Consumers are now more aware and cautious than ever before when purchasing food products. They read the nutritional information on the package label and try to understand the impact of the packaging materials on human health and the planet. Sustainability, health benefits, product quality, lifestyle, dietary choices (e.g., vegan), etc., are some of the other factors influencing purchasing behavior. Consumers’ perception about the sustainability of food production and processing systems influences the choices of dairy and plant-based dairy alternatives.
At times, there are differences about perception of sustainability between consumer and dairy industry. According to the United Nations, sustainable development includes economic (profit), social (people), and environmental (planet) sustainability. The dairy industry worldwide focuses on minimizing product losses, preserving the environment, and using natural resources responsibly, while consumers may place greater emphasis on how food production systems benefit and affect the well-being of people, animals, and the environment.
The global dairy market size was valued at $481.08 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 2.5% from 2020 to 2027. Likewise, the market for plant-based dairy alternatives is growing at a CAGR of 13.3% with projected market value of $53.9 billion in 2028. Since both dairy and plant-based products have their own benefits, consumers’ perception of which category has more pros or less negative impact on environment, plays a key role in its growth.