A global shift towards a healthy lifestyle has created a demand for gluten-free, organic, natural and plant-based or vegan food products. This has created a massive degree of rivalry and interruption in the meat and dairy industry. This trend is being compounded by a rising wave of conversations around sustainable and plant-based product options across numerous categories that are better for the environment and human health in the long term.
Consumption of plant-based food products has been characterized by elite spending patterns that comes with higher affordability. However, product diversification has allowed companies to launch more and more products. While vegan yoghurt is still at its nascent stage, it represents a market of more than US$ 600 million, outperforming broader vegan food segment over the past five years.
Vegan yoghurts are primarily made of almond, cashew, coconut, flaxseed oats and sometimes peas. They are best known for their gut-boosting and live pro-biotic cultures. Growing number of consumers seeking healthy alternatives have prompted players to make sizeable investments in product innovation.
According to Plant Based Foods Association, U.S. alone has witnessed a 39% rise in consumption of plant-based yoghurt and is estimated to be worth US$230 million market by the end of 2025. This trend is being fueled by decline of 3% in consumption of conventional yoghurt in 2019. In addition, rising number of lactose intolerant population is also boosting the demand for vegan yoghurt. According to the National Digestive Diseases Information Clearinghouse, around 30 million to 50 million Americans are lactose intolerant.
Almond Milk Derived Yoghurt to Remain Popular
Vegan yoghurt, sourced from almond milk, is expected to account for relatively high value share during the forecast period. Low cholesterol levels of almond milk and unsaturated fat content offers good digestive and immunity benefits. Thus, these factors are collectively expected to fuel the segment during the forecast period.
Fruit flavored vegan yoghurt segment is also projected to register the fastest growth during the forecast period. The segment will primarily be driven by the product preference showed by Millennials and kids. Additionally, wide offerings by the manufacturers are also expected to leave the consumer spoilt for choice.
E-retail to Boost Sales for Vegan Yoghurt Amidst COVID-19
Vegan yoghurt producers are primarily targeting convenience stores and e-retailers for selling their products. The e-retail segment is expected to register highest CAGR over the forecast period as the COVID-19 pandemic continues to affect physical shopping efforts. The option of safe purchasing will keep this segment in the lead in the coming few years.
Europe Sets an Example for Plant-based Food Product Consumption for the World
Europe is estimated to account for largest value share followed by North America. European countries such as UK is driving the demand for plant-based products. The country is one of the biggest markets in Europe for plant-based food products, representing around 40% of the European meat substitutes market.
Growth of the market is expected to skyrocket as it is still at an initial stage of its life cycle. Other geographies, especially in developing nations, are expected to show a favourable growth as the market remains in its introductory phase.
Wider Offerings and Networks to Remain Integral to Companies’ Progress
Some of the major players consider in the report includes, Green Valley Organics, YOSO, The Oatly AB, Granarolo Group, INC., Vitasoy, Amande Cultured Almond Milk, Daiya Foods Inc., Yoplait USA GOOD KARMA FOODS, INC., Barambah Organics Pty Ltd., WhiteWave Services, Inc among others.
The study indicates that the companies are expected to introduce new products to remain relevant. Following are the notable trends in the global vegan yoghurt market: