That’s because of the large percentage of the population that is lactose intolerant. North America is the second largest market for vegan dairy alternatives. It has grown rapidly in recent years thanks to the increased number of people following a vegan diet. The focus on sustainability, the multiple new recipes, and the application of dairy alternatives have also helped the vegan dairy industry grow rapidly in North America. Europe is another important region for the dairy alternatives niche market. Manufacturers in Europe have shifted their focus towards dairy-free products as they aim to benefit from the trends in this sector.
Trends in the Vegan Dairy Industry
Product Diversification
In the past, the primary ingredients for making dairy-free products were soy and almonds. Nowadays, there are dozens of plant-based milk alternatives made of cashews, walnuts, pistachios, hazelnuts, and macadamia nuts. Banana and potato milk have also become trendy in recent years. Furthermore, new vegan cheese alternatives and different types of yogurt are constantly introduced to the market. This product diversification helps the market grow and gives chefs and cooking enthusiasts multiple opportunities to experiment with these new ingredients.
Focus on Sustainability
A growing number of consumers aim to reduce their ecological footprint. That’s why they prefer to buy plant-based products instead of traditional dairy. As manufacturers aim to answer the increased demand for dairy-free alternatives, they’ve invested in production capabilities. This has helped increase the supply and reduce prices of goods in the vegan dairy industry.
Technological Innovations
Thanks to research and development, producers of dairy-free products have significantly improved the taste and texture of these goods. Technologies have also made it easier for businesses to buy wholesale, automate various processes, sell goods through eCommerce platforms, and find new customers.
Multiple Benefits
The fact that plant-based products have various benefits compared to traditional dairy is yet another reason for their growth. Many diets include dairy-free alternatives and plant-based milk varieties have become a mainstream choice in coffee shops. The health benefits of dairy-free products will probably make them a preferred option for even more people in the future. The restaurant industry is likely to introduce even more recipes that use plant-based dairy alternatives. This will help the restaurants’ marketing efforts.
Market Growth
Business owners aim to be adaptable and follow the shifts in market demand. As the growth of the vegan dairy industry is expected to continue in the near future, many companies in the food and beverage industry will likely increase their focus on dairy-free alternatives. A growing number of wholesale dairy distributors will also offer such alternatives to their customers.
Products Offered by the Vegan Dairy Industry
There’s a wide range of goods offered by manufacturers of dairy-free alternatives. Let’s examine some of the most popular ones.
- Plant-based milks are made of almonds, soy, oats, coconuts, cashews, rice, hemp, and other products.
- Vegan cheese spreads and hard cheeses.
- Non-dairy yogurt alternatives can be used as a substitute in various yogurt recipes.
- Plant-based butter is made of a blend of vegetable, nut, and seed oils.
- Vegan ice cream is one of the most popular dairy-free desserts for vegans and lactose-intolerant people.
- Dairy-free creams and coffee creamers are also among the most popular products in the vegan dairy industry.
Frequently Asked Questions about the Vegan Dairy Industry
Do you want to read more about the reputable dairy wholesalers in the US? Or maybe you’re looking for reliable information about the latest trends in various sectors. Either way, you’ll find multiple free resources on BlueCart’s website. Below are the answers to frequently asked questions related to the vegan dairy industry.
What Are the Benefits of Plant-Based Dairy Alternatives?
The main reason for the growth of plant-based milk and dairy alternatives is that they are an excellent source of protein and minerals for vegans. Furthermore, the vegan dairy industry uses less land and water. This makes their products a more sustainable option compared to traditional dairy farming. Coconut and almond milk have distinct flavors. That’s why they can be preferred as ingredients in dishes and beverages even by non-vegans. The number of lactose-intolerant people has increased in recent years. That is yet another reason why sales of plant-based dairy alternatives are growing.
What Are the Disadvantages of Vegan Dairy Products?
The fact that vegan dairy products are more expensive than regular ones is one of their main disadvantages. Businesses that purchase plant-based milk or other vegan dairy alternatives should know that both their retail and wholesale prices are higher. Another con of plant-based milk is that these products often contain added sugar. They also contain less calcium compared to regular milk. Vegan cheeses, butter, and other dairy alternatives contain starches and various vegetable oils. In some cases, these ingredients can cause bloating.
What Are Other Vegan Alternative Products?
The growing number of vegans and vegetarians worldwide has helped the growth of vegan-related industries. For example, a variety of vegan meat alternatives have been introduced in recent years. Cultured meat is yet another innovative product that has become very popular. Although it’s not strictly speaking vegan, it is a more sustainable alternative to regular meat. Read more about the disadvantages and benefits of lab-grown meat. Legumes also play an important role in the manufacturing of vegan products. From soy and chickpeas to lupins and peas, they can be used to make dairy-free milk and other goods suitable for vegans.
Order Wholesale Vegan Alternatives at BlueCart
Our wholesale ordering software allows distributors of alternative dairy to offer their products to a wide range of businesses. Restaurants, cafes, and other companies benefit from BlueCart’s features that allow them to compare prices and find suppliers in different fields. Whether you’re a broadline distributor or a wholesaler specializing in a single sector, schedule a demo today. BlueCart is the all-in-one software to increase your B2B sales and automate various business processes.