products
in 2017
products
in 2019
152
319
– Euromonitor, Food Intolerance reports
Sales of "free-from" foods are expected to grow 15%, or $1.4 billion, between 2017 and 2022 — with the U.S. as the largest global growth market.
Got Alt? Emergence of the alt-dairy era
The creamy refreshing taste of dairy milk, whether a tall cold glass or the frothy texture of steamed milk in a latte, used to be indulgences that few Americans would consider foregoing. But in what seems like a heartbeat, the dairy industry has seen U.S. consumers embrace plant-based alternative dairy products in record numbers.
It all started with alternative milk. A report from Packaged Facts suggests that we passed the point of no return in 2018 as usage of plant-based milks topped 30%, and since then, the trajectory has continued upwards with the plant-based milk category reaching $2 billion in 2019 and making up 14% of the entire milk category. While the pivot point may have been Silk brand soy milk offered in the refrigerated dairy case, alternative milks have now progressed well beyond soy to products made with almonds, coconut, cashews, rice and oats.
The acceptance of alternative milks opened the door for a plethora of additional alternative dairy products including cheese, creamers, condiments, ice cream, yogurt and spreads, all of which are showing phenomenal market growth according to data from the Plant Based Foods Association (PBFA):
CLEAN LABEL TREND SPOTLIGHT
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No going back
The reasons behind the shift from dairy to plant-based are varied. It began with consumers citing dairy avoidance because of issues like allergies or lactose intolerance, but the trend has evolved to encompass those noting concerns about the environmental impact of dairy, animal compassion and an overall perception that plant-based dairy products are simply healthier.
None of this seems to be a passing fad. As consumers become more nutritionally savvy they are increasingly aware that a dairy-free, or at least a dairy-reduced lifestyle, may be better for long-term health. New research has certainly linked a dairy-free diet to benefits associated with health, such as better digestion, improved respiratory function, clear skin and less oxidative stress.
Not surprisingly, U.S. consumers now attribute a broad range of benefits to plant-based products versus animal-based foods and beverages.
What’s more, consumers report they intend to keep to their newfound eating style. Data from HealthFocus International suggests that nearly 60% of American shoppers see their current consumption levels of animal products, or the lack thereof, as permanent, or at least hope it will be.
While time will tell if changes in habits hold true, what is interesting to note is that consumers on the whole are not actually eschewing traditional dairy products altogether. What is different is that many now realize there is a need to include more plants/vegetables in their diet, and they view alternative dairy products as a way to increase plant intake. More than four in 10 U.S consumers say they now consume both traditional dairy and alternative dairy products.
But the picture isn’t completely rosy for alt-dairy. Americans, more often than not, do say they still prefer the taste of real dairy over alternatives. Plus their expectations for alternative products tend to be especially high – they expect these products to deliver the same experience as regular dairy and, because they presume dairy alternatives to be healthier, they are more likely to scrutinize product labels for sugar content and nutritional components like protein.
Ultimately, consumers expect their dairy products, whether alternative or not, to taste great – taste and texture are king. Consumer research indicates that sensory factors tend to be more important for dairy than many other food and beverage categories. It’s a fair assessment that the “alt” revolution in dairy may not have progressed as quickly or as far reaching had suppliers and manufacturers not made recent, significant strides in recreating flavor and texture expectations with alternative ingredients.
Continuing progress on this front portends a continued growth outlook. Consumers are now accepting a vast variety of new plant-based ingredients ranging from flax and hemp to peas in their dairy products, many of which are helping to further improve the taste and texture experience in expanding dairy categories. The only mystery may be what category will see disruption next.
For more ideas on sweetening for dairy and dairy alternatives read this short report.
1 Packaged Facts. Dairy Innovation: Culinary Trend Tracking Series. Nov. 2018
2 Plant Based Food Association (PBFA) commissioned data from SPINS for 52 weeks ending Dec. 2019.
3 Mattar R et al. Lactose intolerance. Diagnosis, genetic and clinical factors. Clinical Experimental Gastroenterology. 2012;5:113-121.
4 Bartley J et al. Does milk increase mucus production? Medical Hypothesis. 2010. April;74(4):732-734.
5 Danby FW. Nutrition and Acne. Clinics in Dermatology. Nov-Dec 2010. 28(6):598-604.
6 Michaelsson K et al. Milk intake and risk of mortality abd fracture in women and men. Cohort Studies. British Medical Journal. 2014: 349.
7 HealthFocus International. 2019 Wellness Game Changers for Tomorrow.
8 Cargill Proprietary Research Dairy Category. 2018.
9 Ibid.
10 Ibid.
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