Oats gain most ground in plant-based dairy

It is no longer an uncommon thought that vegetable substitutes for dairy products are gaining ground. The Swedish oat drink producer Oatly even sees the market so positively that it has taken the step to the stock exchange in New York. Oats are also the fastest growing segment in the Netherlands when it comes to alternatives to cow's milk. How popular are these plant-based variants?

In the Netherlands, oats are the fastest growing segment and the most important ingredient for plant-based milk variants. That writes ABN Amro. In the period from 2017 to 2020, the share of oats, compared to other vegetable ingredients such as soy, almond or rice, increased from 9% to 34%. In addition, total supermarket sales of plant-based drinks increased by 31% last year. And, because regular milk increased by only 7%, the share of plant-based variants rose from 11% to 13%, the bank concludes.

Innovations
A lot of innovation is taking place in the market for vegetable variants for dairy. Especially to ensure that a vegetable variant resembles traditional milk as much as possible. The Nutrition Center states, ABN Amro reports, that alternative products currently do not yet provide the health benefits of traditional dairy. "Many innovations are therefore aimed at meeting two important factors for consumers: health and taste. One of the forerunners in this is Impossible Foods. This company is working on a synthetic drink that should closely resemble traditional milk in taste and texture."

ABN Amro also states that there is also growth potential for vegetable variants of cottage cheese, yogurt and desserts. "This can be seen in the increase in sales. For example, according to market research agency IRI, sales of vegetable variants of cottage cheese rose by almost 2019% in 50. In 2020, this was even a growth of almost 70%." The most commonly used ingredient for alternative yogurt, cottage cheese or desserts is soy, although oats are on the rise here too.

vegan lifestyle
"Growth is mainly driven by consumers' desire to eat and drink vegan more often. As a result, investors are now actively supporting producers of alternatives to 'regular' dairy," the bank's analysts explain. "Advertising and marketing efforts and consumer willingness to try new alternative products are further contributing to the growth of this segment."

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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