New research shows scale of milk alternative acceleration
According to the research, soy drinks are losing ground due to poor perception of the ingredient by consumers, however other non-dairy-based milk substitutes, such as almonds, oats, coconuts, and peas, have spurred innovation with the UK market growing by 69%, and non-soya-based milks increasing by 130% over the past five years.
“The plant-based and lab-grown dairy space has hugely accelerated in the last year, thanks to heavy investments, including investment banks ‘pouring money’ into the industry,” said Maria Mascaraque, industry manager at Euromonitor International.
“And this is likely to speed up more acutely with the entry of big consumer companies, such as Nestlé and Danone, who are investing in start-ups that are ahead of the game.”
The research company said the pandemic has intensified the focus on health and wellness in 2020, as the additional risk posed by obesity and other health conditions with Covid-19, made diet a focal point for many people.
“In the next couple of years, the focus is likely to remain on exploring further ingredients such as peas, chickpeas, and fava beans, due to their high protein level, and companies increasingly relying on blends to make them tastier, for example combining peas with oats or coconut. Further down the line, new ingredients in that space are expected to spur, including water lentils or even algae,” Mascaraque said.
Euromonitor International predicts lab-grown dairy will be more affordable in the next five years and could possibly become the most popular choice in 10 years.