Fast moving consumer goods industry is witnessing shiftsin consumer buying patterns and this creates an all-time demand for changing products and offering alternatives. Moreover, as income of majority of population across countries increase, the willingness to buy better and health-conscious products is also increasing. Dairy and food products have experienced major changes in buying behavior and total spending. Some of the key factors driving food product changes include familiarity with taste and price, preference for no artificial ingredients and willing to pay for it, demand for sustainably produced food, accessibility of good quality food, and influence of personal healthcare professional. According to 2018 Food and Health Survey Report, 78% indicate making a change in their eating habitsas a result of conversations with doctors and dieticians. Though there are multiple alternations in the food products; dairy alternatives, dietary fibers, plant-based meat, and plant-based protein products are recently gaining attraction from both suppliers’ and buyers’ front.
Diary alternatives are such FMCG products which are gaining traction due to increasing health-consciousness of young population. There are numerous reasons for shift towards dairy alternatives including reduce impact on environment, fortified nutritious ingredients in dairy alternatives, and increasing cases for milk related allergies. Some of the most lucrative and demanded replacements for milk products include almond milk, soy milk, coconut milk, rice milk, nutritional yeast, soft and hard cheese, nut milk ice-creams, dairy-free yogurts, and fruit-based sorbets. Some of the major suppliers of dairy alternatives include Danone, Ripple Foods, Hudson River Farms, and SunOpta. According to market research companies the dairy alternatives market is expected to grow at a CAGR of 10-14% during the next 5 years.
Dietary fiber is another area of growth for food FMCG products. Dietaryfiber is a term that is used for plant-based carbohydrates. Drivers for demand for dietary fibers include increased focus on weight maintenance, concerns for avoiding cardiovascular diseases, and positive impacts of dietary fiber for gastrointestinal functions. Various supplements and nutraceutical options are available in market for dietary fibers. Some of the demanded products are oats, barn flakes, edible seeds, muesli, low fat yogurts, dried fruits (apple, carrots, and oranges), and nut-based flakes. Some of the suppliers leading the market involve Beneo, ADM, Lonza, Kellogg’s, and Cargill. The market is expected to witness optimistic growth with a CAGR of 12-15% in coming years.
Plant based meat and proteins are new concept as people around world are turning vegan to balance the ecosystem while not compromising on traditional taste of meat. With the heightened focus on eating more plant-based foods, food manufacturers have been developing plant-based animal foods such as beef, tuna, shrimps, and eggs. Most of these plant-based meats are made of soy proteins or mung bean proteins, made by fermentation of genetically engineered yeasts that helps in maintaining the taste and look of meat.Growth for these markets is in nascent phases but the demand from different geographies amid these pandemic situations is expected to increases. Some of the suppliers are New Wave Foods, Loma Linda, Impossible Foods, Gardein, Beyond Meat, and Maple Leaf Foods.
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