Germany Dairy Alternatives Market Report 2022

The Germany Dairy Alternatives Market Report 2022 identifies consumers’ attitudes towards dairy alternative products, the impact of COVID-19 on this product category, and possibilities for innovation in the German plant-based milk market. This report covers the Germany Dairy Alternatives market size, market forecast, market segmentation and industry trends for the Dairy Alternatives Market Germany.

Current Market Landscape

Our Dairy Alternatives Germany report shows that increased at-home activity during COVID-19 boosted dairy alternative growth amidst interest in eco-friendly and healthy lifestyles. As consumers are more accustomed to established dairy alternatives (e.g. milk/yogurt alternatives), categories with smaller user bases (e.g. plant-based desserts, cheese/cream alternatives) will experience growing interest and experimentation.

While the vast majority of German dairy users would never completely give up consuming dairy, inclusive on-pack messages targeting flexitarians hold possibilities attract non-core user groups without alienating core users.

Germany Dairy Alternatives Market Share and Key Industry Trends

Despite inflation carrying over from 2022 into 2023, affecting spending power, increased private label competition will democratise access to dairy alternatives and sustainable nutrition to lower-income groups. In response to growing competition, brands are likely to increase product diversity, targeting specific usage occasions (e.g. baking).

High inflation caused by strong demand, rising energy/ingredient prices and supply chain disruptions add price pressure on dairy alternatives. With ‘brand’ scoring low as a purchase driver, financially squeezed Germans are likely to trade down in commodity-based categories (e.g. milk) and switch to private labels.

• 71% of Germans agree there should be more food and drink products that are both healthy and sustainable.
• 55% of Germans agree that dairy alternatives should resemble the taste/texture of dairy products.
• 46% of Germans would find it appealing if products were labelled as ‘plant-based’ rather than ‘vegan’.
• 63% of Germans agree that dairy alternative brands need to support the farmers that produce the ingredients more.

Future Trends in the Market for Dairy Products and Alternatives in Germany

EU implementations to increase organic agriculture and heavy investments by FMCG players in the dairy alternatives space will help to boost sustainable nutrition and catalyse growth further. However, to avoid becoming politicised as the scapegoat for a declining dairy industry, brands can focus on hyperlocalism and proactively elevate the people/communities behind their ingredients, thus boosting the Germany milk substitute consumption.

To remain competitive on the dairy alternatives market Germany despite rising prices, brands must prove their value. For instance, alternatives that mimic features of dairy well (e.g. nutrition/taste), facilitate popular cooking occasions or link environmental to personal benefits can prove a better ‘bang for the buck’.

Read on to discover more details or take a look at all of our Vegan and Plant-Based Market Research.

Quickly Understand

• Market drivers for dairy alternatives, including the shift towards sustainable nutrition and the impact of inflation.
• Types of dairy alternatives used.
• Purchase factors for dairy alternatives.
• Base ingredient associations for almonds, coconut, oats, pea and soy.
• Attitudes and behaviours related to dairy alternatives, including future market opportunities linked to social/environmental sustainability, new usage occasions and positive nutrition.
• Recent product launch activity and innovations.

Covered in this Report

Products: Milk, yogurt, cheese, desserts, cream, quark, ice cream, and more.

Brands: Bauer (GrünKraft), Alpro, Bayernglück, RÜCKER, Oatly, Whole Foods, Miyoko, Activia, Allos, Harvest Moon, Les Petites Pousses, and more.

Expert Analysis from a Specialist in the Field

This report, written by Valentin Thies, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends in the German plant-based milk market, and adds expert context to the numbers.

Dairy alternative brands must prove their value beyond price amidst rising inflation and appeal more to flexitarians to democratise access to sustainable nutrition.

Valentin Thies
Senior Food & Drink Analyst