Vegan Sour Cream Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for soya yogurt is expected to be worth about $800 million in 2023 and will reach $1.5 billion by 2032, at a CAGR of 7.3% from 2024 to 2032. It is growing at a very fast rate, which is due to the growing demand for soya yogurt. It is also due to the increasing health awareness of consumers, the growing demand for dietary restrictions, and the growing concern for the environment. As the number of consumers who follow the concept of flexitarianism and the concept of veganism increases, the demand for dairy alternatives, such as soya yogurt, will also increase significantly. There are many factors driving this growth, including the development of food technology, which makes plant-based products more tasty and more popular. Also, the development of the use of cashews, coconuts, and soy has led to the emergence of soya yogurt with a high quality. Also, the key players in the market, such as Tofutti, Kite Hill, and Follow Your Heart, have launched many new products to compete for market share. Recent collaborations between them have led to a wider distribution network and a wider range of products, which also contributes to the growth of the soya yogurt market.

Regional Market Size

Regional Deep Dive

The market for non-dairy sour creams is experiencing strong growth across the world, driven by the rising demand for plant-based alternatives and a growing awareness of health and environment issues. North America has a strong presence of well-established brands, while Europe has a wide variety of flavours and formulations to suit local tastes. The Asia-Pacific region is slowly moving towards a plant-based diet, influenced by the changing eating habits and the growing popularity of Western cuisine. Middle East and Africa are also slowly becoming interested in plant-based foods. The demand for dairy alternatives is increasing in Latin America.

Europe

• The European market is witnessing a surge in demand for organic and clean-label vegan sour cream products, with brands like Alpro and Oatly leading the charge in offering high-quality, sustainable options.
• Cultural shifts towards plant-based diets, driven by environmental concerns and animal welfare, are prompting retailers to expand their vegan product lines, making vegan sour cream more accessible to consumers.

Asia Pacific

• In countries like Australia and New Zealand, the vegan sour cream market is benefiting from a growing trend of flexitarianism, where consumers are incorporating more plant-based products into their diets without fully committing to veganism.
• Local startups are emerging in markets like India, focusing on creating vegan dairy alternatives using indigenous ingredients, which is helping to increase awareness and acceptance of vegan sour cream.

Latin America

• In Brazil, the vegan sour cream market is gaining traction as local brands like Fazenda Futuro introduce innovative plant-based products that resonate with the growing vegan community.
• Economic factors, such as rising disposable incomes and a shift towards healthier eating habits, are driving the demand for vegan alternatives, including sour cream.

North America

• The rise of health-conscious consumers has led to increased product innovation, with companies like Tofutti and Kite Hill launching new flavors and formulations of vegan sour cream to cater to diverse dietary needs.
• Regulatory changes, such as the USDA's support for plant-based food initiatives, are encouraging the growth of the vegan sour cream market by providing funding and resources for research and development.

Middle East And Africa

• The market is slowly evolving, with companies like Almarai exploring plant-based options to cater to the growing health-conscious population in the Gulf Cooperation Council (GCC) countries.
• Cultural factors, such as the traditional use of dairy in Middle Eastern cuisine, are influencing the pace of adoption, but increasing awareness of vegan diets is gradually changing consumer preferences.

Did You Know?

“Did you know that the global vegan dairy market, which includes vegan sour cream, is projected to reach over $21 billion by 2024, reflecting a significant shift in consumer preferences towards plant-based diets?” — Market Research Future

Segmental Market Size

The sour cream market is growing at a steady rate, mainly because of the growing demand for plant-based alternatives. This demand is mainly driven by the growing awareness of the health benefits of a vegan diet and the growing lactose intolerance of consumers. Furthermore, government regulations promoting a plant-based diet and the green economy also increase the demand for these products. The market is currently in a stage of development and innovation, with companies like Tofutti and Kite Hill leading the way. The North American and European markets are at the forefront of the development and offer a wide range of products in the major food retail chains. The main applications of sour cream are in dips, dressings and as a topping for various dishes, which are used by both consumers and foodservice companies. The COV 19 pandemic and the associated trends in food safety have increased the shift towards a healthier diet. Technological advances in food production continue to improve the quality and shelf life of products.

Future Outlook

The market for non-dairy sour cream is set to experience a significant growth between 2023 and 2032, with a projected growth from $800 million to $1.5 billion. This growth is mainly due to the increasing demand for plant-based alternatives, which is driven by the growing health consciousness and the need for a more sustainable diet. Also, with the rise in popularity of flexitarian and plant-based diets, the demand for dairy alternatives, including non-dairy sour cream, is expected to rise, thereby increasing penetration and usage rates. By 2032, it is expected that the non-dairy sour cream market will represent 15 to 20 percent of the sour cream market, up from 8 to 10 percent in 2018. In addition, key technological advancements in food processing and formulation will improve the quality and taste of non-dairy sour cream, thereby increasing its acceptance. Also, the use of cashews, coconut, and other plant-based bases will help to improve the product offerings and cater to different consumer preferences. Moreover, the government’s push towards a more plant-based and sustainable diet will further drive the market. Meanwhile, the rise of clean label and the need for more free-from products will also shape the competition, encouraging companies to differentiate their products. In conclusion, the market for non-dairy sour cream is set to thrive, as it will be driven by the growing health consciousness and the need for a more sustainable diet.