Study: Plant-based beverages market to experience rapid growth
The dairy alternatives market is growing at the highest CAGR, making it the most attractive category for plant-based beverage manufacturers.
The global plant-based beverages market is estimated to reach $474,666.1 million by 2028, with a CAGR of 6.7% during 2018-2028, revised from the previous CAGR of 5.2%, according to research released by Future Market Insights, Valley Cottage, N.Y.
The study, “Plant-based Beverages Market: Global Industry Analysis 2013-2017 and Opportunity Assessment 2018-2028,” reveals the market for plant-based beverages is anticipated to increase over the forecast year, owing to the increasing health and wellness consciousness among the population, the growing vegan/vegetarian/flexitarian trend and the rise in dietary restrictions, such as lactose intolerance and food-related allergies.
The global plant-based beverages market was segmented based on dairy alternatives, ready-to-drink drinks and plant-based juices. Among the three categories of plant-based beverages, the dairy alternatives market is growing at the highest CAGR, making it the most attractive category for plant-based beverage manufacturers. Shifting consumer preferences for natural and healthy products have fueled the adoption of plant-based beverages in the food and beverage industry.
The plant-based beverages market witnesses a significant contribution from dairy alternatives like almond milk, soy milk, coconut milk, rice milk, oats milk, seed milk and cashew milk, which is expected to reach $25,779.8 million by 2028. Increasing consumer inclination toward non-dairy plant-based beverages results from the growing prevalence of lactose intolerance and various food allergies associated with dairy products.
Organic plant-based beverages are anticipated to overtake conventional plant-based beverages, with an expected CAGR of 7.2% by 2028, owing to the increase in quality and health benefits related to organic food products, as well as a rise in per capita disposable income of consumers.
Western Europe, North America and APEJ (Asia Pacific excluding Japan), together, constitute more than 79.5% of the market share for plant-based beverages. Currently, APEJ is the largest market in terms of size, and is expected to dominate through the forecast period. However, APEJ will emerge as the most vibrant market in terms of absolute increment, just behind North America. Manufacturers are targeting the emerging economies of APEJ and MEA (Middle-East & Africa), as these are relatively under-penetrated markets.
The need for plant-based beverages is increasing, as they provide a healthier and natural alternative to their animal-based counterparts. Plus, manufacturers of plant-based beverages are offering new and innovative flavors and ingredients such as plant-based coffee, flavored plant-based milk and blends of fruit and vegetable juices.