Global plant-based yogurt market has been growing with nearly 6% CAGR, while the demand in Asia-Pacific excluding Japan at a higher rate. The Asian yogurt market has traditionally remained quite strong. However, due to rise in number of lactose intolerant population, the consumers are now switching to plant-based yogurt. According to the National Institutes of Health, 80% of both Asian and African population have lactose intolerance. Owing to the rise in number of lactose intolerance cases among the consumers, the consumers are looking out for lactose – free dairy products, including plant-based yogurt.
Easier Availability of Raw Materials Boosting Consumption
The timely availability of raw materials is of utmost importance for the growth of food products market, including that of plant-based yogurt. Production of various forms of vegan milk that are required to produce plant-based yogurt have grown in abundance, thus enabling the producers with ease of procurement. This not only contributes towards maintaining zero demand supply gap of plant-based yogurt, but also supports the hassle-free procurement. It has been observed that the providers of these milk have mushroomed significantly in the recent past, especially in Asia-Pacific, owing to large demand in the region.
Growing Vegan Footprint Benefitting Demand
The number of vegan consumers have swelled in North America, resulting in the growth of several vegan products including plant-based yogurt. The celebrities, athletes, as well as other pronounced figures, have been embracing and supporting the consumption of vegan foods such as plant-based yogurt.
In 2014, only 1% of the U.S. consumers claimed to be vegan, while this percentage rose to 6% in 2017. Several health organizations including Kiaser Permanente, the Dietary Guidelines Advisory Committee, and the American Institute of Cancer Research have been recommending vegan foods, including plant-based yogurt.
The support for plant-based food products has significantly impacted the dairy industry in the U.S., which is clearly evident from the declining dairy milk sales and soaring milk product alternatives including plant-based yogurt. According to a combined research study by the Vegan Society and Vegan Life magazine, the number of vegan people in the UK has increased by 350%, compared to a decade ago, consequently leading to surge in non-dairy products including plant-based yogurt. Observing this shift, Sainsbury’s and Tesco have introduced their extended new range of vegan products, such as plant-based yogurt. Vegan population in Portugal rose by 400% during the past decade. The growing vegan population has led to a surge in the demand for non-dairy products, including plant-based yogurt.
The migration of dairy consumers towards non-dairy alternatives including plant-based yogurt, have led to the decline in revenues in certain health-conscious countries such as Australia. Four in ten Chinese prefer non-dairy products including plant-based yogurt, over the dairy variants. Thailand leads the Asian population in the consumption of dairy alternative products such as plant-based yogurt.
Owing to the large Muslim population in Middle-east & Africa, the consumers find it difficult to completely eradicate animal-based foods from their routine. Still, owing to growing health consciousness of the consumers, the shift from dairy to non-dairy products including plant-based yogurt, has aggravated in the region.
Food retailers employing veganism drive bolstering the demand for plant-based yogurt
While observing the shifting food trend, wherein the consumers are becoming more conscious towards the source of ingredients, several food chains and independent restaurants across the world have started to include non-dairy products including plant-based yogurt, in their menu. U.S.-based fast casual restaurant By Chloe serves 110,000 plant-based meals each month. The impact of these drives have also been felt within plant-based yogurt industry in the U.S. A Ukrainian restaurant and food truck Vegano Hooligano, having locations in Kiev and Odessa, also serve vegan foods including plant-based yogurt to cater to their growing demand.
Intensifying competition amongst plant-based yogurt manufacturers benefitting consumers of plant-based yogurt
The competition in plant-based yogurt market have been observed to intensify in the recent years. The manufacturers of plant-based yogurt are investing in improving their product offering as well as expanding their production capacities to cater to the rising demand. For instance, in 2016, General Mills announced the expansion of its Buffalo, U.S. plant. In 2016, The Hain Celestial Group launched 100 new products, which included plant-based yogurt products under the Dream brand. In 2017, Danone launched a 100% natural plant-based yogurt range in France, available in both, natural and flavored versions. In 2017, Good Karma Foods announced a minority investment and a distribution deal with Dean Foods Company, which will also boost the expansion and distribution of its plant-based yogurt.
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