PLANT-BASED MILK: A PASSING TREND OR FOUNDATIONAL SHIFT FOR AGRIBUSINESSES?

Authored by Novus Insights

26/05/2025

Plant-based milk alternatives like oat, soy, and almond milk have gained significant popularity, appearing in grocery stores, cafés, and restaurants. What began as a niche market for vegans and those with lactose intolerance has now become a global trend, with some regions seeing plant-based milk sales surpass those of dairy milk. This shift raises an important question: is plant-based milk just a passing trend, or is it a lasting change that agribusinesses must adapt to? As consumer preferences and environmental concerns evolve, agribusiness market research is essential for making informed strategic decisions and staying competitive.

How Milk Preference and Audience Demographics Change Across the World

1. Years of Use in East-Asian Markets

In East Asian countries like Thailand, Indonesia, and Japan, plant-based milks such as soy and coconut milk have long been integral to diets, offering nutritious and affordable alternatives to dairy. These beverages have deep cultural roots, and their widespread use has opened the door for other plant-based options like almond and oat milk, particularly in urban areas. For agriculture market research, this historical success in East-Asian markets provides insights into the potential growth of plant-based products globally.

2. The West: A Focus on Sustainability and Health

In Western markets, plant-based milk consumption is driven by concerns about sustainability, health, and animal welfare, with younger generations leading the charge. Lactose intolerance and environmental consciousness are key factors, with oat milk becoming the most popular alternative. Agriculture market analysis shows that the rising demand for plant-based milk in the West reflects a shift towards healthier, more sustainable options, prompting agribusinesses to adapt to meet these evolving preferences.

3. India: A Unique Market Perspective

In India, plant-based milk is gaining popularity, especially among younger, health-conscious consumers, but it faces cultural challenges due to the deep-rooted association with dairy, particularly cow’s milk. While plant-based milk is often linked to affluence and Westernized lifestyles, awareness remains limited among older generations. Agribusiness market research highlights that the demand for plant-based alternatives in India is still niche but offers significant market potential, requiring ongoing trend monitoring to adapt to changing consumer behaviors.

Pricing Factor: A Roadblock in Adoption?

While the demand for plant-based milk is growing, pricing remains a significant barrier to wider adoption, particularly in developing countries and among price-sensitive consumers. Plant-based milk is often priced higher than traditional dairy, which can deter many potential buyers.

Factors such as production costs, raw material sourcing, and distribution logistics contribute to the higher price tag. For example, oat milk, which is among the fastest-growing plant-based milk alternatives, requires significant processing compared to dairy milk. Agriculture market research helps businesses identify potential solutions, such as more efficient production methods or ways to streamline the supply chain, which can lower prices and drive adoption.

Key Data Points of Interest for Agribusinesses 

For agribusinesses looking to enter the plant-based milk sector or expand their offerings, here are some key agricultural sector research data points to focus on:

• Market Size and Growth Projections: Understanding the current market size and future projections for plant-based milk in different regions can help businesses identify which markets offer the most potential.
• Consumer Behavior Insights: Data on consumer preferences, including which types of plant-based milk are most popular (e.g., oat, almond, soy) and what factors influence purchasing decisions, can provide critical insights into product development and marketing strategies.
• Competitive Landscape: Research on existing players in the market can reveal gaps in the plant-based milk sector, whether that’s in terms of flavor variety, packaging, or price.
• Regulatory Trends: As plant-based milk alternatives grow in popularity, governments may introduce new regulations regarding labeling, health claims, and sustainability. Staying on top of these regulatory changes is crucial for compliance and market success.

By focusing on these key data points, agribusinesses can make informed decisions that not only keep them competitive, but also allow them to capitalize on emerging opportunities in the plant-based milk market.

How Agribusinesses Can Leverage Market Research for Strategic Decisions

Agribusiness market research plays a pivotal role in helping companies navigate the rapidly changing landscape of the plant-based milk sector. Here's how market research can help agribusinesses make strategic decisions:

• Identifying Market Opportunities: Through comprehensive research, agribusinesses can uncover underserved markets and identify niches in the plant-based milk sector. This allows businesses to develop new products or enter regions where demand is strong.
• Optimizing Marketing Strategies: Market research helps agribusinesses understand consumer preferences and tailor marketing campaigns to target specific demographics, whether that’s health-conscious individuals, environmentally aware consumers, or lactose-intolerant customers.
• Innovating Product Offerings: Data-driven insights into consumer behavior can inspire new innovations in plant-based milk products, from new flavors to unique formulations that cater to specific dietary needs.
• Supply Chain Efficiency: Understanding supply chain dynamics is crucial for ensuring that plant-based milk products are produced and delivered at competitive prices. Market research can identify ways to streamline production processes and reduce costs.

Partner with Novus Insights

As the plant-based milk market grows, staying ahead of trends and consumer preferences is crucial. Agribusinesses looking to capitalize on this shift should partner with Novus Insights, a trusted agribusiness market research firm with over two decades of experience and a proven track record in agriculture market analysis. Our team specializes in delivering data-driven insights to help clients navigate market complexities and stay ahead of industry trends. For more information on how we can help you make informed, profitable decisions, contact us at 91-124-436-6686 or +91 7428 225 350, or email contactus@novusinsights.com. You can also fill out our contact form, and our team will get back to you promptly.