A recent market research report by Research and Markets forecasts an annual growth rate of 12.0% in the market for plant-based beverages through to 2023. According to the report, the significant growth rates in this area are primarily attributable to consumers’ changing consumption habits.
The global market for plant-based beverages is estimated to be worth USD 11.16 billion by 2018. By 2023, it is projected to reach $19.67 billion, with an annual growth rate of 12.0% over the forecast period. The dairy alternatives segment is expected to be the largest segment of the plant-based beverage market by 2023, according to the report.
The growth of the plant-based beverage market is fuelled by the growing popularity of vegan diets, particularly amongst millennials. In addition, companies are showing interest in the niche plant-based beverage segment by acquiring local players or investing in innovative products to stimulate and satisfy consumer interests. This has also driven the growth of the market.
Due to the premium price of plant-based products in many countries, the costs of these products remain higher than those of dairy products. Manufacturers are therefore working to lower the prices. This is a challenge for manufacturers in this market. In addition, consumers in many emerging markets are not aware of the advantages of plant-based beverages over dairy drinks because of a lack of appropriate advertising strategies. As a result, these regions continue to be heavily dependent on dairy products.
The Asia-Pacific region is expected to be the fastest-growing plant-based beverage market in the forecast period, according to industry analysts. For example, large dairy companies in China are planning to penetrate the market for niche plant-based products. As a result, there are strong growth prospects for plant-based beverage producers in this region.
To read the full report, click here.