PLANT BASED DAIRY ALTERNATIVES
The clientele
Millennials and Generation Z are
driving the consumption of plant
based drinks. These demographics
are more sensitive to animal
welfare and the environmental
impact of their food and drink
choices. Adults from Generation X
and baby boomers are also purchasing
plant based drinks but in
lesser quantities.
Zenith Global‘s research has
shown that several factors are
influencing consumers when purchasing
plant based drinks namely
flavour (52%), price (40%) and
health claims (37%). Convenience
is also an important factor.
Although plant based drinks
brands generally target younger
consumers, some brands such as
Oatly are marketing their products
to people over 50 years old. The
company has recently launched
a new range of plant based nutritional
beverages targeting this
overlooked demographic segment.
The line features a proprietary
blend of plant proteins, vitamins,
minerals and fibres which are “tailored
to fuel, body and brain over
50“. The different marketing approach
enables Oatly to differentiate
itself from the competition and
target a new consumer segment.
The popularity of plant based
drinks has been boosted by the
ongoing health and wellness
trend. In addition to vegan and
lactose intolerants, consumers
who do not necessarily suffer
from allergy or intolerance have
also increasingly purchased plant
based drinks. This audience usually
perceives plant based drinks
as healthy and are keen on trying
new beverages. Other drivers include
environmental concerns and
animal welfare.
Plant based drinks are consumed
in a variety of ways including
on their own, for breakfast,
and they are used as an ingredient
in beverages such as juice,
smoothies, coffee and hot chocolate.
Next 5 years
The US plant based market is forecast
to enjoy steady growth over the
next five years growing at a rate
of 7% between 2018 and 2019. By
2023 sales of plant based drinks
are projected to reach over 1.58 billion
litres compared to 1.16 billion
litres in 2018 a CAGR of 6.4%. The
growth will continue to be led by the
health and wellness trend. Whilst
almond drinks is likely to remain the
most popular type within the plant
based drink category, oat drink is
expected to gain additional momentum
while soy drink will continue to
lose popularity. Oat drink is said to
more environmentally sustainable
as its production requires less water
and GMO. Plant based drinks made
using peas is also a trend to watch
being high protein and similarly to
oat using a lesser amount of water
compared to nut based drinks.
The growth of plant based drink
will be fueled by companies’ continuous
investments as dairy players
see it as a new avenue of growth.
22 · September 2020 ¦ international-dairy.com
/international-dairy.com
