Dairy & Egg Alternatives: Plant-Based & Animal-Free Products, 3rd Edition

Report Overview

• Plant-Based Dairy and Eggs: Long-Term Outlook Positive

For many years, increasing concerns about health and the environment have led more consumers to adopt plant-forward diets and plant-based alternatives to dairy or eggs to reduce intake of foods derived from animals. While some become vegetarian or vegan, thereby eliminating some or all classes of animal products from their diet, few consumers are willing to be so strict. Instead, a large group identify as flexitarian, meaning that they are reducing – but not eliminating – their consumption of animal products in favor of plant-based foods.
 

Some of the top reasons that people are increasing intake of plant-based foods include:

• health concerns – many people think plant-based dairy or eggs are healthier than conventional products (often due to a higher saturated fat content in animal products)

• allergies/food sensitivities – many consumers are lactose intolerant, and dairy and eggs are two of the “Big 9” major food allergens

• ethical/animal welfare concerns – ongoing publication of news stories about animal abuse and poor conditions at industrial dairy and egg farms is causing people to think more about where their food comes from and how it impacts the world

• environmental concerns – worry about climate change is leading consumers to question whether dairy or eggs can be part of a sustainable diet

• seeking novelty – many consumers are curious about new products and are open to trying new foods

Many consumers are turning to plant-forward and plant-centric meals – including plant-based dairy and egg alternatives.

While some plant-based foods that are intended to imitate (or compete directly with) conventional dairy or egg products have historically been highly processed, an increasing number of products continue to be released with less processing and cleaner labels. These products particularly appeal to consumers who are changing their diets for health reasons.

Plant-based dairy and egg products in the scope of this report include alternatives to dairy or eggs that attempt to replicate the flavor, function, and/or texture of these products through use of plant proteins. Alternatives like these often use terms such as:

• plant-based dairy/egg

• vegetarian/vegan dairy/egg

• dairy-free dairy/eggless egg

• dairy/egg alternative

• slightly altered names of the products they are imitating (e.g., chedd’r, mylk)

• invented compound names derived from the primary plant-based ingredient and the conventional product name (e.g., almond milk, cashew cream cheese)

Additionally, animal-free (or cultivated, lab-grown) dairy and egg products represent the next frontier of possibilities for dairy and egg alternatives.

Animal-free dairy and egg products may go by many names in corporate and consumer culture, including “cultivated”, “cultured”, “lab-created”, “lab-grown”, “cruelty-free”, “clean”, and “synthetic” dairy and eggs.

Over the next decades, a large number of new dairy and egg products created from derived proteins instead of directly from animals are expected to be released. A number of startups are developing these products, though there are many hurdles to overcome, particularly achieving economies of scale.

With a focus on “what’s next” and current consumer trends, Dairy & Egg Alternatives: Plant-Based & Animal-Free Products is packed with insights about consumer trends, behavior, and motivations to help food and beverage producers, retailers, packaging firms, employers, and investors gauge consumer perspectives and find areas for growth in a competitive market.

Dairy & Egg Alternatives: Plant-Based & Animal-Free Products delivers actionable predictions and recommendations designed to guide producers, retailers, and investors in making business decisions by providing data and insights about users of plant-based dairy and consumer openness to animal-free dairy products.

Scope

Dairy & Egg Alternatives: Plant-Based & Animal-Free Products is the go-to source for a complete understanding of U.S. consumer trends regarding plant-based dairy and egg products and the possibilities for the market for animal-free (or cultivated, lab-grown) dairy and egg products. This report combines Packaged Facts’ extensive monitoring of the food and beverage market with proprietary surveys, and evaluates current trends and future directions for marketing and retailing, along with consumer patterns during the pandemic, during the inflation area, and across the broader food and beverage market.

This Packaged Facts report analyzes the dynamics of the current landscape of the plant-based dairy and egg market as well as plant-forward diets and eating philosophies. Consumers who eat plant-based dairy products and those who are open to trying animal-free dairy products are examined. Trends including consumer usage of plant-based alternative products, reasons for diet and lifestyle choices, and retail and restaurant trends are also investigated.

Historical market size for the retail plant-based dairy alternatives market is provided from 2018 through 2023. Forecasts for the plant-based dairy market are provided from 2024 to 2029 and 2034. Numbers for the plant-based dairy and egg market include breakouts by product (butter; cheese; creamer; eggs; ice cream and other frozen novelties; milk; ready-to-drink beverages; spreads, dips, sour cream, and sauces; and yogurt), milk type (almond, blends, cashew, coconut, oat, pea, rice, soy, and other), and milk storage method (refrigerated or shelf-stable).

This report also provides foodservice market estimates for plant-based dairy and egg alternatives by product from 2018 to 2023 and forecasts from 2024 to 2029 and 2034.

Additionally, this report examines the uncertain landscape for animal-free (or cultivated, cruelty-free) dairy and egg products.

The reasons for and implications of shifts in consumer perception and behavior are analyzed in the context of future market opportunities.

Major competitors in the plant-based dairy and egg space, funding for plant-based and animal-free dairy and egg companies, and development of ingredients and new products are examined. Restaurant, retail, and packaging trends – both in general and in the plant-based dairy and egg alternatives market – are also analyzed.

The report has dozens of tables showcasing numerical survey data on consumer demographics and psychographics and numerous marketing photographs. This report goes in-depth on historical trends that have affected the food and beverage market.

Report Methodology

The information contained in Dairy & Egg Alternatives: Plant-Based & Animal-Free Products was developed from primary and secondary research sources. Primary research includes interviews with food and beverage market experts; participation in and attendance at food industry events; and extensive internet canvassing.

Primary research also includes national online consumer polls of U.S. adult consumers (age 18+) conducted on an ongoing basis by Packaged Facts to analyze attitudes of consumers and their relevant food and beverage preferences.

Survey data from MRI-Simmons are used to analyze the demographics and psychographics of consumers and usage trends for plant-based milk alternatives.

Supplementing Packaged Facts’ exclusive surveys is analysis from the International Food Information Council Foundation’s (IFIC) 2024 Public Perceptions of Processed Foods Report and the 2024 Public Perceptions of Pesticide & Produce Consumption Report provide. These reports provide valuable insight into consumers’ perspectives on food purchasing decisions and diet and lifestyle choices. Additionally, IFIC’s 2024 Food and Health Survey is used to provide other useful information on consumer behavior.

Snacking Trends Are Important to Plant-Based Foods

Snacking trends can be pertinent to plant-based foods, particularly dairy alternatives, because many people purchase packaged plant-based snack foods. Additionally, plant-based dairy products such as cheese and yogurt alternatives and other plant-based snacks such as plant-forward crackers and popcorn are often consumed as snacks with a healthier perception than many other packaged snack foods (e.g., cookies or potato chips). 

Private Labels Are More Desirable as Prices Rise

Private label products are less expensive than national name brands due to their lower merchandising and marketing costs. Many grocery stores offer high-quality private label products to be competitive with other stores and keep consumers coming back to shop. As packaged food products become increasingly premiumized, chain stores that sell groceries have offered more private label foods with premium characteristics – such as organic, “natural”, plant-based, non-GMO, and gluten-free. For instance, ALDI’s Earth Grown private label brand specializes in plant-based foods, including alternatives to dairy.

Inflation has been affecting many consumer budgets, so private labels are much more desirable as a cost saver. Reporting from the Wall Street Journal has found that volume sales for private label products in most food categories grew in the last year (ended May 2024), thereby taking market share away from national brands. These trends reveal that many consumers are shifting their behavior through substitution of national brands with private label alternatives.  

2023 Trends Result from Inflation and Changed Habits

In 2023, not dining out had less to do with the pandemic and more to do with changed habits and high food inflation. Eating out is often one of the first things that consumers cut or reduce when they are economically stressed, so it makes sense that some people may not be dining out as much as they did before the pandemic due to self-imposed budgetary limitations.

Additionally, some people who were ordering restaurant food or beverages for takeout or delivery instead of dining in during the pandemic continued these habits and consumed more items at home instead of in a restaurant – no longer because of the coronavirus, but just as a continuation of these habits. For instance, some of those who started ordering a lot of restaurant foods during the pandemic may now be used to this and prefer to purchase restaurant items for consumption at home.