The soy and almond milk production industry has flourished in the five years to 2012, with revenue expected to rise by an average of 6.8% per year, according to new research.
Operators have thrived as Americans have become more health conscious and willing to spend money on healthy food and drinks.
According to industry analyst, Mary Nanfelt: “Dairy alternative beverages are substitutes for cow's milk, and many Americans have demanded these products because of their dietary restrictions such as veganism and lactose intolerance.”
While revenue has increased, dairy alternative beverage producers have faced increased competition from other beverages, such as organic cow's milk.
The industry has also experienced an increase is the cost of production, as key ingredients, such as soybeans, have become more expensive. In 2012 alone, revenue is estimated to rise 8.4% to $1.5bn, as more Americans buy industry products because of their nutritional qualities.
From 2012-2017, industry revenue is projected to rise again. As more Americans demand healthy goods, dairy alternative beverages will likely fly off the shelves. In addition, as the economy continues to recover, consumer spending will increase and more consumers will be willing to splurge on specialty goods such as almond and coconut milk.
Nanfelt adds: “The price of ingredients will also continue to fluctuate, influencing industry performance.” As demand and revenue grow for the soy and almond milk production industry, firm numbers are forecast to increase. From 2012-2017, the number of companies is expected to increase at an average rate of 4% per year to 17 companies.
IBISWorld expects new entrants will focus on niche markets such as coconut, hemp and oat milk. The soy milk market is quite saturated, so more opportunities lie in the less developed product segments. Major players Dean Foods Company and Blue Diamond Growers are expected to perform well in the coming years, with smaller firms like Hain Celestial Group and Eden Foods also set to benefit from strong demand.
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