Shift towards Plant-Based Milk Alternatives to Influence Coconut Milk Market Growth
Proliferation of dairy alternatives such as plant-based milk has resulted in an intense competition on the milk aisle. This is mainly attributed towards factors such as health, taste and variety, coupled with increasing negative perception apropos to animal-based products. Low calorie and health promoting plant-based milk such as coconut milk is being largely consumed by people, on the back of rising flexitarian consumer trend. Flexitarian consumers typically prefer plant-based food products on the back of their nutritional value. Moreover, according to Institute of Food Technologists (IFT), more than 36% population in the United States is flexitarian and this trend is likely to proliferate worldwide in the coming years. In addition, with its health benefits such as promoting weight loss, increased stamina, improving heart health and immunity boost is expected to fuel demand of coconut milk in the coming years.
Labeling Regulations by Authorities Likely to Impact Coconut Milk Market Scenario
Regulations regarding labeling of plant-based milk such as coconut milk have led to legal lashings. Government bodies in various regions are banning the use of the word “milk” for plant-based milk alternatives. This is mainly due to the friction between dairy industry and its plant-based counterpart, which has resulted in the former requesting the government officials to restrict use of dairy-related marketing such as using the word “milk” for plant-based alternatives to protect interests of farmers and dairy product consumers. For instance, in United States, according to USDA (U.S. Department of Agriculture), annual consumption of dairy milk has significantly dropped since past couple of years as consumers are shifting towards plant-based milk alternatives, such as coconut milk. Against this backdrop, dairy industry has requested the federal authority to put restrictions in the use of “milk” as a label on plant-based alternatives. So is the case in Europe, wherein European Union is banning use of dairy label on its plant-based alternatives, for example, sale of coconut milk in Estonia is on its verge to get relabeled, according to EU. This is likely to impact sales of plant-based alternatives such as coconut milk through e-commerce platforms as government authorities are directing them to delist plant-based alternatives as “dairy”.
Rising Preference for Lactose-Free Milk to Bolster Coconut Milk Market Growth
Demand and sale of coconut milk is likely to remain influenced with the growing consumption of lactose-free milk. Growing lactose intolerant population is driving the need for plant-based or lactose-free products such as coconut milk, on the back of its improved digestion and absorption abilities. According to a study carried out by NCBI (National Centre for Biotechnology Information), 65% of the world’s population is lactose intolerant. Moreover, about 90% of population in East Asian Countries, especially adults, is lactose intolerant or prone to developing the syndrome. This has translated into a greater demand for lactose-free milk, including coconut milk as it is non-allergic and lactase free. This factor continues to influence the growth of the coconut milk market worldwide.
Asia Pacific to Showcase Higher Lucrativeness in the Coconut Milk Market
Demand for coconut milk in emerging economies in the Asia Pacific region is likely to witness an upsurge in the coming years. This can be attributed towards use of coconut milk in Asian cuisines owing to its unique taste and aroma. According to IFT, Chinese cuisine is largely preferred along with Korean, Japanese and Thai. Another aspect driving sales of coconut milk in Asia Pacific is the proliferating veganism in the region. Apart from the perceived thought of animal cruelty, veganism trend is also being influenced by environmental concerns caused by animal agriculture. This is giving a promising scenario for consumption of plant-based products, including coconut milk, in turn contributing to its market lucrativeness in Asia Pacific.
Coconut Milk Market Competition Landscape
Companies involved in the production of coconut milk can expect an optimistic market scenario in the coming years. Moreover, as plant-based milk is going mainstream, companies such as DanOne are planning to introduce coconut milk that is indistinguishable from its dairy counterpart. Key players are focused on enhancing their production capacities along with research and development activities to develop innovative coconut milk products. For instance, Dunkin’ is focusing on targeting coffee shops providing plant-based milk, and on 28th April 2021, it introduced coconut milk that can be used as an alternative to any drink to coffee shop chains. Nestle, in 2020, introduced lactose free plant-based products suitable for lactose intolerant consumers and vegan population. In December 2020, FONA International LLC was acquired by McCormick & Company Inc. The acquisition is intended to shift and expand McCormick’s portfolio towards health-focused plant-based alternatives.
Few of the major players in the coconut milk market include Nestle, Danone SA, SunOpta, Inc., McCormick & Company, Ecomil and Pureharvest.
Key Elements Included In The Study: Global Coconut Milk Market
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