4 Trends to Know About the Rising Plant-Based Milk Industry in 2023

The plant-based milk industry has grown over the last decade, and it’s not going away any time soon.

In fact, plant-based milk is the largest plant-based category and is growing globally by 15.5% annually during the forecast period of 2022-2029; as a result, the value of plant-based dairy products in the market have reached USD $38.90 billion and is expected to reach the value of USD $123.20 billion by 2029 [1].

This recent surge in popularity is driven by millennials, people with dietary restrictions, and those concerned about the environment. Oat milk has emerged as a popular alternative to other plant-based milks, with its mild, less sweet taste making it a versatile ingredient for use in a range of recipes. This has led to a focus on high-quality ingredients and transparency, with product launches highlighting the sources of oats used. The alternative milk industry is also seeing an expansion of flavors and ingredients, with companies such as bubblegum flavor and others adding ginger to its plant-based milk. Plant-based milk made from fruit and vegetables is also becoming more popular, with options including potato, avocado and chia seed milks. Convenient Packaging is also playing a key role with consumers as they would rather purchaser plant-based milk products with packaging that is easy to use and convenient.

Rise of Oat Milk: A Trending Plant-Based Milk

When it comes to consumer preference, almond milk is still the top choice, with 63% of shoppers choosing it as their favorite dairy alternative. However, coconut and oat milk are also popular options, with 48% and 46% of shoppers preferring them respectively [3].

Oat MilkOne of the most notable developments is the rise of oat milk as a leading plant-based milk alternative. This is likely due to several factors, including the fact that oat milk has a milder and less sweet taste than many other plant-based milks. This makes it a versatile ingredient that can be used in a wide range of recipes and applications such as smoothies, lattes, or baked goods.

Additionally, oat milk has been the subject of many innovative product launches in recent months. These launches have focused on using high-quality, simple ingredients, and have often highlighted the specific regions or farms where the oats are sourced. This focus on quality and transparency is resonating with consumers and has helped to establish oat milk as a top choice among plant-based milk alternatives.

Expanding Flavors and Ingredients in the Alternative Milk Industry

Ingredients for different flavors

One trend to watch out for is the expansion of flavors and ingredients in plant-based milk and milk alternatives. Milk producers are trying to keep up with the demand for diverse and unique flavors and are launching new products with different flavors to cater to different demographics. For example, HiLo School has launched a bubblegum flavor, which is a nostalgic taste for some consumers. Vinasoy Fami has added ginger to their plant-based milk, positioning their product as a healthy option, as 72% of shoppers believe ginger is good for their bodies. Cimory has also introduced a biscuit milk innovation, which is reminiscent of the popular biscuit dunking habit [2][4].

These flavors may seem unusual to some, but they cater to the 14% of global population who typically choose unusual flavors. In the Asia and Australasia region, this percentage rises to 17%, making it an attractive market for these new product launches [3].

In addition to the expansion of flavors, specific formulations can also catch the attention of consumers. The addition of vitamins is a surefire way to establish the product as healthier, as 72% of consumers believe vitamins are good for the body. Immune boosting ingredients are also considered an essential driver to purchase by 45% of global shoppers [3].

The Rise of Plant-Based Milk from Fruit and Vegetables

Plant-based milk from fruit and vegetables is not new. In fact, it has been around for centuries. The earliest records of vegetable-based milk go back to ancient China, where people used to create a milky substance by soaking dried soybeans in water overnight and then straining out the pulp. However, plant-based milk from fruit and vegetables has recently seen an increase in popularity due to its low environmental impact.

One such option is potato milk, which has emerged as a new plant-based milk option for consumers looking for something different without sacrificing health benefits or flavor. Some other varieties that have hit the market are milks made from avocado, chia seeds, macadamia nuts, flaxseed, bananas, hemp, and barley.Vegan potato milk in two glass and potato in plate on gray background. Plant based milk replacer and lactose free

The production of plant-based milk from fruit and vegetables has also become more cost-effective, making it an attractive option for manufacturers to explore. With the growing demand for plant-based milk options, the fruit and vegetable milk industry is one to watch in 2023.