Plant-Based Foods are Flourishing as Mainstream
In July, the Plant Based Foods Association (PBFA) released new data showing “a dollar sales growth of 20% over the last year and sales topping three billion dollars.” Innova Market Insights (IMI) confirms the market trend, reporting a 62% global increase in plant-based product claims.
Plant-Based Foods are Flourishing as Mainstream
“The dairy alternatives market has been a particular beneficiary of this trend,” says Lu Ann Williams, IMI’s Director of Innovation. Over the past year, plant-based milk alternatives enjoyed 9% growth—expanding to 15% of total milk sales—while cow milk sales dipped by 6%. Almond, soy, and coconut led the way in the beverage category, representing 64%, 13%, and 12% of the market share respectively.
In the United States, non-dairy milk sales have grown 61% over the past five years, according to Mintel. Innova Market Insights projects 2018 global sales of dairy alternative drinks will reach US$16.3 billon.
“The increasing popularity of non-dairy milks can be attributed to many factors,” explains Meagan Bridges, RD Nutrition Support Specialist at the University of Virginia Health System. “More and more people are consuming non-dairy alternatives, whether due to an allergy, lactose intolerance or adherence to a vegan/plant-based diet. Still others are concerned over saturated fat levels, hormone content, and antibiotic use in dairy cattle.”
Producers and suppliers are taking notice of the shift. At their October investors conference, Danone, one of the largest food and dairy companies on the planet, recognized “The world is changing, as the food revolution continues, a new generation of consumers with a new set of values are the driving force.”
Danone let investors know that it is committed to tripling its worldwide plant-based sales by 2025. In addition to focusing on the plant-based products they already offer, Danone Manifesto Ventures, the company’s venture capital arm is actively investing in startups that focus on producing plant-based products, like Harmless Harvest coconut water.
Danone’s pledge to investors demonstrates that they view plant-based products as more than a niche market. Danone’s EVP of Essential Dairy and Plant-Based Products, Francisco Camacho, titled his investor presentation “Taking Plant-based to the Max,” a clear description of Danone’s approach to future growth.
It’s not just beverages that are showing future promise. Nielsen reports that non-beverage dairy alternatives are up 50% from August 2017 to June 2018. This includes 24% growth of plant-based meats, 43% growth of plant-based cheeses, and 55% growth of plant-based yogurts. Plant-based creamers topped the charts with 131% growth.
The new data confirms what we are hearing and seeing every day from our members,” says Michele Simon, Executive Director of the Plant Based Foods Association, “sales are up, investment is increasing, and new jobs are being created in the plant-based foods industry.”
As plant-based products find a spot in the shopping carts of more and more mainstream consumers, “The plant-based foods industry has gone from being a relatively niche market to fully mainstream,” Simon concludes.