"As consumption stabilises, drive engagement through new usage occasions and indulgent flavour profiles. Reinforce core nutritional benefits to address concerns about nutritional adequacy and strengthen credibility."
Hope Banks Petrikowski, Analyst – Food & Drink
The dairy alternatives category is stabilising, with uptake stagnating and future usage intentions plateauing. As a result, growth will increasingly depend on deepening engagement among existing users rather than recruiting new ones.
Expanding usage occasions presents a clear opportunity to drive frequency. Strong interest in cooking and baking formats, alongside demand for ready-to-eat options, highlights scope for dairy alternatives to integrate more fully into everyday consumption.
At the same time, rising health motivation is creating both opportunities and challenges. While it supports category relevance, ongoing scepticism around nutrient quality and processing risks limiting engagement. Brands that focus on nutritional basics, like high protein and fibre content, and provide transparent explanations of processing will be best placed to build consumer trust.
Sustainability, while still important, is evolving into a secondary differentiator as health and taste take precedence. However, its emotional resonance remains strong. With 75% of category purchasers saying locally sourced ingredients would encourage purchase, brands that shift eco messaging towards local sourcing and production can strengthen emotional connection and enhance appeal.
This Report covers products that are plant-based/vegan alternatives to traditional dairy products, including milk, yogurt, cheese, desserts, cream, quark and ice cream.
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