Global Non-Dairy Beverages Market Trends 2020 Industry Insight Industry Insight

GLOBAL NON-DAIRY BEVERAGES MARKET TRENDS 2020 INDUSTRY INSIGHT INDUSTRY INSIGHT

Market Overview

• Global Dairy Alternative Products Market is forecasted to reach USD 23.35 billion growing at a CAGR1 of 9.85% during the forecast period (2019 - 2024). • Rising consumer demand on nutritional values offered by dairy substitutes is likely to have a positive impact on the non-dairy beverage market. • The dairy alternatives market is growing due to an increase in consumer health consciousness, growing lactose intolerance, and consumer preference for a vegan diet.

1Compound Annual Growth Rate Source: Mordor Intelligence, 2019 INDUSTRY INSIGHT

Asia-Pacific to Dominate the Global Market

• Asia-Pacific was the largest geographical segment of the market studied. • The rise of health and wellness trend in Asia-Pacific has convey the issue of food intolerances and allergies to the forefront of modern consumers’ minds, boosting the consumption of dairy alternative products. • Consumers of plant-based protein in Asia-Pacific have adopted a dairy-free diet to improve their health and well-being, as plant-based diets can not only help curb obesity, stroke, and heart disease, prevent a variety of cancers, reduce cholesterol and arthritis pain, but also lower blood sugar, and increase energy and mental clarity.

Source: Mordor Intelligence, 2019 INDUSTRY INSIGHT

Dairy Alternative Products Market: Growth Rate, by Region, Global, 2019 – 2024

Source: Mordor Intelligence, 2019 MARKET SEGMENTATION BY TYPES MARKET SEGMENTATION BY TYPES

Non-Dairy Beverages By types Dairy free beverages include • Soy milk, almond milk, coconut milk, rice milk, and other types The other beverages include • Cashew milk, pea milk, oat milk, hemp milk

Source: Mordor Intelligence, 2019 KEY MARKET TRENDS KEY MARKET TRENDS

Sustainability More than just unique nutritional profile

• Each variety of non-dairy milk offers a distinctive nutritional profile, along with a wide range of values for protein, carbohydrates, healthy fats, vitamins and minerals. • More importantly, other than nutritional profile, words like “sustainable”, “green”, and “eco” even leafy packaging or other marketing materials tend to bombard attentions of consumers every single day. • With advertising messages, this could drives the consumption of dairy alternatives in the market, which are usually being positioned as sustainable products across the retail shelves.

Source: Mordor Intelligence, 2019 KEY MARKET TRENDS

Plant-based

• The most vital factor associated with the increased popularity of plant-based milk is its production process, that is free of animal cruelty. • Moreover, plants are less expensive to grow - plants such as hemp, flex, cashew, almond, and soy used to produce milk require less manpower, less maintenance, water, and space. • On the other hand, non-dairy milks provide hormones and antibiotic-free products, which has been helping health-conscious people maintain their diet preferences. • The changing consumer lifestyles owing to the growing health concerns among people about diabetes and obesity are thus slated to enhance plant milk market size.

Source: New Nutrition Business, 2019; Market Watch, 2019b KEY MARKET TRENDS

Healthier Diets: Natural and Organic • The modern generation is becoming more interested in pursuing a healthy lifestyle. • The increasing focus on health concerns such as cholesterol, weight management, chronic heart diseases, and others is fueling the adoption of dairy-free products in the APAC market. • Natural and organic food is driving the need for dairy-free products in the North American market.

Source: Report Buyer, 2019 KEY MARKET TRENDS

Focus on Nutritional Values Low calories, high proteins & vitamins • Rising consumer focus on nutritional values such as low calories, contains no artificial ingredients, and protein-rich and vitamins offered by milk substitutes or dairy analogs are likely to have a positive impact on the market. • These products can be fortified with vitamin D, calcium, and DHA, which supplements their nutritional values. • Increasing consumer knowledge about milk analogs is anticipated to fuel market growth.

Source: Grand View Research, 2019 KEY MARKET TRENDS

Plain and Unsweetened

• The plain unsweetened formulation is anticipated to dominate the market due to the growing demand for unsweetened food items. • The plain formulation is expected to have a growth of 12.2% during the forecast period accounting for more than 70% of the market in 2018. • Rising demand for the plain/unflavoured type of dairy alternatives like soy milk, almond milk, and rice milk among others is estimated to fuel the market growth.

Source: Reports and Data, 2019; Market Watch, 2019a MARKET EXAMPLES MARKET EXAMPLES

Sustainability

So Delicious Dairy-Free Organic Blue Diamond Vegan Almond Milk Unsweetened Almond Cashew Milk Vanilla Flavour MARKET EXAMPLES

Sustainability

Silk Organic Unsweetened Soymilk Silk OAT YEAH Oat Milk MARKET EXAMPLES

Sustainability

Pacific Foods Organic Select Soy Elmhurst Unsweetened Vanilla Flavour Almond Milk MARKET EXAMPLES

Plant-based

Living Harvest Unsweetened Original Hemp Milk An Excellent Source of Omega 3+6, Calcium, Vitamin B12 & Vitamin D Gluten Free, Soy Free, Non-GMO Ingredients: Hemp Nut Base [Filtered Water, Hemp Nut (Shelled Hemp Seed)], Vanilla Extract, Sunflower Lecithin, Tri-Calcium Phosphate, Gellan Gum, Sea Salt, Vitamin A Palmitate, Vitamin D2, Riboflavin, Vitamin B12. MARKET EXAMPLES

Plant-based

Rude Health Tiger Nut Drink Gluten Free, Without Thickeners, Dairy Free, No Added Sugar Ingredients: Spring Water, Organic Rice, Organic Tiger Nuts (6%), Sea Salt. MARKET EXAMPLES

Plant-based

Mariani Walnut Milk 50% More Calcium than Typical Dairy Milk 45 Calories Per 8oz Serving Walnuts are a significant source of ALA, a plant- based omega-3 fatty acid that has been found to benefit heart health. Ingredients for Original Flavour: Walnut Milk (Water, Walnuts), Cane Sugar, Contains 1% or less of the following: Calcium Carbonate, Tapioca Starch, Sea Salt, Sunflower Lecithin (an Emulsifier), Dipotassium Phosphate, Natural Flavour, Gellan Gum, Organic Locust Bean Gum, Vitamin Blend (dl-Alpha-Tocopheryl Acetate, Ergocalciferol, Vitamin A Palmitate), Almond Butter (Almonds). Varieties: Original, Unsweetened and Vanilla MARKET EXAMPLES

Plant-based

So Delicious Dairy Free Unsweetened Cashew Milk Certified Vegan Non-GMO Project Verified No Artificial Flavours, Colours, or Sweeteners Cholesterol Free Ingredients: Cashew Milk (Water, Cashews), Non- GMO Canola Oil, Calcium Phosphate, Magnesium Phosphate, Locust Bean Gum, Gellan Gum, Guar Gum, Vitamin A Acetate, Sea Salt, Vitamin D-2, L- Selenomethionine (Selenium), Zinc Oxide, Folic Acid, Vitamin B-12. MARKET EXAMPLES

Plant-based

OATH Organic Oat Milk with Almond and/or Pumpkin Seed Protein Organic Vegan Kosher Dairy-Free, Gluten-Free Non-GMO, No Gums, No Soy Ingredients: Oat Milk (Purified Water, Organic Oats), Natural Mixed Tocopherols, Organic Almond Protein, Organic Pumpkin Seed Protein, Organic Apple Extract, Organic Panela, Varieties: Indian Rose, Matcha Chai, Golden Organic Rose Water, Organic Vanilla Extract, Turmeric, Double Chocolate Organic Cardamom, Organic Fennel, Organic Cinnamon, Organic Black Pepper, Organic Nutmeg, Himalayan Pink Salt, Organic Saffron. MARKET EXAMPLES

Plant-based

Innocent Dairy Free Hazelnut Milk Naturally dairy & lactose free No additives, no stabilisers, no funny business A source of vitamin E Suitable for vegetarians & vegans Ingredients: Roasted Hazelnuts, Spring Water, Rice and a touch of Sea Salt. MARKET EXAMPLES

Plant-based

Pacific Natural Rice Milk Vanilla Flavour A refreshing alternative to dairy, our rice beverage is naturally sweet with no added sugar. As great on its own as it is in recipes. Ingredients: Filtered Water, Brown Rice, Expeller Pressed Canola Oil, Natural Vanilla Flavour with other Natural Flavours, Tricalcium Phosphate, Sea Salt, Guar Gum, Xanthan Gum, Carob Bean Gum, Carrageenan, Vitamin A Palmitate, Vitamin D2. MARKET EXAMPLES

Plant-based

Ripple Nutritious Pea Milk Ingredients for Original Flavour: Water, Ripptein® (Water, Pea Protein), Cane Sugar, Sunflower Oil, Contains less than 1% of Vitamin A Palmitate, Vitamin D2, Vitamin B12, Tricalcium Phosphate, Dipotassium Phosphate, Sunflower Lecithin, Natural Flavour, Sea Salt, Guar Gum, Gellan Gum.

Varieties: Original, Unsweetened Original, Vanilla, Unsweetened Vanilla, Chocolate MARKET EXAMPLES