Plant-Based Ice Cream Alternatives Market Growth Size [2031]

Report Description

The global plant-based ice cream alternatives market size was valued at USD 5.79 Billion in 2022 and is likely to reach USD 34.3 Billion by 2031, expanding at a CAGR of 34.6% during the forecast period, 2023–2031. The market is propelled by growing health awareness and the benefits of a plant-based diet.

Rising preference for healthier food options is anticipated to significantly contribute to the growth of the plant-based ice cream alternatives market. The rising prevalence of food allergies & lactose intolerance and the awareness regarding animal cruelty is shifting the consumer focus toward the adoption of plant-based diets and healthier food habits. This is leading to a growing demand for various plant-based food products available as alternatives to conventional food products.

Get Free Sample Report

• According to a report released by the National Institute of Health in July 2023, the lactose-free dairy industry has experienced rapid growth. The global compound annual growth rate for lactose-free dairy products was approximately 7% from 2017 to 2022, accounting for 80% of all lactose-free products.

Plant-based ice cream is free of lactose, which makes it a great option for people who are health-conscious, lactose-intolerant, or vegan. Being plant-based, this ice cream is a rich source of fiber and helps in maintaining digestion, balancing blood sugar, and lowering cholesterol levels. Commercially produced plant-based ice cream is made from almond, coconut milk, cashew, or soy. These ice creams are available in various flavors and retain the creamy texture of dairy-based ice cream without harming a single animal.

The research report finds that the COVID-19 pandemic hampered the market due to the implementation of stringent government regulations all around the world. The lockdowns restricted the supply chain operations to prevent the spread of infection. This disrupted the use of distribution networks for the import and export of products for food and beverage companies. However, as the restrictions have been lifted globally, the supply & distribution activities have resumed and the market is expected to regain its impetus and grow steadily during the projected period.

Plant-Based Ice Cream Alternatives Market Dynamics

Get Free Sample Report

Major Drivers

Growth in lactose intolerance and food-related allergies among children as well as adults is anticipated to drive the plant-based ice cream alternatives market. The increase in cases of allergies has led to a change in consumption habits and food preferences of consumers. Each year, in the United States, approximately 200,000 people suffer from various types of allergic reactions due to food and need emergency medical care. The increasing health awareness is likely to incline consumer behavior toward the adoption of a plant-based diet, thereby fueling the demand for plant-based ice cream.

Increasing awareness of animal cruelty is expected to boost the market during the projection period. Various organizations including the Animal Welfare Institute and People for the Ethical Treatment of Animals (PETA) work extensively for spreading awareness about animal cruelty and exploitative activities such as the use of artificial hormones to enhance milk production in cows, which often comes at the expense of their health. This is impacting not only the health of animals but also the health of people who consume these products.

• As per a recent survey, more people are choosing to buy organic products that do not involve animal cruelty. With this expanding trend, in 2023, 6% of the US population is expected to be plant-based products consumer, a significant increase from 1% in 2014.

Existing Restraints

Small consumer base of plant-based products is likely to hinder the plant-based ice cream alternatives market. Even though the demand for plant-based products is on the rise, their consumer base is considerably limited in comparison to that of regular food products. In addition, allergic reaction to plat-derived ice cream can also restrain the market. In plant-based ice cream, the milk is derived from beans and nuts. Therefore, people with such allergies cannot opt for these ice creams. As per article published by CNN in February 2021, more than 4.6 million people in the US have peanut allergies.

Emerging Opportunities

Adoption of plant-based products by major food & beverages brands is projected to create substantial opportunities for growth of the market. Several ice cream brands are releasing their own plant-based ice cream assortments to compete in the market. This is likely to help the companies to get higher sales and cater to the customers loyal to their brand. For instance,

• In February 2020, Mondelēz International, the biggest manufacturer of chocolate in the world, launched a plant-based variant of its most popular chocolate brand Dairy Milk.

Scope of Plant-Based Ice Cream Alternatives Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Plant-Based Ice Cream Alternatives Market Segment Insights

Source Segment Analysis

Based on the source, the plant-based ice cream alternatives market is divided into coconut milk, cashew milk, almond milk, soy milk, oats milk, and others. The coconut milk segment is projected to hold the major share of the market during the projection period, due to the easy availability of coconut milk. This milk is used in making of numerous sweets and confectionaries as an alternative to dairy milk.

Coconut milk can easily be processed and is highly cost-effective. It helps in managing health by providing the body with good HDL cholesterol and protection from cardiovascular diseases. In addition, the high compatibility of coconut milk along with several flavors and its creamy texture is leading to an increased demand for coconut milk among consumers.

The almond milk segment is anticipated to expand at a significant pace in the market, owing to its wide range of health benefits. There has been an increase in the use of almond milk in producing various vegan food products in recent years. It is a rich source of vitamin D and has very few calories as compared to the dairy-based milk. Moreover, the almond milk also helps in strengthening the bones and reducing the risk of heart disease. The rising prevalence of heart diseases is likely to fuel the demand for almond milk-based ice creams.

Get Free Sample Report

Flavor Segment Analysis

On the basis of flavor, the global market is segregated into vanilla, strawberry, chocolate, mango, and others. The vanilla segment is projected to register a substantial CAGR during the forecast period, on account of the fact that it is the most popular flavor of ice cream in the world. The key factor contributing to its popularity is its ability to blend with almost all desserts and significantly enhance the taste. Furthermore, vanilla usually contains less sugar in comparison to the other flavors, and therefore, is one of the healthiest options.

• As per a survey report published in February 2023, vanilla-flavored ice cream was voted as the most popular ice cream in Japan. More than 33% of Japanese people opted for vanilla as their favorite during the survey.

The chocolate segment is expected to expand at a significant growth rate due to changing consumer preferences. This growth in the chocolate industry can be attributed to the development of cocoa-based various products and the introduction of new and innovative flavors. The introduction of cocoa and chocolate (dark) has been shown to assist in the prevention of cardiac-related diseases. Furthermore, cocoa is also used to add texture to ice cream, which is expected to contribute to the growth of this segment during the forecast period.

Get Free Sample Report

Packaging Segment Analysis

On the basis of packaging, the plant-based ice cream alternatives market is segmented into cups & tubs, bars & pops, and others. The cups & tubs segment is anticipated to register a robust growth rate during the forecast period, owing to the growing preference for ice creams as a household post-meal dessert. These packaging are advertised as ideal dessert packs for homes and have resulted in a changing perception among consumers, affecting their eating habits.

Global ice cream brands, as a result, are widening their product offerings in this segment. The benefits of plant-based ice creams such as higher amounts of protein and lower cholesterol as compared to their dairy-based counterparts, are attracting consumers in great numbers, further contributing to the growth of the segment.

• As per the report published by the National Institute of Health in October 2022, plant-based ice creams with high protein (3g and above) often contain seeds and nuts. The frozen plant-based desserts with fruits such as pear and apple in it had the highest levels of protein.

Form Segment Analysis

Based on form, the plant-based ice cream alternatives market is divided into singles and blends. The singles segment is expected to generate a major revenue share of the market, due to the immense demand for plain vanilla and chocolate flavors among consumers. Studies suggest that consumers often prefer well-known flavors rather than experimenting with new ones. For that reason, they also favor various other single-fruit flavors including mango, strawberry, and orange, among others, which is likely to aid the growth of the segment.

Distribution Channel Segment Analysis

Based on distribution channel, the global market is segregated into offline stores & online stores. The offline stores segment is further segregated into supermarkets & hypermarkets, retail stores, specialty stores, and others. The offline stores segment holds the largest market share and is projected to continue growing at significant growth rate. This growth is attributed to the ease of access and an opportunity for consumers to sample new flavors by visiting stores in person. Various ice cream brands use retail stores to promote new products and flavors, further leading to the growth of this segment.

Regional Outlook

In terms of region, the global plant-based ice cream alternatives market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the increasing prevalence of food allergies and lactose intolerance. In addition, the growing awareness of animal welfare and campaigns to stop animal cruelty is encouraging the consumers of this region to opt for plant-based food products, which is anticipated to boost the growth of this segment during the projection period.

• As per the report published by the Centers for Disease Control and Prevention (CDC) in 2021, one out of three adults and one out of four children in the US has various types of food allergy. Lactose intolerance is leading to problems such as milk protein-induced entropy, anaphylaxis, and protein-induced gastroenteritis.

Asia Pacific is expected to witness significant growth due to rising health & food awareness, rapid urbanization, and increasing per capita income. There has been a growth in the popularity of plant-based food products in recent years with the increasing adoption of modern lifestyles. Furthermore, the rapid increase in population is also one of the factors contributing to the market growth. The region is likely to have steady market growth during the forecast period.

Get Free Sample Report