Dairy-Free Ice Cream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Dairy-Free Ice Cream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The dairy-free ice cream market is projected to witness a CAGR of 7.12% over the forecast period (2022-2027).

The COVID-19 crisis has significantly changed the buying behavior of the consumers due to the enhanced awareness of their health and increasing preference for lactose-free/vegan/plant-based foods, including ice creams. The manufacturers of vegetarian products have witnessed an increased growth in these products. Moreover, vegan-related searches increased by around 47% with the onset of the pandemic, paying the way for more brand/product launches in the landscape.

In the short term, growing lactose intolerance and the increasing number of vegetarian consumers are pushing consumers to purchase dairy-free products, while an expanding segment of consumers moving towards a vegan diet is exacerbating the market growth.

On the supply side, increasing production capacities of major companies in the dairy-alternative ingredient space, as well as product development in the form of new and innovative flavors, is providing the fillip for ice cream manufacturers to provide consumers with options on dairy-free ice cream.

Lactose allergies and intolerances are major reasons behind going dairy-free. Especially considering the food allergy statistic, cow's milk allergy is one of the leading food allergies in infants and children. Owing to the growing awareness regarding plant-based dairy-free products, consumers are willing to opt for dairy-free ice cream. This has led key players to invest in their research and development activities in order to come up with dairy-free frozen desserts, including ice creams. Non-dairy frozen desserts, in particular ice creams, have been stocked up on store shelves in recent years, boasting natural ingredients, such as almond milk, soy, and coconut milk, sweetened by ingredients like agave nectar and dried cane syrup instead of sugar and corn syrup. Manufacturers are focusing on developing dairy-free desserts, especially ice creams that are healthy and plant-based with clean labels, taste, and interesting flavor profiles. Gourmet flavors have been gaining popularity in the recent past.

Increasing consumer awareness about health issues associated with lactose in the milk is driving the dairy-free ice cream market size. Other key factors, such as the increase in demand for vegan food, owing to rising health consciousness and the growing vegan population, are also resulting from turning to dairy alternatives. Technological advancements and product innovations for taste improvements to comply with the taste of dairy-based ice cream have provided a positive outlook for product demand. Demand for non-dairy ice creams such as almond and coconut-based ice creams is booming in United States. The trend of maximizing nutrition credentials in dairy-free products such as ice creams by proliferating natural functional ingredients has certainly uplifted the market size in the region.

The dairy-free ice cream market is highly competitive in nature. This is due to the existence of several domestic and international players in this field. The major players in the dairy-free ice cream market include Unilever PLC (Ben & Jerry's), Danone SA, General Mills Inc. (Häagen-Dazs), Tofutti Brands Inc., and Froneri, among others. Key players are majorly focusing on product development and product innovation to meet the consumer's needs by offering a variety in taste and in the product's quality to maintain premiumization.

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