Producers of non-dairy (such as plant-based, microflora, cultured etc) protein bases that are supplied to dairy alternative manufacturers to produce milk, butter, cheese, ice cream and yoghurt alternatives.

Producers of plant-based milk alternatives using ingredients such as almond, cashews, soy, oat, coconut, pea etc.

Producers of plant-based cheese alternatives using ingredients such as coconut, almonds, cashews, soy, hazelnut etc. Startups use their proprietary plant-based cultures for the fermentation process.

Producers of plant-based butter alternatives using ingredients such as almond, avocado and olive oil etc.

Producers of dairy-free ice cream using plant-based milk.

Producers of dairy-free yogurt using plant-based milk and cultures.

Producers of plant-based egg alternatives for general consumption (used in baking and cooking) using pulses such as mung beans, peas, soy, chickpeas etc.

A booming food and beverage segment with a history as rich and varied as its present-day product offerings.

Plant-based Dairy & Egg

Overview

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  <h3>
    Plant-based dairy and eggs to lead an animal-free food future
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  <p>
    Consumers across the US and beyond are already well acquainted with plant-based dairy products. From the first commercial soy milk facility in 1917 in New York to Sweden&rsquo;s Oatly oat milk taking coffee shop culture by storm, consumers worldwide have demonstrated an almost singular openness to experimenting with plant-based substitutes. Now experimentation is beginning to expand beyond the grocery store milk aisle to all aspects of dairy and egg products.&nbsp;
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    Plant-based dairy and egg products currently under development incorporate a broad range of ingredients, including peas, mung beans, soybeans, chickpeas, almonds, coconut, sunflowers, potato and sesame, among others. These alternatives are vying to replace traditional cheese, yogurt, ice cream, butter, spreads, and creamers, while a wave of new startups are attempting to produce a substitute for chicken eggs.&nbsp;
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    This revolution is being driven by an increasing focus on health, animal welfare, and climate change. The recent emergence of zoonotic diseases, such as the Covid-19 pandemic and the African swine fever, have also drawn attention to the growing animal-free food production industry, with plant-based foods taking center stage.&nbsp;
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  <p>
    
    In addition, there have also been recent developments in the field of cell cultured milk production, with a handful of companies leveraging on cellular agriculture to not only develop sustainable alternatives to cow&rsquo;s milk, but also human breast milk. These products have not been commercialised as yet, and need to overcome regulatory hurdles as well as cost implications before reaching the market. 
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US plant-based dairy and egg market to reach USD 5.4-8.9 billion by 2026

Market Sizing

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  <ul>
    <li>
      <p>
        Sales of plant-based dairy spiked 75.3% YoY as US lockdowns began in mid-March 2020, softening to a still-strong 17.2% by mid-November 2020.
      </p>
    </li>
  </ul>
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    <li>
      <p>
        Sales of plant-based cheese also saw a 95% YoY spike in mid-March 2020 which remained elevated around 54% YoY over mid-April 2020.
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      <p>
        In August 2020, Eat JUST reported plant-based egg sales equivalent to 50 million chicken eggs since launching in April 2019. 
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  </ul>
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COVID19-IMPACT

Market Mapping

<p>Most plant-based dairy startups focus on milk and cheese substitutes while plant-based butter has attracted less activity in part due to consumer aversion to plant-based fats over health concerns. Disruptors attempting to develop plant-based dairy alternatives from new ingredients—beyond a standard set of soy, almond, cashew, coconut and oats—have attracted significantly more funding compared to the rest of the industry.</p><p>More than half of the plant-based dairy startups we analyzed have brought a product to market with a few companies reaching the growth stage of business development. The plant-based egg industry, on the other hand, is far less developed with fewer new startups and only a handful successfully bringing a product to market.</p>

The Disruptors

<p>The three most-highly funded startups in the plant-based dairy industry have already accumulated more than USD 800 million in total funding, with Perfect Day claiming USD 361.5 million of that figure for itself, followed by Califia Farms at USD 340 million, and Ripple Foods with USD 186.3 million. All three startups have brought their products to market across segments including plant-based milk, cheese, ice cream, and yogurt.</p><p>Established plant-based meat companies are also leveraging their expertise to produce plant-based dairy. NotCo launched a plant-based milk product in the US in November 2020, and Impossible Foods announced the development of plant-based milk in October 2020.</p><p>Only two plant-based egg startups have launched their products, a leading cause of the lack of funding in the sector. Eat JUST leads the industry with USD 220 million in funding and a  widely available “JUST Egg” flagship product that has already sold more than 50 million egg equivalents since its 2019 launch. Eat JUST’s work in developing cell cultured meat is also a significant reason for its industry-leading fundraising efforts, becoming the first global firm to bring a cell cultured meat product to market in Singapore in December 2020.</p>

Disruptor Funding History

The Incumbents

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  <h3>
    Existing R&amp;D capabilities enable incumbents to develop products in-house
  </h3>
  <p>
    <b>Plant-based dairy:</b>
    &nbsp;The industry is crowded with a number of companies producing plant-based dairy alternatives using soy, almond, coconut, and oats. Most companies have turned to almond milk as the main protein source for their plant-based dairy products, pivoting from the initial industry favorite of soy milk. In recent years oat milk has gained traction in the market due to the similar taste and texture to cow&rsquo;s milk.
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  <p>
    Major consumer packaged goods manufacturers such as Nestl&eacute; have moved on to pea-based beverages which have a similar nutritional profile to cow&rsquo;s milk and are favored by many disruptors in the industry.
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  <p>
    <b>Plant-based egg:</b>
    &nbsp;Plant-based eggs are a relatively new industry compared to plant-based dairy and therefore has fewer incumbents. No company has brought an all-purpose complete plant-based egg substitute to market so far.
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Plant-based Dairy & Egg

Plant-based Dairy & Egg

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