Global Alternative Plant Beverages Market

MARKET SCOPE:

The global alternative plant beverages market is projected to grow significantly, registering a CAGR of 11.8% during the forecast period (2024 – 2032).

The Alternative Plant Beverages Market is witnessing significant growth as consumers increasingly seek plant-based alternatives to traditional beverages. This market encompasses a diverse range of plant-derived options, including almond, soy, coconut, rice, oats, and various others, catering to the evolving preferences of health-conscious and environmentally aware consumers.

Consumers are embracing plant-based beverages due to various factors such as lactose intolerance, dietary preferences, and concerns about sustainability. Almond, soy, coconut, rice, and oats serve as key players in this market, offering a variety of flavors and nutritional profiles. These alternatives find application in various sectors, including direct consumption, confectionery, bakery, ice cream, cheese, and more.

MARKET OVERVIEW:

Driver: Increasing consumer shift towards plant-based beverages is driving the market growth.

The global alternative plant beverages market is propelled by the increasing consumer shift towards plant-based diets and a rising awareness of health and sustainability. One of the primary drivers is the growing demand for dairy-free alternatives, driven by factors such as lactose intolerance, ethical considerations, and health-conscious lifestyles. Consumers are actively seeking beverages that align with their values, including environmental sustainability and animal welfare. Plant-based beverages, such as almond, soy, and coconut milk, offer viable alternatives, contributing to the market's expansion. The surge in popularity of these alternatives is further fueled by their nutritional profiles, with many plant-based options providing essential nutrients without compromising on taste or texture. As health and environmental consciousness continue to rise, the demand for alternative plant beverages is expected to witness sustained growth.

Opportunities: Diversification of product offerings are expected to pave the way for market growth in the upcoming years.

An emerging opportunity in the alternative plant beverages market lies in the diversification of product offerings to cater to evolving consumer preferences. There is a growing demand for specialty plant-based beverages, including those with organic, non-GMO, and fortified attributes. Manufacturers have the opportunity to innovate and introduce products that address specific consumer needs, such as beverages enriched with vitamins, minerals, or other functional ingredients. Additionally, expanding the range of plant bases beyond common options like almond and soy, incorporating ingredients like hemp, flaxseed, or quinoa, provides opportunities to tap into niche markets. The rise of the flexitarian consumer, who seeks plant-based options without fully committing to a vegan lifestyle, presents another avenue for market growth. Proactive marketing strategies emphasizing the health benefits, sustainable practices, and unique flavor profiles of alternative plant beverages can enhance their market penetration.

COVID IMPACT:

The COVID-19 pandemic has influenced the alternative plant beverages market through changes in consumer behavior and purchasing patterns. As the pandemic unfolded, there was a notable surge in health-conscious consumer choices, contributing to increased interest in plant-based and immunity-boosting products. While supply chain disruptions initially posed challenges, the adaptability of the industry helped overcome obstacles. The pandemic accelerated certain trends, such as the rise of e-commerce for purchasing groceries and the emphasis on health and wellness. Plant-based beverages, perceived as a healthier option, witnessed a spike in demand as consumers sought products that aligned with their well-being goals. The pandemic underscored the importance of resilient and sustainable food systems, driving further interest in plant-based alternatives. Overall, the COVID-19 impact reinforced the relevance of alternative plant beverages in the evolving landscape of consumer preferences and priorities.

SEGMENTATION ANALYSIS:

The segmentation by type is anticipated to grow significantly during the forecast period.

Almond-based plant beverages have emerged as a popular choice due to their rich, nutty flavor profile and accompanying nutritional benefits. This variant is particularly favored by consumers seeking alternatives to traditional dairy, especially those with lactose intolerance. Soy-based beverages occupy a well-established position in the market, known for their versatility and high protein content. Soy milk, in particular, stands out as a widely consumed option, providing essential nutrients and serving as a valuable source of plant-based protein. The allure of coconut-based plant beverages lies in their distinct tropical flavor, making them a sought-after choice in both sweet and savory applications. Coconut milk and coconut water have become go-to alternatives for consumers exploring dairy-free options. Rice-based beverages offer a lighter and milder taste, making them a suitable option for individuals with nut allergies. Widely used in various culinary preparations, rice-based plant beverages contribute to the diverse landscape of non-dairy alternatives.

Oat-based plant beverages have gained popularity for their creamy texture and perceived health benefits, particularly related to heart health. Consumers appreciate oats as a wholesome and plant-based alternative. Others category encompasses a variety of plant-based alternatives, including hemp, flaxseed, quinoa, and more. These alternatives cater to niche markets and consumers seeking unique flavor profiles beyond the mainstream options. Plant-based beverages in the ""Direct Drink"" category serve as refreshing alternatives consumed directly. They provide a convenient and enjoyable option for those looking to replace traditional dairy-based drinks. Plant-based beverages find application in the production of confectionery products such as chocolates, candies, and other sweet treats. This application showcases the versatility of plant-based ingredients in the realm of indulgent desserts. Plant-based ingredients play a crucial role in bakery applications, contributing to the production of cakes, cookies, and bread. These alternatives offer a dairy-free choice for individuals seeking plant-based options in baked goods.

The popularity of plant-based ice cream has soared as a vegan-friendly and dairy-free alternative. Catering to consumers with dietary restrictions, plant-based ice cream has become a staple in the frozen desserts market. Plant-based alternatives are utilized in the production of dairy-free cheeses, meeting the demands of individuals following a vegan or lactose-free diet. This application demonstrates the expanding range of plant-based options in the cheese category. Others category encompasses diverse applications, including the use of plant-based beverages in cooking, smoothies, and various culinary creations. The versatility of plant-based beverages extends beyond traditional categories, showcasing their adaptability in different culinary scenarios.

REGIONAL ANALYSIS:

The Asia Pacific region is set to witness significant growth during the forecast period.

China, as the most populous country in the world, is poised to dominate the Asia Pacific Plant-based Beverage Market. The sheer size of its population contributes significantly to the overall consumption patterns and trends in the region. The market dynamics in China are shaped by a combination of factors, including changing consumer preferences, increasing health consciousness, and a growing awareness of sustainability. The rising health-conscious population in China is a key driver of the plant-based beverage market. As consumers become more informed about the health benefits associated with plant-based diets, there is a noticeable shift away from traditional dairy products towards plant-derived alternatives. Factors such as lactose intolerance and dietary choices are prompting Chinese consumers to explore plant-based options, including beverages made from soy, almond, coconut, and other plant sources.

Moreover, the Chinese market is witnessing a surge in environmental awareness. Consumers are increasingly concerned about the ecological impact of food production, and plant-based beverages align with sustainable and eco-friendly practices. The demand for products perceived as more sustainable and ethically produced is influencing purchasing decisions, contributing to the growth of the plant-based beverage market.

COMPETITIVE ANALYSIS

The global Alternative Plant Beverages market is reasonably competitive with mergers, acquisitions, and application launches. See some of the major key players in the market.

Danone

• On January 2, 2024, Danone declared the signing of an agreement for the divestiture of its premium organic dairy operations in the U.S. to Platinum Equity, a U.S.-based investment firm. This strategic move is aligned with Danone's portfolio review and asset rotation initiative, a component of its Renew Danone strategy announced in March 2022. The premium organic dairy segment in the U.S., encompassing the Horizon Organic and Wallaby businesses, represented around 3% of Danone's global revenues in 2022. The divestiture is aimed at optimizing Danone's portfolio and addressing the dilutive impact of the U.S. premium organic dairy activity on like-for-like sales growth and recurring operating margin. As part of the agreement, Danone will retain a non-consolidated minority stake in the divested business. This signifies a strategic decision to maintain a strategic interest in the premium organic dairy segment, albeit in a reduced capacity.

Blue Diamond Growers

• Delivering the world’s highest quality almond products to over 90 countries, Blue Diamond has deep expertise in all aspects of farming, product development and applications, trends, innovation, food safety and thought leadership.

Oatly

Kikkoman Corporation

Califia Farms

Earth's Own Food Company

Ezaki Glico

Ripple Foods

Marusan-Ai Co. Ltd

Campbell Soup Company

SunOpta

Nutrisoya Foods

Elmhurst Milked Direct

Panos Brands

Jindilli Beverages (milkadamia)

Hebei Yangyuan Zhihui

He Bei Cheng De Lolo

Coconut Palm Group

V V Food and Beverage

Vitasoy International Holdings

Scope of the Report

By Type

Almond

Soy

Coconut

Rice

Oats

Others

By Application

Direct Drink

Confectionery

Bakery

Ice Cream

Cheese

Others

By Region

North America (the United States & Canada)

Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)

Asia Pacific (China, Japan, India, and Rest of Asia Pacific)

Rest of the World (the Middle East & Africa, Latin America, and Rest of The World)

Keys reasons to purchasing this report

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Alternative Plant Beverages Market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Alternative Plant Beverages submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.