Dairy-Free Ice Cream Market - Growth, Trends, and Forecasts (2023-2028)

The dairy-free Ice cream market is projected to witness a CAGR of 7.12% over the next five years.

Key Highlights

• The prevalence of lactose intolerance and the increasing number of vegetarian consumers are pushing consumers to purchase dairy-free products, while an expanding segment of consumers moving towards a vegan diet is exacerbating market growth. In the past decade, the number of vegan populations has been growing steadily owing to the rising awareness regarding healthy and sustainable foods, which increases the demand for plant-based meat alternatives in the global market.
• According to Plant Protein’s sources, in 2021, around 6% of United States consumers will be vegan, and the percentage will increase by six times over a year. Meanwhile, the countries in the Asia-Pacific region recorded one of the highest proportions of the vegan population.
• According to a study about vegetarian diets published on PubMed Central 2021, India records the highest prevalence of the vegan population globally, almost 40% of the total country’s population. This indicates that the shift to plant-based dining is a permanent fixture. Most of the population is focusing on limiting or reducing animal protein intake, and most consumers intend to make this a permanent change.
• Furthermore, in recent years, the growing concern about animal abuse has greatly impacted how consumers think about animal product consumption.
• For instance, in 2021, a global survey by Green Queen on changing consumers’ patterns towards vegan diets involving 8500 participants across 100 countries reported that nearly 90% of respondents cited animal welfare as a primary reason for the inclination toward a plant-based diet.
• On the supply side, increasing production capacities of major companies in the dairy-alternative ingredient space, as well as product development in the form of new and innovative flavors, is providing the fillip for ice cream manufacturers to provide consumers with options on dairy-free ice cream.

Dairy-free Ice Cream Market Trends

Product Diversity and Innovation to Fuel the Dairy-free Ice Cream Market

• Lactose allergies and intolerances are major reasons behind going dairy-free. Especially considering the food allergy statistic, cow's milk allergy is one of the leading food allergies in infants and children. For instance, as per ProCon Organization, 2021, 60% of people living in Brazil suffer from lactose intolerance. Thus, Brazil's demand for lactose-free milk products is also rising.
• Also, according to Agriculture and Agri-Food Canada, retail sales of free-from products were USD 848.1 million in Brazil in 2021. Thus, the market is witnessing rising health consciousness, and people are turning to dairy-free products. Numerous consumers are moving towards a vegan diet, which is fueling market growth across the globe.
• Due to the growing awareness of plant-based dairy-free products, consumers are willing to opt for dairy-free ice cream. This has led key players to invest in their research and development activities to develop dairy-free frozen desserts, including ice creams.
• Non-dairy frozen desserts, in particular ice creams, have been stocked up on store shelves in recent years, boasting natural ingredients, such as almond milk, soy, and coconut milk, sweetened by ingredients like agave nectar and dried cane syrup instead of sugar and corn syrup. Manufacturers are focusing on developing dairy-free desserts, especially ice creams that are healthy and plant-based, with clean labels, taste, and interesting flavor profiles.
• Gourmet flavors have been gaining popularity in the recent past. For instance, in November 2022, Unilever PLC launched a cow milk-free dairy ice cream. The company is developing a precision fermentation method that uses fungus and yeast to make milk proteins in a vat. Unilever claims to be the only company to develop ice cream using lab-grown milk, a dairy product created without the use of cows.

North America is the Fastest-growing Market

• Increasing consumer awareness about health issues associated with lactose in milk drives the dairy-free ice cream market size. According to ProCon Organization, 2021, 59% of people living in Canada suffer from lactose intolerance. Since this condition cannot be cured but controlled, demand for dairy-free ice creams has increased, which is expected to drive the market.
• Also, Over the projected period, the market will continue to be driven by the increased availability of dairy replacement products and rising consumer awareness of allergies, hormones, and unethical animal husbandry practices utilized in the dairy industry. Further, the dairy-free trend is supported by the rising prevalence of chronic diseases, including diabetes, heart disease, and stroke, among others, in the region.
• Other key factors, such as the increased demand for vegan food, owing to rising health consciousness and the growing vegan population, also result in turning to dairy alternatives. Technological advancements and product innovations for taste improvements to comply with the taste of dairy-based ice cream have provided a positive outlook for product demand.
• Demand for non-dairy ice creams, such as almond and coconut-based ice creams, is booming in the United States. The trend of maximizing nutrition credentials in dairy-free products such as ice creams by proliferating natural functional ingredients has certainly uplifted the market size in the region.

Dairy-free Ice Cream Market Competitor Analysis

The Global Dairy-free Ice Cream market is highly competitive in nature due to the existence of several domestic and international players in this field. The major players in the dairy-free ice cream market include Unilever PLC (Ben & Jerry's), Danone SA, General Mills Inc. (Häagen-Dazs), Tofutti Brands Inc., and Froneri, among others. Key players are majorly focusing on product development and product innovation to meet the consumer's needs by offering a variety of tastes and product quality to maintain premiumization. The market remains new and opportunistic for plant-based players as more consumers adapt to healthy eating trends. Also, increasing Research and development expenses and exploring new distribution channels, such as online retail channels, will enhance the market studied further.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.