Plant-Based Dairy Alternatives Gaining Ground on Traditional Dairy Beverages
The market for dairy and dairy alternative beverages will reach a projected $28 billion by 2021, according to market research firm Packaged Facts in the new report, "Dairy and Dairy Alternative Beverage Trends in the U.S., 4th Edition." Spurring the segment’s growth will be plant-based dairy alternatives, which are expected to come to represent 40% of the combined total of dairy and dairy alternative beverages, up from 25% in 2016 when dairy alternative beverages alone accounted for barely $6 billion in retail sales.
The shift away from traditional dairy products such as cow’s milk towards plant-based alternatives revolves around health concerns with a growing number of consumers coming to believe that plant-based foods are healthier than animal-based foods. Further, there is a growing consumer base that is motivated by animal welfare concerns, leading them to choose plant-based beverages, as well as other plant-based foods over animal-based products.