Dairy alternatives include milk which is processed from grains, nuts and seeds. Unlike the regular dairy beverages they have low cholesterol and low fat content. Dairy alternative beverages are majorly consumed by people having lactose intolerance or milk allergy and vegans. Major substitutes of cow’s milk which are widely consumed by individuals include soya milk, almond milk, coconut milk and rice milk. These products vary in their nutritional value, taste and health benefits they provide. Manufacturers have been focusing various consumer groups that are seeking for specific health benefits like cardiovascular health, bone health, general wellness, fitness and so on by fortifying multiple nutrients like vitamins, minerals and omega-3 fatty acids. However, apart from health benefits the consumers are also considering the taste as a factor for buying decision.
Consumption of conventional milk products have witnessed decline in past few years especially due to allergy and intolerance issues thus driving the market for plant based milk products. Dairy alternatives industry is strengthening over time with acceptance from the consumers and innovation in terms of nutrient fortification and flavor of the product. However, the providers are facing issues on the supply side especially for almond milk. Consumers are actively trying out different brands and different flavors within brands. They are looking for mix of flavors and dairy alternative blends which is estimated to be the next big trend. Market players have a fair chance to expand their product portfolio by entering into different product segments within dairy alternative beverages market. In addition, product providers have huge opportunities to venture into related products like tofu, lactose free yogurts and ice-creams. However, this market is facing tough competition from conventional dairy industry that is focusing on reducing fat content in their products with enhanced nutrition and taste.