VEGAN YOGURT MARKET ANALYSIS

Market Size and Trends

The vegan yogurt market is estimated to be valued at USD 3.63 Bn in 2024 and is expected to reach USD 11.98 Bn by 2031, growing at a compound annual growth rate (CAGR) of 18.6% from 2024 to 2031.

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The vegan yogurt market is expected to witness significant growth over the forecast period. Factors such as increasing health consciousness among consumers, rising awareness about dairy-free and plant-based diets, growing vegan population and lactose intolerance cases are expected to drive the demand for vegan yogurt. In addition, rising disposable income globally and changing dietary patterns are further expected to support the growth of the vegan yogurt market globally between 2024 and 2031.

Health-conscious Consumers

The changing food preferences and focus on health among millennial consumers have been a major driver for the growth of the vegan yogurt market. Younger consumers today are more concerned about the ingredients in their food and the impact on the environment. With increasing awareness about diseases like diabetes and obesity, people are seeking out dairy alternatives that are low in sugar and cholesterol-free. Vegan yogurt provides a nutritious option for those following a plant-based or vegan diet as it contains probiotics for gut and digestive health similar to dairy yogurt. The clean label and lack of animal products make vegan yogurt an attractive choice for health-conscious shoppers who scrutinize labels. Food allergies and intolerances too are driving some consumers to dairy-free alternatives like vegan yogurts made from coconut, almonds or soy. As people strive to make wiser choices in their diet, the vegan yogurt market has benefited from this trend of consumers focusing on wellness and clean eating.

Market Concentration and Competitive Landscape

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The growing preference for plant-based food and lifestyle has massively propelled the demand for vegan yogurt. Ethics and sustainability are becoming important factors for an increasing number of shoppers who seek products that are better for animals and the planet. With documentaries and trends bringing awareness about issues in the dairy industry and animal agriculture, more people are switching to a vegan or vegetarian diet. At the same time, flexible or reduced-meat diets are encouraging the exploration of plant-based milk substitutes. Vegan yogurt serves as a perfect swap for dairy yogurt in terms of taste and texture for these flexitarians. Product innovation catering to this demand has seen the launch of several varieties of vegan yogurt made from ingredients like coconut, almonds, cashew, soy, and oats. Cultural diversity has also fuelled growth as immigrants seek familiar yogurt flavors within their adopted vegan or lactose-free diets. The rising consciousness around health, ethics, and the environment has elevated demand for plant-based foods including vegan yogurts significantly.

Key Takeaways of Analyst:

The vegan yogurt market has seen significant growth in recent years and is poised for further expansion. Rising health consciousness among consumers is a major driver, as plant-based products are perceived as more nutritious and sustainable options. Moreover, growth in lactose intolerance rates is increasing the appeal of non-dairy yogurts. However, high production costs remain a restraint as vegan yogurts require specialized ingredients and processes.

North America currently dominates the vegan yogurt market share due to stringent regulations around animal welfare and a culture of nutritious diets. Asia Pacific is expected to see the fastest gains, however, supported by the region's health and wellness trend as well as proliferation of product choices from startups and major brands. The wealth of product innovations is a notable opportunity, such as the development of yogurt alternatives made from almond, coconut, oat, and soy bases which capture diverse consumer preferences.

Highlighting the functional health benefits of probiotics and protein content can further boost demand. At the same time, improving the taste, texture and creaminess of vegan yogurts to closely mimic dairy options remain an ongoing challenge yet opportunity for product refinement.

Market Challenges and Opportunities:

• Challenges: Higher price of vegan yogurts: One of the key challenges faced by the vegan yogurt market is the comparatively higher price of vegan yogurts versus regular dairy yogurts. As vegan alternatives require specialized plant-based ingredients and production processes, the final costs are often significantly greater. In addition, many consumers are still unfamiliar with vegan products and skeptical about their taste and nutrition. Establishing brand recognition and educating people about the advantages of vegan options take time.
• Opportunities: Product innovation and new flavors: Product innovation and new flavors present a significant opportunity for growth in the vegan yogurt market. As consumers become increasingly health-conscious and environmentally friendly, the demand for plant-based foods will continue rising. According to data from the United Nations' Food and Agriculture Organization, the sales of vegan food increased by 250% from 2014 to 2019 due to rising awareness of nutrition, sustainability and ethical values. Vegan yogurt companies that experiment with unique flavors, ingredients, and textures will be able to capture more market share and attract new customers. Offering exotic and international flavors can appeal to adventure-seeking consumers. Developing protein-rich yogurts made from ingredients like lentils, chickpeas, or nuts satisfy the demand for non-dairy options that provide similar nutritional benefits to dairy. Creating varieties with intriguing mix-ins like granola, seeds or fruit fillings give consumers exciting new combinations to explore. Some innovative companies are even developing vegan yogurts that mimic properties of dairy yogurt like thickness through use of novel plant-based stabilizers.

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Soy has established itself as the most popular source for vegan yogurt due to its nutritional value and adaptability. The soy segment is expected to hold 45.2% of the market share in 2024. Soy yogurt is highly sought after due to its protein content, with a single serving providing nearly as much protein as cow's milk yogurt but without any animal-derived ingredients. This makes soy yogurt an attractive dairy alternative for health-conscious and flexitarian consumers.  Soy is also a very versatile ingredient that allows for innovative product development. Manufacturers are able to introduce soy yogurt in myriad flavors that appeal to both children and adults. Popular flavor variants include fruit mixtures, chocolate, vanilla, and coffee among others. This wide array of product choices keeps soy yogurt relevant to evolving consumer tastes. Another factor driving soy yogurt's market dominance is its resemblance to dairy yogurt in terms of texture and mouthfeel. The smooth and creamy texture of soy yogurt makes it a fitting substitute for people transitioning to non-dairy options or following plant-based diets. Its neutral taste also means it works well blended into recipes or as a snack on its own. Due to ongoing investments in research and development, soy yogurt producers are addressing previous criticisms around artificial flavors and sweeteners. New product lines offer cleaner organic and natural ingredients with little to no added sugars. These improved formulations are winning over more consumers and sustaining soy's position as the largest source category.  By virtue of its health halo, innovative varieties, and dairy-like experience, soy yogurt looks set to remain the vegan yogurt source of choice for both new and experienced plant-based consumers in the future as well.

Insights by Distribution Channel: Hypermarket/supermarket contributes the highest share of the market due to expansive product range and consistent availability

When it comes to vegan yogurt distribution, hypermarkets and supermarkets is expected to hold 35.5% of the market share in 2024, due to their ability to stock a comprehensive selection under one roof. These large-format stores devote considerable shelf space to various vegan yogurt brands, varieties, and package sizes. Shoppers can choose from dozens of options to suit different tastes and dietary preferences all in a single shopping trip. The scale and buying power of supermarkets allow them to procure innovative products from both national labels as well as local artisanal producers. This diverse assortment caters to consumers seeking novel flavors or specialized formulations like gluten-free, low sugar, and high protein varieties. The expansive offerings make supermarkets a one-stop-shop for vegan yogurt fans. As veganism grows in popularity, many shoppers prefer stocking their refrigerators with vegan staples during routine supermarket trips instead of frequenting specialized stores. Supermarkets thus provide a convenient purchasing channel for both committed vegans and occasional users seeking to reduce animal product consumption. Their always-stocked aisles ensure people never face stockouts of their favorite brands. The consistent availability of multiple vegan yogurt choices at hypermarkets and supermarkets has cemented their status as the dominant distribution format. Their resilient supply lines and cross-category appeal are likely to sustain supermarket dominance as the vegan yogurt market landscape evolves in the future.

Regional Insights

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North America has established itself as the dominant region in the global vegan yogurt market. The region is estimated to account for 34.9% of the market share in 2024. The vegan food movement has seen tremendous growth in the U.S. and Canada in recent years, driven by rising health and wellness trends as well as increasing awareness about the environmental and ethical benefits of a plant-based diet. Major yogurt manufacturers already have a strong foothold in the region and are quick to launch vegan yogurt brands and flavors. American consumers are willing to pay a slight premium for vegan products perceived as healthier alternatives to dairy, giving brands an opportunity to charge prices higher than conventional yogurts. With private labels and specialist brands proliferating on supermarket shelves, the availability and visibility of vegan yogurts have increased multifold in the region.

The Asia Pacific vegan yogurt market is poised to be the fastest growing market for vegan yogurt. While dairy consumption remains relatively high across many Asian nations, the rising affluence of the middle class is coinciding with a shift towards more flexitarian and health-conscious lifestyles. Markets like India have a large percentage of the population following lactose intolerance and a plant-based diet for religious or ethical reasons. Major international players are eyeing opportunities in the region and are introducing innovative vegan products tailored to Asian palates. Local startups in countries like Thailand and China are also bringing artisanal vegan yogurt flavors unique to the local cuisine. As awareness about veganism spreads through social media and other digital platforms, the Asia Pacific marketplace for vegan yogurt is positioned for exponential expansion in the coming years.

Market Report Scope

Key Developments

• In February 2024, Danone Canada launched Silk Greek-Style Yogurt with locally sourced pea protein
• In January 2024, Nature's Fynd launched Fy Yogurt, the world's first dairy-free yogurt made from a sustainable fungi protein called Fy. The yogurt is available in strawberry, peach, and vanilla flavors, and contains 8 grams of protein, 4 grams of fiber, and live active cultures. It's also free of allergens like nuts, soy, and gluten.
• In July 2023, the German brand Müller launched plant-based corner yogurts and rice pudding in the UK.
• In March 2023, So Delicious Dairy Free launched a new coconut milk yogurt alternative with 0 grams of added sugar. This yogurt is sweetened with fruit instead of added sugar.

*Definition: The vegan yogurt market caters to health-conscious consumers who are seeking non-dairy and plant-based yogurt alternatives. Typical products in this market include soy, coconut, almond, and oat-based yogurts that provide the texture and flavor of regular dairy yogurt while being lactose-free and devoid of animal products. These vegan yogurts are a good source of protein and probiotics and come in various flavors to appease different tastes.

Market Segmentation

• Source Insights (Revenue, USD Bn, 2019 - 2031)
  • Soy
  • Almond
  • Oats
  • Coconut
  • Others
• Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Hypermarket/Supermarket
  • Convenience Stores
  • Specialty Stores
  • Online
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Met Foods
  • Cocos Organic
  • Hain Celestial
  • EasiYo Products Limited
  • Danone
  • General Mills Inc.
  • Stonyfield Farm, Inc.
  • Daiya Foods Inc
  • Good Karma Foods, Inc.
  • Hudson River Foods
  • NANCY'S
  • Kite Hill
  • COYO Pty Ltd.
  • Nush Foods
  • Chobani, LLC
  • Barambah Organics Pty Ltd
  • Blue Diamond Growers
  • Dean Foods
  • General Mills Inc.
  • Granarolo S.P.A.