The vegan yogurt market is estimated to be valued at USD 3.63 billion in 2024, exhibiting a CAGR of 18.6% over the forecast period (2024-2031). Furthermore, growing awareness regarding the benefits of plant-based and dairy-free products is fueling the market growth.
The vegan yogurt market is primarily driven by increasing health consciousness among people and growing demand for plant-based products. According to a survey, nearly 50% of Americans are reducing their dairy intake to lead a healthier lifestyle. This has propelled the demand for dairy-free vegan yogurts. Moreover, lactose intolerance is quite common these days. Approximately 68% of the world's population has a reduced ability to digest lactose after infancy. This large percentage acts as an opportunity for vegan yogurt producers to cater to the demand. Additionally, vegan yogurts are perceived to be more natural and environment-friendly, attracting even non-vegan consumers. However, high production costs and supply chain constraints remain key challenges for vegan yogurt manufacturers.
Increasing Health Consciousness Among Consumers
One of the key drivers of growth in the vegan yogurt market is the increasing health consciousness among consumers. More people are becoming aware of the health benefits of a plant-based diet and are cutting back on or completely eliminating dairy products. Vegan yogurts offer the same texture and taste as traditional dairy yogurts but without the negative health effects of dairy like lactose intolerance, risk of various diseases, etc. As consumers pay more attention to ingredient labels and nutritional content, vegan yogurt with all the probiotics and nutrients of regular yogurt is gaining popularity.
Rise in Ethical and Sustainable Consumption
Another major driver is the growing trend of ethical and sustainable consumption. More consumers are opting for vegan products as they want to reduce their carbon footprint and support ethical practices. Animal agriculture has substantial environmental impact through greenhouse gas emissions, pollution from waste, and deforestation for pastures. By choosing vegan yogurt, people can live more sustainably. Additionally, some see animal products as unethical due to concerns over animal welfare. The vegan yogurt meets this rising demand for cruelty-free and eco-friendly foods.
Higher Cost Compared to Dairy Yogurt
One key constraint in the vegan yogurt market is its higher cost compared to regular dairy yogurt. Producing vegan yogurts requires specialized ingredients like plant milks which are generally more expensive than cow's milk. This price difference makes vegan yogurt inaccessible for some consumers. However, as the market grows and production scales up, costs are expected to come down to be more competitive with dairy yogurt. Investments in research can also lead to more affordable plant-based ingredients and formulations.
Lack of Variety Compared to Dairy Options
Another restraint is the relatively smaller variety in vegan yogurts compared to conventional dairy options. Dairy yogurt comes in many flavors, textures, ingredients, etc. to suit different tastes. However, vegan yogurts typically have fewer flavor innovations due to the challenges of working with plant milks. This limits its appeal, especially for people who want fun flavors. As the market matures, more manufacturers are introducing novel vegan yogurt varieties to match the diversity in dairy offerings. Investments in new product development can help overcome this constraint.
Growth of Plant-based Sector
One major opportunity stems from the broader growth witnessed in the global plant-based foods industry. More people are reducing or eliminating animal products and looking for healthier, sustainable alternatives. This growing demand for vegan meat, dairy, and other substitutes also benefits the vegan yogurt market. As the plant-based sector gains prominence through innovative products, marketing, and supportive policies, it creates a conducive environment for vegan yogurts to attract more consumers.
Expanding into New Geographies
Another key opportunity lies in expanding distribution into new geographies. Currently, vegan yogurt has most penetration in developed Western markets like North America and Europe. However, a plant-based diet is increasingly popular in Asia and Latin America as well due to similar health and ethical concerns. Manufacturers can leverage this momentum to raise awareness and availability of vegan yogurt across emerging countries. With adapted marketing, affordable products, and suitable formats, many new markets can be tapped for substantial future growth in the vegan yogurt industry.
Link: https://www.coherentmarketinsights.com/market-insight/vegan-yogurt-market-5427
Key Developments
- In February 2024, Danone Canada launched Silk Greek-Style Yogurt with locally sourced pea protein
- In January 2024, Nature's Fynd launched Fy Yogurt, the world's first dairy-free yogurt made from a sustainable fungi protein called Fy. The yogurt is available in strawberry, peach, and vanilla flavors, and contains 8 grams of protein, 4 grams of fiber, and live active cultures. It is also free of allergens like nuts, soy, and gluten.
- In July 2023, a Germany-based brand, Müller, launched plant-based corner yogurts and rice pudding in the U.K.
- In March 2023, So Delicious Dairy Free launched a new coconut milk yogurt alternative with 0 grams of added sugar. This yogurt is sweetened with fruit instead of added sugar.
Key Players
Met Foods, Cocos Organic, Hain Celestial, EasiYo Products Limited, Danone, General Mills Inc., Stonyfield Farm, Inc., Daiya Foods Inc, Good Karma Foods, Inc., Hudson River Foods, NANCY'S, Kite Hill, COYO Pty Ltd., Nush Foods, Chobani, LLC, Barambah Organics Pty Ltd, Blue Diamond Growers, Dean Foods, General Mills Inc., and Granarolo S.P.A.
