Cargill: Plant-Based Dairy Alternatives See Significant Growth
Cargill's new report indicates a substantial rise in the plant-based dairy alternative market, with the COVID-19 pandemic accelerating consumer adoption.
The global market for plant-based dairy alternative products, valued at an estimated $22.6 billion in 2020, is projected to reach $40.6 billion by 2026. In the United States, sales grew from $4.9 billion in 2018 to $7 billion in 2020, with growth outpacing total food sales by nearly two to one.
According to a new report from food giant Cargill, the shift from traditional dairy products to plant-based alternatives is driven by multiple factors. Health concerns and environmental considerations are the most frequent drivers, as plant-based products are widely perceived as beneficial for both personal health and the planet.
The COVID-19 pandemic has also significantly accelerated this trend. In 2020, 77% of U.S. shoppers purchased a plant-based product, and 30% did so as a direct result of the pandemic, citing a desire to increase intake of immune-boosting foods and to experiment with ingredients in home cooking.
The "Plant-based dairy alternative products: insights report," based on research by Cargill and Decision Analyst, explores consumer demand and purchasing behavior for products like plant-based milk, creamer, cheese, and ice cream alternatives. While plant-based milk alternatives remain the largest category, rapid growth in smaller segments like creamers, butter, and cheese indicates increasing consumer acceptance.