Plant-based milk products have become very popular due to their numerous health advantages, accessibility, and rise in the vegan population. Customers, especially those with milk allergies, are demonstrating a strong preference for using plant-based milk products.

Thus, demand for these products, including plant-based milk, butter, and cheese, will grow significantly over the coming ten years. Throughout the forecast period, this will continue to give the growth of plant-based milk products a powerful boost.

In 2021, the plant based milk market was USD 35 billion, and by 2030, it will reach USD 123.1 billion, growing at a 15% CAGR during the forecast period. 

There is a high demand for plant based milk due to the rise in cases of lactose intolerance and increased awareness of the significant nutritional advantages of plant-based milk. The demand for plant-based milk products will increase due to the implementation of efficient marketing tactics to raise consumer awareness of plant-based products and their health benefits.

Market Dynamics

Drivers

Primary factors driving market expansion are the rise in chronic lifestyle diseases and sensitivity to animal protein. The popularity of vegan eating habits globally is also encouraging industry growth. Due to greater consumer awareness of animal welfare and a rise in the number of lactose intolerant persons worldwide, there is a shift in people's preferences toward plant-based milk products. The majority of individuals in Asia and Africa, per the National Institute of Diabetes & Digestive and Kidney Diseases (NIDDK), are lactose intolerant. Northern Europe is one region where lactose intolerance is less prevalent. Lactose intolerance affects more than 35% of people in the US.

Restraints

Consumers' ignorance of plant-based beverages and concerns about beverage additives will restrict the plant-based milk market. 

Opportunity

Lactose intolerance is one of the most current market possibilities. The majority of the population globally is lactose intolerant, which offers new growth prospects for plant-based milk market. This population will always require a lactose-free alternative, which the plant-based milk industry can provide. Vegan milk is now readily accessible, according to recent studies from the Plant-Based Foods Association & Good Food Institute. Around 41% of American homes, according to data gathered in 2020, buy dairy-free or plant-based milk.

Market Segmentation

By product

On the basis of product, the plant-based milk market is segmented into hemp milk, pea milk, rice milk, wheat milk, almond milk, soy milk, coconut milk, and others. 

In the year 2022, the soy milk segment was the biggest market, with a revenue share of more than 58% due to its high protein content and significant consumer appeal. The desire for soy milk is driven by an increasing frequency of lactose intolerance and rising health awareness.

By Formulation

On the basis of formulation, the plant based milk market is segmented into flavored and unflavoured. 

The unflavored segment held the biggest market share for plant-based milk in 2022. This is due to the rising consumer desire for naturally dairy-free and sugar-free products, as well as the clean flavor and smooth texture qualities that work well with various food and beverage recipes. 

During the forecast period, the flavored segment will expand due to the rise in popularity of ready-to-drink beverages.

By End-Use

On the basis of product, the market is segmented into retail/household, food & beverage, and food service industry. 

The food and beverage segment was the biggest market, with a share of nearly 68% in 2021. The market for plant-based milk is being significantly impacted by the growing variety of foods that use various milk flavors that numerous food sectors have introduced. 

Regional Analysis 

Asia-Pacific was the largest regional market for plant based milk in 2022. The significant market share of this region is primarily attributable to greater health consciousness, higher adoption of technical improvements in the F&B industry, and a larger demographic base of vegans and vegetarians. During the forecast period, this region will grow at the fastest CAGR. The Western diet's rising popularity, the region's growing population, and more investment in the dairy substitutes industry are all major contributors to its rapid rise.

Key Players 

· Herbalife International of America, Inc. (U.S.)

· Bayer AG (Germany)

· Abbott (U.S.)

· DSM (Netherlands)

· Glanbia PLC (Ireland)

· Health Milk Manufacturers' Association (U.K.)

· Mead Johnson and Company, LLC. (U.S.)

· Premier Nutrition Corporation (U.S.)

· U.S. Spice Mills, Inc. (U.S.)

· DuPont. (U.S.)

· Amway (United States.)

· The Nature's Bounty Company (U.S.)

· Nestlé SA (Switzerland)

In 2021, the plant based milk market was USD 35 billion, and by 2030, it will reach USD 123.1 billion, growing at a 15% CAGR during the forecast period. The plant based milk market is expanding rapidly due to the rising consumer preference towards vegan food & beverage.

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