The vegan yoghurt market is expected to continue its bullish run, driven by a combination of macroeconomic and industry-specific factors. Gains have been driven by vegan yoghurt’s availability in a variety of flavours, and the ubiquitous health and wellness trend. These factors helped vegan yoghurt sales increase by over 30,000 metric tons in 2018 over 2017, according to recent analysis by Fact.MR.
The study opines that almond yoghurt remains the bestseller, accounting for more than half of total vegan yoghurt sales in 2018. The trend is expected to prevail as vegan yoghurt companies continue to introduce new almond-milk based yoghurt products to meet consumers’ taste preferences while enhancing the vegan yoghurt’s nutritional value.
The adoption of veganism by famous celebrities and athletes has also added to the cause. Coupled with the endorsement from renowned health institutions and its potential cancer-preventing benefits, vegan products have garnered widespread popularity around the globe.
The study finds that over 80 per cent of vegan yoghurt is consumed in households. Further, the compact packaging of vegan yoghurt allows the consumer to eat it on-the-go, making it an attractive snacking option for busy consumers.
The use of vegan products in food chains and restaurants is gradually gaining traction; the study found moderate growth in the utilisation of vegan yoghurt and products in the food service industry. Although households dominate overall consumption, demand for vegan yoghurt from households and HORECA is growing at comparable rates.
Companies in the food processing and production industry are looking to capitalise on the ‘mindful choices’ trend. On account of the popularity of the trend, multiple small and large companies are launching new vegan products to consolidate their position. The fierce competition induced in the market as a result of the growing demand for vegan products is expected to lower pricing and encourage innovations in the field.
Numerous researches have linked health risks with the consumption of dairy products in the recent past. Increasing awareness about the potential side effects of dairy products is inducing a shift towards vegan products. This is also providing an impetus to the growth of vegan yoghurt market. The opportunities emerging in this sector are not lost on F&B companies who are introducing more vegan products to capitalise on the situation.
Vegan yoghurts utilise soy, almond, coconut or other plant-based milk for production. These ingredients are easily available, saving processors the volatilities associated with other ingredients. Moreover, the use of plant-based milk for the production of yoghurt does not entail the rearing of cattle which has led to a lot of controversies in recent times.
The study opines that the Asia Pacific excluding Japan (APEJ) will remain the largest market for vegan yoghurt globally. The APEJ market is likely to reach almost $5 billion in revenues by 2019-end. Asia Pacific is home to some of the most populous countries on the planet and the evolving consumer needs and preferences promise formidable growth prospects in the region.