The dairy alternatives market from the online stores segment will exhibit a 10% CAGR through 2028. To significantly address this situation and amplify business even during the crisis, product manufacturers are placing greater emphasis on boosting their online distribution channels. For instance, in January 2022, Organic Garage Ltd. announced that its plant-based food producer, Future of Cheese Inc., was preparing to launch an e-commerce store to meet the escalating demand from click-to-table digital shoppers in Canada.

Cheese is considered a technically challenging space for dairy alternatives due to its complexity. Over the years, manufacturers of the plant-based cheese category have been struggling to provide more offerings with improved taste and texture and meet the expectations of consumers. However, in recent years, massive strides have been made by major food manufacturers to bridge this gap and provide consumers access to a wide variety of dairy-free cheese options.

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Dairy alternatives market will observe substantial demand in coming years. Accordingly, consumers are limiting the use of dairy milk as cooking ingredients as well as beverages, which could reduce the risks of chronic ailments like diabetes and cancer.

With the growing concerns about the side effects of cow milk consumption, including cardiovascular diseases, there has been a shift towards milk alternatives over the years. As a result, dairy alternatives are becoming mainstream solutions, mainly due to the rising prevalence of milk allergies and lactose intolerance among consumers.

The rise of the vegan population and an increase in milk adulteration have been observed, especially in developing countries, influencing consumers to opt for alternatives to dairy products. According to a survey report published by the Guardian, there was a 40% increase in the vegan population in 2020, bringing its total to over 1.5 million. This factor has influenced food producers to launch new dairy alternatives for vegans.

To gain a competitive advantage over rivals, food companies have been gearing towards expanding their footprint across the European markets with innovative products in the dairy-free category. Amid a persistent rise in the consumption of plant-based dairy alternatives, Nestlé introduced pea-based milk, Wunda, in May 2021. This plant-based milk, like other variations, is more carbon-friendly as compared to its dairy-based counterparts.

The novel coronavirus pandemic has asserted a negative influence on the production, packaging, and processing of foods worldwide. The pandemic’s impact on the milk substitution industry, however, was mixed; the organic dairy alternatives demand remained high, while lack of storage units, raw materials, and manpower during the lockdown created a hindrance in the demand and supply scenario.

This pea-based milk was targeted to be launched initially in the Netherlands, France, and Portugal prior to bringing the brand to more European markets. This initiative was also taken to gain a competitive edge over brands like Oatly and Alpro, which hold a significant position in the dairy alternatives market.

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According to data from Sidney Gut Clinic, above 75% of the entire population may experience lactose intolerance to some extent, with adults being a more susceptible age group. Factors like these could spur the demand for lactose-free milk and enable the overall dairy alternatives market to gain traction worldwide.

For instance, in August 2021, Violife unveiled Vioblock, its vegan and dairy-free alternative to butter, which is 100% plant-based and contains essential substances like Vitamin B1 and folic acid. This new launch was geared towards expanding its product offering within the dairy alternatives category.

For instance, in February 2022, The Laughing Cow, Nurishh, and Babybel became some of the mainstream brands hopping onboard the dairy alternatives bandwagon, through the launch of new vegan cheese products to improve their accessibility and familiarity to consumers like traditional cheese.

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