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Non-Dairy Ice Cream Market size crossed USD 700 million in 2022 and is projected to exhibit a 10.5% CAGR from 2023 to 2032.
The increasing prevalence of lactose intolerance and milk allergies among people worldwide, particularly across the U.S. and Canada, will propel the consumption of non-dairy ice cream. Approximately 30 million adults in the U.S. suffer from some degree of lactose intolerance by the age of 20. Meanwhile, the East Asian population continues to show a high incidence rate, with more than 70% of the general public suffering from lactose intolerance, as per the National Institutes of Health (NIH).
Over the last decade, the number of people with an allergic reaction to animal-derived dairy products have witnessed a dynamic rise, emphasizing the consumption of plant-based alternatives such as coconut, soy, almond, and oat milk-based ice creams. Moreover, the rising advancements in the production of low-fat, gluten-free, and lactose-free dairy alternatives will stimulate the market outlook.
Report Attribute | Details |
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Base Year: | 2022 |
Non-Dairy Ice Cream Market Size in 2022: | USD 710 Million |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 10.5% |
2032 Value Projection: | USD 1,990 Million |
Historical Data for: | 2022 to 2018 |
No. of Pages: | 317 |
Tables, Charts & Figures: | 395 |
Segments covered: | Region, Product, Source, Flavor, Form and Distribution Channel |
Growth Drivers: |
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Pitfalls & Challenges: |
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Plant-based dairy alternatives, including non-dairy ice creams are relatively more expensive than traditional ice creams, which may impede the market demand. The production of non-dairy alternatives involves fortification in order to keep up with the nutritional value offered by conventional dairy products, adding to the manufacturing costs. Several manufacturers are forced to invest in novel manufacturing technologies along with superior-quality ingredients to ensure an improved nutritional profile of the product.
The non-dairy ice cream market size from the chocolate flavor segment is expected to depict a 10.5% CAGR during the forecast timeline. The emergence of new trends in the food sector, such as vegan chocolate, owing to their health benefits, such as low cholesterol and fat, is accelerating the demand for chocolate-based flavorings. In addition to its taste appeal, cocoa is also considered to have significant health benefits due to its high magnesium and iron content. Several leading chocolate manufacturers are thus foraying into the vegan trends with the development of innovative recipes.
The impulse product segment is anticipated to record a 10.5% CAGR through 2032, attributed to the surging young population and the increasing female workforce. However, the fast-paced lifestyles and hectic schedules have popularised on-the-go food products across developed and developing economies. A remarkable growth in the number of impulse buyers credited to the multiple benefits associated with these products, including affordability and convenience will also spur the industry outlook. As proof, according to a surgery conducted by Slickdeals, one of the largest shopping platforms, the average spending of shoppers on impulse purchases has jumped from USD 276 in 2021 to USD 314 in 2022.
The non-dairy ice cream market valuation from supermarkets segment is estimated to reach USD 750 million by 2032. Supermarkets are one of the most preferred choices for shopping, particularly for food and beverage products. They offer numerous benefits to shoppers, including access to a wide variety of products, competitive pricing, a one-stop shopping experience, convenience, and attractive loyalty programs. Significant investments in supermarket infrastructure development and the ongoing expansion of existing supermarket chains will fuel the sales of non-dairy ice creams across this distribution channel. For instance, in June 2022, the U.S. Department of Agriculture (USDA) announced a partnership with the Reinvestment Fund to infuse USD 22.6 million into the improvement of access to healthy foods for underserved communities across the nation.
In terms of revenue, the non-dairy ice cream market share from the singles form segment is poised to surpass USD 1.3 billion by 2032, credited to the increasing consumer interest in customized blend ice creams and novel flavors. These products offer a wide variety of dessert choices to vegan consumers, allowing individuals with dairy or milk allergies to enjoy a cold dessert. The growing health concerns among young children regarding allergies associated with the consumption of cow’s milk are propelling the need for vegan ice creams. Additionally, the ease of consumption and convenient packaging are other criteria driving consumer inclination toward non-dairy ice cream singles.
The North America non-dairy ice cream market analysis will expand at a 10% CAGR till 2032. The increasing consumer awareness and changing dietary preferences are fueling the consumption of plant-based foods and vegan alternatives across the U.S. and Canada. In Canada alone, more than 40% of the population is transitioning to adopting a vegan lifestyle by incorporating plant-based foods. The rapid penetration of vegetarian and flexitarian lifestyles will further complement the industry outlook. Furthermore, the rising prevalence of lactose intolerance risk factors such as celiac disease, bacterial overgrowth, and Crohn’s disease in the U.S. and Canada will accelerate the need for plant-based foods.
Some of the leading companies in the market include
These firms are adopting novel manufacturing technologies to introduce innovative product offerings. For instance, in November 2022, Unilever announced plans to invest in cow-free dairy to reduce the carbon footprint of its ice cream business with the help of more sophisticated precision fermentation technology.
The COVID-19 crisis had a positive impact on the non-dairy ice cream industry. While the unprecedented supply chain disruptions affected the food-supply chain, logistics, farm production, and food processing, the pandemic introduced new opportunities for plant-based food manufacturers. It significantly altered consumer behavior and food preferences with an increased emphasis on functional foods and fortified products. Various consumers worldwide replaced animal-derived foods with vegan products to improve overall health concerns and prevent the potential transmission through meat consumption. Moreover, the high consumption of comfort foods during the lockdown restrictions accelerated the demand for vegan confectioneries.
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