The market is expected to grow at a steady pace throughout the forecasted period due to the growing shift towards plant-based and vegan alternative products as consumer awareness increases. This has resulted in the incubation of many start-ups in the market. These start-ups in the market have been part of various fund-raising developments lately, which are expected to improve their product offerings and thus drive the market.
Adding to that, with the expansion of the offline sales channels, the market is expected to grow further due to a predicted rise in the volume of sales owing to the added sales channels. For instance, Target, which is a chain of department stores, announced a huge expansion investment in March 2021.
The company planned on investing a sum of USD 4 billion annually, over the course of the coming several years in order to add 30 to 40 stores in the US each year. It also planned to open two distribution centres in Delaware and Chicago in the same year. Thus, developments like these by these retail giants are thus expected to increase the sales of these yogurts via offline channels.
The plant-based yogurt market is driven by favorable market developments
With the growing health consciousness among people and their shift to veganism, the market for plant-based yogurts has been observing a lot of major developments to cater to these customers. Players in this market have been experiencing a major influx of funding from various investors to improve their plant-based dairy product offerings, which is expected to drive the market.
Further, new and innovative product launches by various market players are further expected to drive growth in the market. For instance, in August 2021, Wellme, which is a startup based out of Shanghai, announced the creation of a gut-healthy chickpea-based yogurt under its plant-based yogurt line, Berrywell.
Further, in April 2022, MISTA, launched a novel plant-based yogurt base using ingredients like fava protein and plant-based peas. This base could further be used by companies in the plant-based ypgurt market in order to tweak their formula according to their individual requirements. Developments like these in the market are thus expected to give rise to fresh and new products, which are bound to keep the consumers to keep coming back, thus driving the market.
As a result of all these favourable developments, growth has been reported by key market players in their plant-based offerings. For instance, Danone reported like-for-like growth of 3.7% in sales of its essential dairy and plant-based (EDP) offerings in 2021 as compared to 2020, according to its annual report.
North America accounts for major shares of the plant-based yogurt market
By geography, the tank level monitoring market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
Plant-based yogurts are made up of milk which is extracted from cashews, almonds, oats, peas and others. The North American region has witnessed a slow consumption of dairy products in the recent years owing to multiple health and diet concerns that is resulting in this plant-based yoghurt acting as a substitute for an alternative source of nutrition. This factor is expected to drive the plant-based yogurt market towards growth in the North American region.
Plant-based yoghurts are gluten-free and low in sugar but rich in vitamins and probiotics which act as a substitute for individuals who are concerned with their dietary habits. The United States has witnessed a slow consumption of dairy-based products owing to multiple health concerns which are expected to drive the market of plant-based yoghurt in the region.
Approximately one-third of the population in the United States suffers from the issue of lactose intolerance and since plant-based yoghurts are lactose-free, the market is expected to witness growth. Not only are they lactose and dairy-free, but they are gluten-free as well. It moreover consists of a new taste with a subtle tartness that appeal to gourmets.