Plant milk is gaining popularity in many countries. Consumers' concern for the health, ecology and welfare of animals is the main driver of the growth of the market for plant milk and other plant-based products. In addition, the growing demand for dairy alternatives is also influenced by the growing awareness of consumers about the benefits of vegan and vegetarian diets.
All this encourages companies to increase the production of plant milk, constantly expanding their product range, for example, in some countries of Southeast Asia, jackfruit plant milk is gaining popularity.
To date, the most popular type of plant milk in the world is soy. Next in popularity are almond, coconut, oatmeal and rice milk. Active consumer demand has also been observed recently for certain niche types of plant milk, such as pea, hemp, barley, pistachio and other types based on nuts and cereals.
The largest volumes of consumption occur in the countries of the Asia-Pacific region, Europe and North America. The consumption of plant milk in the Middle East, Africa and Latin America is not so widespread yet, despite the high growth rates of the market in these regions.
Asia-Pacific region
The Asia-Pacific region (APR) is a world leader in the consumption of plant milk. Almost all Asian countries have a long-standing culture of soy milk consumption, due to the wide prevalence of this product in the region.
The demand for plant milk in the Asia-Pacific region is stimulated by the growing awareness of the population about the impact of the livestock industry on the environment, as well as the need to take care of health, especially after the prolonged COVID-19 pandemic, which gave an additional impetus to the spread of the trend for a healthy diet.
In addition, a significant part of the region's population suffers from lactose intolerance. For example, in China it is more than 90% of the population older than 3-4 years, in India 20% of children and up to 50% of adults, in Japan up to 80% of adults can drink milk, but not more than 200 ml per day. Therefore, plant-based drinks have long been popular here.
The capacity of the plant milk market in the Asia-Pacific region in 2022 is estimated at $ 9,779 million, about 48.0% falls on soy milk. The most popular types of plant milk in the region are also coconut and almond milk — 17.1% and 9.1%, respectively. The largest consumer countries of plant milk in the region are China, Japan, the Republic of Korea, Thailand, Vietnam and Australia.
In the medium term, it is expected that the capacity of the plant milk market in the Asia-Pacific region will increase with an average annual growth rate of 4.5% and will reach $12,159 million by 2027.
Europe
Due to the increasing prevalence of diseases such as obesity, diabetes and hypertension, European consumers have become more concerned about their health and well-being, increasing the consumption of plant-based products, including plant milk. Consistently high growth rates of plant milk consumption are also provided by increasing the number of vegans and vegetarians. In 2022, there were about 2.5 million vegans in Europe, while in 2016 this figure was only 1.3 million people.
The need for plant-based products is maintained due to the growing number of cases of lactose intolerance among the European population. The demand for plant milk in Europe is also increasing due to the popularization of the functional properties of plant milk.
For example, soy and almond milk can have preventive actions against cardiovascular diseases, having antioxidant and immunomodulatory properties.
The capacity of the plant milk market in Europe in 2022 is estimated at 4,071 million US dollars, 31.6% falls on soy milk. The most popular types of plant milk in the region are also oatmeal, almond and coconut milk — 30.3%, 17.7% and 7.0%, respectively. The largest consumer countries of plant milk in the region are the countries of the European Union: Germany, Spain, Italy and France. In the medium term, it is expected that the capacity of the plant milk market in Europe will increase with an average annual growth rate of 12.1% and by 2027. it will reach 7,209 million US dollars.
North America
The plant milk market in North America continues to increase, despite a slowdown in its growth rates in 2021-2022. The growing influence of the healthy food trend in the region is increasingly increasing the number of consumers of plant-based products. The market is also supported by the restored catering sector, especially coffee chains, which are increasingly using various types of plant milk. Despite the fact that almond milk is the most popular type of plant milk in the region, oat milk shows the highest growth rates in consumption and is rapidly increasing its market share. The consumption of soy milk in the region continues to decline along with the consumption of rice and coconut milk. It is expected that in the medium term in North America there will be an increase in demand for pea, hemp and barley milk.
The capacity of the plant milk market in North America in 2022 is estimated at $ 3,595 million. The United States is the largest consumer of this product in the region (US$ 3,191 million), while Canada accounts for only 11.2% (US$ 404 million) of plant milk consumption in the region.
In the medium term, it is expected that the capacity of the plant milk market in North America will increase with an average annual growth rate of 5.9% and will reach $4,797 million by 2027.
Latin America
The relatively small capacity of the plant milk market in Latin America is increasing by more than 5% annually, which is supported by demand from the population that prefers plant products (vegans, vegitarians and flexitarians). Soy milk still dominates the structure of plant milk consumption in Latin America, while its share of consumption is gradually decreasing, giving way to almond, coconut and rice milk.
Consumer concerns about the high sugar content in plant milk are pushing local producers in the region to develop new products based on soy, almonds, rice, oats and coconut without added sugar and artificial sweeteners.
Despite the fact that most of the plant milk is produced in Latin America, local producers are heavily dependent on imported raw materials, such as almonds from the USA and Spain or coconuts from the Philippines.
Mexico, Argentina and Brazil are the largest consumers of these products in the region. In the medium term, it is expected that the capacity of the plant milk market in Latin America will increase with an average annual growth rate of 13.2% and will reach $1,820 million by 2027.
Middle East and Africa
Currently, the plant milk market in the Middle East and Africa is rather poorly developed — there is not much wide representation of plant milk on the shelves of Middle Eastern countries. The main consumers of plant milk in the Middle East are people from other regions who are more inclined to use such products. However, in the long term, it is expected that consumer concerns about health, climate change and sustainable development, as well as the influence of global Western trends, will increase the demand for plant milk in this region.
The capacity of the plant milk market in the Middle East and Africa relative to other regions is small and in 2022 is estimated at 639 million US dollars. Soy milk occupies the majority of the market (62.9%), the share of oat and almond milk is 11.9% and 11.6%, respectively. The largest volumes of consumption are concentrated in Israel and Iran, Ghana, South Africa and the UAE are also major consumers. In the medium term, it is expected that the capacity of the plant milk market in the Middle East and Africa will increase with an average annual growth rate of 9.6% and by 2027. it will reach 1,009 million US dollars.
Global market
In 2022, the volume of global consumption of plant milk amounted to 10.2 million tons for 19.1 billion US dollars. In 2017-2022, the global plant milk market grew annually by an average of 2.2%.
In the global structure of plant milk consumption by type in 2022, the largest volumes accounted for soy (37.8%) and almond milk (20%). This is followed by coconut (12.6%), oatmeal (12.0%) and rice (2.3%) milk. The share of consumption of other types of plant milk (including mixtures) in 2022 was 15.3%. In recent years, there has been a downward trend in the share of global soy milk consumption and the growing popularity of oat and almond milk.
In the structure of the world consumption of plant milk, the largest region is the Asia-Pacific region, which accounted for 57.1%. The volume of sales of plant milk in this region in 2022 amounted to 5,809 thousand tons, which is 3.1% more than in 2021. However, the average annual growth rate for 2017-2022 was -0.4%, which was caused by a decline in sales in 2020 and a slow subsequent recovery in consumer demand in 2021-2022 in China and Thailand.
The North American market is the second largest consumer of this type of product. In 2022, consumption amounted to 1,867 thousand tons (18.3% of the world market). Compared to 2021, consumption increased by 2.9%. During the period under review, the market volume steadily increased by an average of 5.1% per year, but the greatest growth occurred in 2020, when consumption increased by 9.2% by 2019.
European countries accounted for 18.0% of the global plant milk market in 2022. In 2022, consumption amounted to 1,834 thousand tons, which is 5.7% more than in 2021. The European plant milk market is one of the fastest growing in the world with an average annual growth rate of 10.1%.
Plant milk sales in Latin America accounted for 4.6% of the global market. In 2022, consumption reached 464 thousand tons (+6.3% by 2021). The average annual growth rate for 2017-2022 was 1.0%.
Sales of plant milk in the Middle East and Africa in 2022 amounted to 208 thousand tons, an increase of 5.8% compared to 2021. On average, in 2017-2022, the consumption of plant milk in this region increased by 5.9% annually.
Due to a sharper increase in prices for plant milk in some regions, the Asia-Pacific region is also the largest region by consumption in value terms with a share of 51.3%.
The second largest plant milk market in the world (21.4% in value terms) is Europe, where sales in 2022 amounted to 4,071 million US dollars, which is 7.6% more than in 2021. The average annual growth for 2017-2022 was at the level of 13.3%. North America closes the top three largest consumers of plant milk in the world. In 2022, the North American plant milk market amounted to $3,595 million, or 18.9% of the global market. Compared to 2021, consumption increased by 9.4%. On average, over the past 5 years, the North American market has increased by 7.7% in value terms.
Sales volumes of plant milk in other regions of the world are significantly lower than in the above, however, due to the high level of inflation in 2017-2022, the markets demonstrate rapid growth dynamics in value terms. The Latin American market of plant milk in 2022 in value terms increased by 17.2%, to 980 million US dollars, taking 5.1% of global consumption.
The fastest growing market is the Middle East and Africa with an annual growth rate of 13.8% for 2017-2022. Despite the high growth rates, the region accounts for only 3.4% of sales in value terms. In 2022, the consumption of plant milk in value terms reached $639 million, which is 3.3% more than in 2021.
The absolute leader in terms of consumption of plant milk in the world is China, which occupies 36.4% of the market in kind and 32.1% in value terms.
The peculiarities of the development of the Chinese market in the last three years are largely explained by the impact of the COVID-19 pandemic. The introduction of epidemiological restrictions, as well as increased production costs, led to a reduction in supply in the Chinese market, which became the main factor in curbing consumption.
As a result, in 2020, sales decreased to 3,055.2 thousand tons (4,459.1 million US dollars). The decline in indicators in China in 2020 was caused by a decrease in consumption of coconut milk (-25.0% by 2019) and other types of plant milk (-45.3%), including from walnuts, peanuts and other raw materials. Meanwhile, in 2021-2022, there was a rapid recovery of the Chinese plant milk market against the background of an increase in consumer activity and the gradual lifting of epidemiological restrictions. Most of the needs of the Chinese market in plant milk are met by its own production. The largest manufacturers of these products in China are Hebei Yangyuan Zhihui Beverage (Yangyuan brand), Coconut Palm Group (Coconut Palm brand), Wanxiang Sannong (Lolo brand), Fujian Dali Food (Dou Ben Dou brand) and Vitasoy International Holdings (Vitasoy brand), which together account for about 60% of the market in value terms.
The second place in terms of consumption of plant milk is occupied by the USA. There has been an established culture of consumption of this type of milk in the country for a long time. In 2022, consumption amounted to 1,704.2 thousand tons for $3,190.8 million. During 2017-2022, the consumption of plant milk in the country grew annually by 7.8% in value terms. Unlike consumption in China, there was no decline in the US in 2020, the market was developing evenly.
The main factors of the market growth are increasing attention to environmental protection, popularization of a healthy lifestyle and proper nutrition, as well as expanding the range of plant milk offered by producers. The largest producers of the products in question on the US market are Danone Group (Silk, So Delicious brands) and Blue Diamond Growers (Almond Breeze), which account for almost half of the US plant milk consumed in value terms.
Concern for the environment, increased awareness of healthy nutrition, as well as the organoleptic properties of plant products have a significant impact on the consumption of plant milk in Japan, which ranks third in the structure of world consumption. At the same time, in recent years, the country has been experiencing stagnation of real incomes of the population due to high inflationary pressure, which directly affects the consumer demand of the country's population. After sales growth in 2020 consumption has remained stable over the past two years. In 2022, the volume of sales of plant milk in Japan amounted to 431.8 thousand tons for 1,010.5 million US dollars. More than 80% of plant milk consumed in the country in value terms is soy milk, almond milk is also in increasing demand. The main factors in the growth of almond milk consumption in Japan are its nutritional and energy value, the expansion of the assortment and active marketing activity on the part of local producers. The most popular in the country is plant milk from Kikkoman Corp (Kikkoman brand) and Marusanai (Marusan brand), which account for about 70% of plant milk sales in Japan. The largest producers of almond milk are Ezaki Glico (Almond Koka brand) and Blue Diamond Growers (Almond Breeze brand).
The volume of plant milk consumption in Spain in 2022 amounted to 416.6 thousand tons (or 649.1 million US dollars), which is 3.5% in value terms more than 2021. For 2017-2022, the market steadily grew by 7.9% in value per year. In recent years, almond and oatmeal plant milk has been gaining popularity among Spaniards, while the demand for soy milk is gradually decreasing.
The largest producers of plant milk in the country, which account for about 40% of sales of these products, are Liquats Vegetals (Yosoy and Almendrola brands), Danone Groupe (Alpro and Savia brands) and Calidad Pascual (Vive Soy brand). In addition, 25% of consumption is accounted for by sales of its own trademark of the largest Mercadona retail chain in the country (Hacendado brand).
Thailand closes the top five largest consumers of plant milk, whose consumption volumes in 2022 amounted to 391.8 thousand tons for 569.5 million US dollars. In 2017-2022, the market gradually declined by an average of 2.8% per year, however, due to the increase in prices in value terms, an annual increase of 0.9% was noted. More than 90% of the plant milk consumed in Thailand comes from soy products. The largest producers in the country for a long period of time remain Lactasoy, Green Spot (the Vitalk brand) and Dutch Mill (the DNA brand).
In the structure of the world consumption of plant milk in value terms, China, the USA and Japan retain the first three places, while Germany and the United Kingdom occupy the fourth and fifth places.
Sales volumes of plant milk in Germany have been showing steady growth over the past 5 years. In 2017-2022, the market grew by 25.1% annually in value terms. In 2022, the demand for plant milk in the country amounted to 374.9 thousand tons for $ 802.1 million, about half of which was for oat milk. The main factors influencing the dynamics of the German market are a reduction in the production of cow's milk and livestock in general, a high level of consumer and production inflation and the expansion of the product range, including through the launch of plant milk for coffee shops and restaurants. The most popular among consumers are the plant milk brands of the companies Cereal Base (Oatly brand) and Danone Groupe (Alpro and Provamel brands), which account for about 50% of all sales in Germany.
In 2017-2022, the UK plant milk market showed one of the highest growth rates among European countries — by 16.7% in value. In 2022, the consumption of products in the country reached 298.3 thousand tons by 659.6 million US dollars, an increase of 11.2% in value terms by 2021. The largest increase in the consumption of plant milk in value terms in recent years has occurred in oat milk.
