Rise of Plant-Based Milk Market in India

Every time you walk into a supermarket, you notice that the shelves of the refrigerator section are lined with plant-based milk products such as almond milk, soy milk, oats milk, cashew milk, even with milk made of peas, rice, and coconut.

What is plant-based milk?

Plant-based milk is a non-dairy milk that is made from plant extracts like soy, nuts, coconut, rice – dissolved and disintegrated in water as a base. It includes nutrients such as calcium, essential minerals, Omega-3 fatty acid and vitamins like A, D and B12. 

Reasons for opting non-dairy alternatives

Veganism is making an entry into the Indian market and there is a growing demand for plant-based milk due to the increased focus on improving dietary lifestyles and consumer inclination towards low-fat milk beverages. It also works as an alternative to individual who have lactose intolerance. Environmentally conscious individuals may not be keen on buying animal milk due to the massive carbon footprint from animal rearing and dairy farming. There is an upward rise in animal welfare activism and people may have ethical issues about consuming animal milk because of the alleged animal rights abuse involved in deriving animal milk.

Market overview

According to Businesswire, Indian dairy alternative market stood at $20.9 million in 2018 and is projected to grow at a CAGR of 20.7% to reach $63.9 million by 2024.

Owing to the rise in the online grocery market and various sales channels, the plant-based milk is easily available, boosting the growth of the market across India. 

In 2018, soymilk segment captured the most market and it is expected to maintain its dominance by reason of high awareness and easy availability due to a large number of players. Also, almond milk is the second most-consumed plant-based milk in India.

Sofit is the market leader in the Indian soymilk market and has grown at an estimated 20% CAGR over the past 10 years.

Northern part of India accounted for about 40% of the Indian dairy alternative market share in 2018, as a result of increasing consciousness towards health and wellness, need for physical fitness in the region, changing lifestyle of consumers and easy availability of the beverage. Along with this, customers in North India are comparatively less price conscious as well.  

With a vegetarian population of about 30% in India, many multinational companies and startups are entering the plant-based milk market in India. New Vegan restaurants are at a rise in urban India as well as many celebrities have adopted veganism, leads to the growth of the vegan food market. Workshops are also conducted where people share their veganism experience and the changes it’s brought into their lives.

Challenges faced

Plant-based milk is priced significantly higher than regular dairy milk, thus pricing is one of the biggest challenges for players in this market. Also, given the strong positive perception about the health benefits of milk by Indian consumers, it is challenging to convince them and reach to a wider audience. The knowledge about dairy alternatives is hard to procure and is not easily accessible to the population.

Indian Market Players

Conclusion

The plant-based milk market is a niche segment with opportunities witnessing a year-on-year growth due to the growing interest of Indian consumers towards the adoption of a vegan lifestyle. Thanks to various companies providing such alternatives, Indians can get access plant-based products too.