Plant-based dairy was continuing to see strong growth in 2022, driven mainly by other plant-based milk. Plant-based yoghurt and cheese were also seeing dynamic growth, but still remain very small categories compared to plant-based milk. The decline in soy drinks sales seems to have been halted, although only very modest sales increases will be seen in this category over 2022-2027, with other plant-based milk, plant-based yoghurt and cheese continuing to record much more dynamic performances.
This report comes in PPT.
The plant-based dairy market, while still relatively small, is enjoying strong growth in Latin America, appealing in particular to vegans, vegetarians, flexitarians and lactose-intolerant consumers. However, with health consciousness having increased during the pandemic, many consumers have been looking to improve their diets in order to help maintain good health. The main growth driver continues to be other plant-based milk, although the much smaller plant-based yoghurt and cheese categories also continue to see dynamic growth.
For products that tend to have a USP revolving around healthiness, consumer concerns about the sugar content in some plant-based milks has seen industry players increasingly launching no-added-sugar variants. For example, Danone’s Silk brand introduced soy-, almond-, rice-, oat- and coconut-based milk without added sugars or artificial sweeteners in Mexico.
The pandemic saw strong growth in the e-commerce value sales share, which more than doubled between 2019 and 2020, and it also made further strong gains in the next two years as well. However, it still remains a very small distribution channel, with a share of just 2% in the region as a whole in 2022. Small local grocers remains the biggest individual channel (40%), despite losing share in recent years, with consumers attracted by the one-stop shopping and competitive prices offered by modern grocery retailers.
Plant-based dairy will continue to see strong growth in Latin America over the forecast period, with other plant-based milk continuing to account for the bulk of the actual new value sales added in 2022-2027, but with plant-based yoghurt and cheese also seeing strong growth. Soy drinks will record positive, if only modest, growth, as players successfully work to combat the negative image that these products had been developing.
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