9 The impact of millennials Whereas consumers of plant-based alternatives earlier were limited to people who needed these types of products, for example vegans or vegetarians and people with special dietary needs, there is today an ever-growing amount of consumers who want and actively choose these products. This general megatrend or what could nearly be described as a global movement has changed the market dynamics for dairy alternatives dramatically. “While a general avoidance of products like red meat and dairy seem to be spread across age groups, the trend toward incorporating vegetarian foods into the diet is skewed to \RXQJHUFRQVXPHUVLQPDQ\FRXQWULHV´VD\V'DYLG-DJR It is quite common for younger consumers, often labeled millennials, to experiment with different styles of eating and the pattern suggests that there will continue to be a strong opportunity for dairy alternatives going forward. “We expect to see considerable growth in the dairy alternatives market for the next few years, practically in all SDUWVRI(XURSH´VD\V'DYLG-DJR³:HDOVRHSHFWWRVHH continued growth in North America, but maybe not quite at the same rate since it already has reached really good levels of penetration. This future growth is more likely than not to come from the added value segments, in other words from cheese, yoghurt, desserts, and increasingly, from ice creams.” Market players and suppliers Although the market is still dominated by a few major players in terms of taking the lead with new ingredients, it is far from saturated and there is certainly room for more brands to tap into consumers’ growing interest in plant-based alternatives. Ingredient suppliers, among them AAK, have also paid great attention to the development and the potential of plant-based alternatives. With a growth for the plant-based dairy segment for the next three years estimated to 10–15 percent CAGR, AAK has made the segment a special focus area within The AAK Way, AAK’s company program for 2017–2019. “We, of course, also want to be part of this global movement and we believe there is a huge potential for plant-based dairy products”, says Henning Villadsen, Marketing Director, Dairy at AAK. “Thanks to improved sensory qualities, an expanded availability and increased sustainability awareness the market is currently booming.” To be able to provide consumers with sustainable, plant-based solutions that makes it easy and attractive to change to a more plant-based and healthy diet, close and progressive partnerships between suppliers and vendors DUHQHHGHGDPRGHOWKDW¿WVYHU\ZHOOZLWK$$.¶VFRQFHSWRI customer co-development. “In our co-development process we bring to the table our expertise, our sustainability commitments and our unique capabilities in oils and fats applications”, says Henning Villadsen. “But to really meet the demands from the market, we need to work side by side with each and every one of our FXVWRPHUVWRGHYHORSVROXWLRQVWKDW¿WWKHLUVSHFL¿FQHHGV By doing so, both our customers and AAK have all the prerequisites to succeed within the market of plant-based dairy products.”
AAK Insight no 4 2017
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