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Email: [email protected] MarketResearch.com DAIRY ALTERNATIVE (BEVERAGE) MARKET BY TYPE (Soy, Almond, Rice), FORMULATION (Plain, Flavored, Sweetened, Unsweetened), CHANNEL (Supermarket, Health Store, Pharmacy, Convenience Store) & Geography — Global Trends & Forecast to 2018
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Dairy Alternative (Beverage) Market – By Type, Formulation, Channel & Geography
— Global Trends & Forecast to 2018
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MarketsandMarkets Sample Page 2 Dairy Alternative (Beverage) Market – By Type, Formulation, Channel & Geography
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1 EXECUTIVE SUMMARY
As a substitute to cow milk, the ‘milk’ derived from plants is considered as a dairy alternative. The dairy alternatives market has witnessed a significant growth in the last couple of years, due to a decline in cow milk consumption. Cow milk consumption has been declining due to an increased number of lactose intolerance consumers and dairy allergies reported by consumers.
The dairy alternative beverage market has been segmented by types such as soy, almond, rice, and others i.e. coconut milk, hemp milk, hazelnut milk, oat milk, etc. It is further segmented on the basis of formulations such as plain-sweetened, plain-unsweetened, flavored- sweetened, flavored-unsweetened, and others that include low calorie, fortified, etc. The market has also been divided on the basis of sales channels such as supermarket, health food store, pharmacy, convenience stores, and others that include e-retailers, direct sales, etc.; and on the basis of geography such as North America, Europe, Asia-Pacific, and Rest of the World (ROW).
FIGURE 1
DAIRY ALTERNATIVE BEVERAGE MARKET VALUE SHARE, BY REGION, 2012
XX%
XX% As
XX% No
Eu
RO
XX%
Source: MarketsandMarkets Analysis
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2 PREMIUM INSIGHTS
FIGURE 2
DAIRY ALTERNATIVE BEVERAGE SEGMENTATION
Global Dairy Alternative Beverages Market
Types Formulations Sales Channels Geography
Soy Milk Plain-Sweetened Supermarket North America
Almond Milk Plain-Unsweetened Health Food Stores Europe
Rice Milk Flavored-Sweetened Pharmacy Asia-Pacific
Others* Flavored-Unsweetened Convenience Store ROW
Others** Others***
Others* : Coconut milk, hazelnut milk, hemp milk, etc. Others** : Low calorie, fortified, ‘free-from’, etc. Others*** : E-retailers, direct sales, etc.
Source: MarketsandMarkets Analysis
The dairy alternative beverage market was segmented based on types, formulations, sales channel types, and geography. The types of dairy alternative beverages include soy milk, almond milk, rice milk, and others such as oat milk, coconut milk, etc. The formulations of the market is sub-segmented into plain-sweetened, plain-unsweetened, flavored-sweetened, flavored-unsweetened, and others such as fortified dairy alternatives, ‘free-from’ labeled products, etc. Dairy alternatives are available through various sales channels that include supermarket, health food satores, pharmacy, convenience stores, and others such as e-
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retailers, direct sales, etc. The market was also segmented on the basis of geography such as North America, Europe, Asia-Pacific, and Rest of the World (ROW).
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3 INDUSTRY ANALYSIS
3.1 SUPPLY CHAIN ANALYSIS
FIGURE 3
DAIRY ALTERNATIVE BEVERAGE: SUPPLY CHAIN ANALYSIS
Dairy alternative Beverage Packaging Distribution
Dairy Alternative Beverage Processing Retail
Consumer
Transport of Raw Material
Cereal & Nut Cultivation
Source: USDA, Progressive Grocer, and MarketsandMarkets Analysis
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The dairy alternative beverages industry includes farmers, associations, etc. as their suppliers. The suppliers provide F&B processors with raw materials such as cereals and nuts to process and extract milk. The processing and extraction of dairy alternative milk is followed by its packaging. The F&B manufacturers usually have an agreement or partnership with packagers, co-packers, transporters, logistics, for the proper storage and distribution of the products. The dairy alternative beverages are available in refrigerated packaging as well as non-storage packs in the retail outlets. These products are available through different sales channels such as supermarket, health food stores, pharmacy, etc.
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4 MARKET OVERVIEW
4.1 WINNING IMPERATIVE
4.1.1 PRODUCT PROMOTION
Companies utilize natural and organic label to promote their products and be identified amongst the others. Most of the promotional strategy includes advertising in distribution catalogs and cooperative advertising. An appropriate combination of media to generate awareness influences the market growth.
The companies achieve enhancement of brand equity and increased sales through the correct way of promotion. A consumer-relationship program serves to be another criterion to sustain in the market. This eventually impels the growth of the product, brand, and company. Provision of sponsorships and participation of events improves brand recognition. Considerable growth has been observed after the adoption of these promoting aspects.
4.2 BURNING ISSUE
4.2.1 ADDED ADDITIVES
The market for dairy alternatives such as almond milk, rice milk, soy milk, etc. has been increasing as it satisfies the requirements of the lactose intolerant, vegans, milk allergic individuals, and healthy diet followers.
Although dairy alternatives have several nutritional benefits, they have additional additives such as carrageenan, gums, thickening agents, etc., that provides a creamy texture to the product. The presence of these hydrocolloids reduces ingestion and may cause gastrointestinal problems. The Joint Expert Committee on Food Additives (JECFA) considers Food-grade carrageenan to be safer as it passes through without digestion, but the non-food grade carrageenan has been considered carcinogenic by the World Health Organization’s International Agency. Addition of carrageenan in dairy alternative beverages also created a
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controversy in the market due to a few consumers’ myths towards the unhealthy output of carrageenan consumption.
4.3 IMPACT ANALYSIS
FIGURE 4
IMPACT ANALYSIS OF THE DAIRY ALTERNATIVE BEVERAGE MARKET
XX Medium Growth Impact High Growth Impact XX XX XX XX
XX XX XX
XX
XX Low Growth Impact
XX XX XX XX XX
Source: MarketsandMarkets Analysis
The different health benefits of dairy alternative have highly impacted their sales globally. This driver has shown a high growth impact on the market. Intolerance of lactose and milk allergy has been the second most influencing driver of this market. Better diagnosis and consumer education denotes a huge opportunity to this market. Also, marketing and positioning the product in the market impacts the growth of the company to a certain extent.
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4.3.1 DRIVERS
4.3.1.1 Health Benefits Drives The Plant-Based Beverage Market
Companies market their products on the health platform that has helped change the consumers’ perception and has accelerated the sales. Nutritional benefits of plant-based dairy alternatives have enhanced their consumption.
Soy milk has been majorly consumed, as it is a rich source of omega-3 fatty acids, protein, and fiber. Along with this, it contains isoflavones that have antiestrogenic and anticancer properties.
Almond milk is rich in calcium and vitamin E. This is why it has been recommended for both skin and bone health. Hemp milk possesses essential fatty acids such as omega fatty acid 3 and 6 that helps in the proper functioning of the heart and is vital in the development of infant health. Consumers go for coconut milk, as it contains lauric acid. The low carb and low fat variety of dairy alternatives helps reduce fat. The nutritional benefits have enhanced the growth of the dairy alternative beverage market.
4.3.1.2 Varieties of Choice
Dairy alternative manufacturers avail varieties of products in the market. Every variety has expanded their product line that includes sweetened, unsweetened, organic, flavor, fat-free, and numerous other varieties. They strive to meet the varied demands of consumers by cataloguing their products into different forms. Although dairy alternatives lack calcium, they are fortified with calcium to meet the absolute nutritional profile.
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FIGURE 5
VARIETIES OF DAIRY ALTERNATIVE BEVERAGES
Almond Milk Thick Texture Nutritious Cereal, Coffee, & Sipping Soy Milk Hazelnut Milk Strong Flavor High in Protein & & aroma Fat Creamy Texture Thin Texture Great Versatile in Coffee Dairy Alternative Beverage Rice Milk Oat Milk Plain, Sweet Flavor Thick & Grainy Watery Texture Perfect for Hearty Cereal, Smoothies Cookies Hemp Milk High in Omega Fats & Calcium Thick, Creamy Texture
Source: MarketsandMarkets analysis
Manufacturers also ponder on the product package size, and focus on offering their products as per the consumers’ convenience. These non-dairy alternatives are offered in cartons and aseptic packages, as the handiness of these products has increased their sales instantaneously. Due to this, the market has set a new horizon in the beverage industry, and it will achieve a significant growth than dairy milk.
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4.3.1.3 Vegan Diet
The vegan diet strongly supports animal rights. A number of the people perceive a vegan diet to be a healthy diet, and prefer consuming dairy alternatives such as soy milk, almond milk, etc. as a substitute for dairy milk. Vegan diet followers and healthy diet adopters have been one of the major consumers of dairy alternative, and have encouraged market growth.
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5 DAIRY ALTERNATIVE BEVERAGE MARKET,
BY TYPES
5.1 INTRODUCTION
The market for plant-based dairy alternative beverage that is free of animal proteins, has witnessed a significant growth in the last couple of years, due to a decline in cow milk consumption. Consumption of cow milk has been declining due to an increased number of lactose intolerance and dairy allergies reported by consumers. Other consumers of dairy alternative milk include vegans, health conscious population, etc.
Retail shelves generally showcase soy milk, rice milk, almond milk, and coconut milk. Other varieties of plant milk such as sunflower milk, hemp milk, oat milk, etc. have the potential to impact the market growth in future. A few of the plant-based milk are consumed as a traditional beverage and are easily available commercially in countries other than the U.S. This plant-based milk is presumed to be introduced in U.S. as well as other new markets because of their impact on consumer health and awareness, along with the globalization. Lactose intolerant and dairy allergic consumers have withdrawn their consumption of milk from their diet and prefer consuming dairy alternative milk.
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FIGURE 6
ESTIMATED DIETARY COMPOSITION OF DAIRY ALTERNATIVE MILK
XX XX XX XX XX XX XX XX
Estimated % % Composition Estimated XX XX Recommended Cow Milk Soy Milk Oat Milk Rice Milk Dietary Composition Protein Fat Carbohydrates
Source: Dairy Council and MarketsandMarkets Analysis
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6 DAIRY ALTERNATIVE BEVERAGE MARKET,
BY FORMULATIONS
6.1 INTRODUCTION
Dairy alternative beverages are consumed by the dairy intolerant population. The only treatment for this sect of the population is to consume dairy-free products. Thus, the market for dairy alternative beverages has been driven by dairy-intolerant consumers. Plant-based dairy alternatives have the advantage of low-fat and low-cholesterol that appeals to the health conscious as well as vegan population. Thus, the market is projected to grow rapidly with increasing consumer awareness on the benefits of dairy-alternative beverages derived from plants.
Research indicates that about XX% of the population has contracted this health condition. Consumers thus prefer the consumption of dairy alternative beverages. The increasing ratio of the diabetic population has led to changing dietary preferences among people. The plain dairy alternative beverages are preferred by lactose intolerant population, while the flavored products are preferred by children and the vegan population. The other formulations include dairy alternative beverages fortified with essential nutrients, and products that are labeled as calorie-free, fat-free, etc.
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FIGURE 7
DAIRY ALTERNATIVE BEVERAGE MARKET VALUE SHARE, BY FORMULATION, 2012
XX% Pl XX% Pl XX% Fl
Fl
Ot XX% XX%
Source: MarketsandMarkets Analysis
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7 DAIRY ALTERNATIVE BEVERAGE MARKET,
BY CHANNEL TYPES
7.1 INTRODUCTION
Plant-based dairy alternative beverages are a regular dietary drink for vegans and consumers with certain health conditions such as dairy intolerance, high cholesterol, obesity, etc. These beverages are widely available in the market through different sales channels such as supermarkets, health food stores, pharmacy, etc. The sales channels carry dairy alternative beverages in both refrigerated and non-refrigerated varieties.
FIGURE 8
DAIRY ALTERNATIVE BEVERAGE MARKET VALUE, BY CHANNEL TYPE, 2012–2018 ($MILLION)
25.0 XX 20.0 XX XX XX 2018)
15.0–
10.0 XX
5.0 CAGR (2013 %
0.0 0 500 1,000 1,500 2,000 2,500 3,000 3,50 Market Value, 2012 ($Million) *Bubble Size Indicates Market Value, 2018 ($Million)
Source: MarketsandMarkets Analysis
The increasing demand for dairy alternatives has enabled marketers to offer products through different sales channels. Supermarkets dominated the market value as well as volume of dairy
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alternative beverages in 2012. The availability of dairy alternatives as specialty health food for consumers who suffer from high cholesterol, obesity, etc. is estimated to drive the market for health food stores.
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8 DAIRY ALTERNATIVE BEVERAGE MARKET,
BY GEOGRAPHY
8.1 NORTH AMERICA: THE DAIRY ALTERNATIVE MARKET
In North America, about XX million people suffer from dairy intolerance. The number of supermarkets that sell dairy alternatives has increased in North America to meet the growing demand from consumers. North America has a large number of dairy alternative beverage companies. The companies introduce new varieties of dairy alternative beverages to satisfy consumer preferences.
In 2013, The Hain Celestial Group (U.S.) launched dairy alternative beverages with new flavors and product benefits to satisfy the growing demand for natural and organic products. The Hain Celestial brand ‘DREAM’ launched a new non-dairy sunflower drink, SUNFLOWER DREAM in 2012. In 2012, Turtle Mountain (U.S.) launched a new line of almond milk products with different flavors. In 2013, Blue Diamond Growers (U.S.) expanded their facilities to meet the increasing demand for almond milk.
Soy milk has the largest market for dairy alternative beverages in North America, but faces intense competition from other dairy alternative beverages such as almond milk, rice milk, etc. Rice, hazelnut, and hemp milk are also growing in the dairy alternative market as they have calcium content and other nutritional benefits similar to that of soy milk.
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9 COMPETITIVE LANDSCAPE
9.1 INTRODUCTION
9.1.1 DAIRY ALTERNATIVE MILK: A HIGHLY COMPETITIVE MARKET
FIGURE 9
DAIRY ALTERNATIVE MILK: COMPETITIVE DEVELOPMENTS, 2011-2013
12 XX XX 10
8
6 XX XX XX 4
2 of No. Developments
0 2009 2010 2011 2012 2013
Source: MarketsandMarkets Analysis
A total of XX developments were registered in the dairy alternative milk market from 2009 to 2013. The dairy alternative milk market has been growing. New product launches of several plant-based dairy alternative milk varieties such as almond milk, coconut milk, etc. have been increasing. In 2012, the number of developments increased from XX, to XX in 2013, and is projected to increase further.
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10 COMPANY PROFILES
10.1 THE WHITEWAVE FOODS COMPANY
10.1.1 OVERVIEW
The WhiteWave Foods Company is a consumer packaged food & beverage company. The company is involved in manufacturing, marketing, and selling of three product categories that include plant-based food & beverage, coffee creamers & beverage and premium dairy products. The plant-based food & beverage products include soy, almond, hazelnut and coconut drinks. The leading brands of the company include Silk, Alpro, Horizon Organic, etc. The company operates through two business segment North America and Europe. WhiteWave Foods is a former subsidiary of Dean Foods Company that was separated in May 2013.
The company operates throughout North America and Europe. The key competitors of the company include The Hain Celestial Group (U.S.), and Organic Valley (U.S.).
Company at a Glance Recent Financials
2012 XX XX XX Founded : 1977 XX XX XX% XX XX% Headquarters : Texas, U.S. XX XX% Employees : 2,600 XX Revenue : $XX Million XX R&D : $XX Million XX Ownership : Public, NYSE: WWAV 2009 2010 2011 2012
Total Revenue ($Million) Percentage change(%)
Geographic Revenue Mix Business Revenue Mix
North America Coffee Creamers XX% XX% and Beverages XX% North America XX% Premium Dairy
North America XX% Plant-based Foods and Beverages Europe Plant-based Foods XX% and Beverages
Source: Company Publication and MarketsandMarkets Analysis
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10.1.2 PRODUCTS & SERVICES
WhiteWave offers dairy alternatives products under the brand name of Silk and Alpro.
TABLE 1
WHIEWAVE FOODS: PRODUCTS & THEIR DESCRIPTION
Brands Products Varieties Description
Vanilla
Original
Chocolate
Very Vanilla
DHA Omega-3 The company offers wide varieties of soymilk
Soymilk Light Vanilla that are based on their flavors, additional ingredients, and their shelf stability. Light Original
Light Chocolate
Silk Organic Vanilla
Organic Unsweetened
Vanilla
Original
Dark Chocolate The company offers wide varieties of almond Almond milk milk depending on their flavors, sweetness, Unsweetened ingredients, and their shelf stability. Vanilla
Unsweetened Original
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Brands Products Varieties Description
Light Vanilla
Light Original
Vanilla The company offers three varieties of coconut Coconut milk that are Silk Pure Coconut Vanilla, Silk Original milk Pure Coconut Original, and Silk Pure Coconut Unsweetened Unsweetened.
The product is a plant-based drink made from Hazelnut Drink hazelnuts, which is smooth and creamy with hazelnut taste. Alpro The product is a plant-based drink made from Almond Drink almonds and has taste of lightly roasted almonds.
Source: Company Publication and MarketsandMarkets Analysis
10.1.3 STRATEGY & INSIGHTS
The core strategies of the company include brand building and product innovation. The company invests on marketing and promotional activities to strengthen their brand position. R&D initiatives and new product launches are the frequently adopted strategies by the company to expand their product portfolio and garner a larger volume share in the market. The company adopts R&D programs to develop products that meet the market demand. They were the first company to commercialize almond drinks in Europe and meet the consumer preference for plant-based dairy alternatives in 2012. The soymilk brands, i.e., Silk and Alpro, offered by the company have shifted from a niche product line to a variety of plant-based dairy alternative products.
They extensively seek cost-reduction opportunities that can aid the company to reinvest in value-addition for their existing brands and operational capabilities. They pursue various expansion opportunities in new markets to broaden their global reach. These strategies facilitate the recognition of their brands in new adjacent markets, which opens new avenues
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for growth of the company. Acquisition of Alpro in 2009 enabled the company to enter the European market and seek growth opportunities across Europe and North America.
10.1.4 DEVELOPMENTS
Date Approach Description
Dean Foods Company approved the distribution of its equity March 2013 Agreement interest in The WhiteWave Foods Company to their shareholders.
Dean Foods Company sold their Morningstar Foods division to January Agreement Saputo Inc. (Canada) for $XX billion to increase their financial 2013 flexibility.
Dean Foods Company acquired a soy-based beverage and food company, Alpro division of Vandemoortele N.V. (Belgium). This July 2009 Acquisition acquisition will establish their global leading position in soy- based beverage and food products.
Source: Company Press Release, Company Annual Report, Company Website, Company Publications, and MarketsandMarkets Analysis
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