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Insight of the Day: How plant milks are pushing for further innovation in specialty coffee

Writer's picture: InsightTrendsWorldInsightTrendsWorld

Detailed Findings:

  • The global plant milk industry is projected to reach US $21 billion by 2026.

  • Oat milk, once dominant in specialty coffee shops, is facing backlash due to concerns over its nutritional value (high sugar, low protein, processed ingredients).

  • Consumer demand is shifting towards plant milks that offer sustainability, health benefits, and quality.

  • The rise of veganism and awareness of dairy's environmental impact are driving growth in the plant milk market.

  • Plant-based food retail sales grew to US $29 billion in 2023, with alternative milks holding a 15% market share.

  • Barista-formulated plant milks have emerged to meet the needs of coffee professionals.

  • The plant milk market is becoming saturated, requiring brands to differentiate themselves through taste, nutrition, functionality, sustainability, and branding.

  • Recent health concerns have led to decreased demand for oat, almond, and soy milks.

  • Millennials and Gen Z are particularly focused on the health and environmental impact of their food choices.

  • Clean-label products saw an 8% increase in sales in the last year.

  • Pea milk is emerging as a strong contender due to its neutral taste, creamy texture, high protein, low sugar, and sustainability.

  • Sproud, a pea milk brand, launched a "Barista Zero" range with no added sugar or sweeteners.

  • Innovation is crucial for growth in the plant milk market, with brands almost twice as likely to grow overall sales when innovative product sales increase.

  • Plant milks must meet baristas' standards for flavor, texture, foamability, and latte art performance.

  • Sproud is the first and only global food company to receive ISO 26000 status, demonstrating its commitment to social responsibility.

Key Takeaway:

The plant milk market is undergoing a transformation driven by consumer demand for healthier, more sustainable options that don't compromise on quality or performance in specialty coffee, leading to innovation and the rise of new ingredients like pea protein.

Main Trend:

The Evolution of Plant Milks: Beyond Dairy Alternatives to Health and Performance Beverages

Description of the Trend:

This trend reflects a shift in the perception of plant milks from simply being dairy substitutes to becoming beverages valued for their own nutritional benefits, sustainability, and performance qualities, particularly in the context of specialty coffee. Consumers are no longer just looking for a non-dairy option; they are seeking out plant milks that are healthy, environmentally friendly, and meet the high standards of baristas for taste, texture, and foamability.

Consumer Motivation:

  • Health and wellness:  Concerns about sugar content, protein levels, and overall nutritional value of plant milks.

  • Environmental sustainability:  Awareness of the environmental impact of different plant milk ingredients (water usage, emissions, land use).

  • Ethical considerations:  Veganism and concerns about animal welfare in the dairy industry.

  • Taste and performance:  Desire for plant milks that taste good and perform well in coffee, especially for latte art.

  • Clean label: Preference for products with minimal processing and recognizable ingredients.

What is Driving the Trend:

  • Increased consumer awareness:  More information available about the health and environmental impacts of food choices.

  • Backlash against oat milk:  Negative publicity surrounding oat milk's nutritional profile.

  • Focus on well-being post-pandemic:  Consumers are prioritizing health and wellness more than ever.

  • Innovation in plant-based ingredients:  Development of new ingredients like pea protein that offer improved nutritional profiles and performance.

  • Demand from specialty coffee industry:  Baristas require plant milks that can meet the demands of latte art and specialty coffee preparation.

Motivation Beyond the Trend:

A desire to make informed and responsible food choices that align with personal health goals, environmental values, and ethical beliefs, without sacrificing taste or quality. A general trend towards more mindful consumption.

Who are the People the Article is Referring To:

Health-conscious consumers, particularly millennials and Gen Z, vegans, environmentally aware individuals, specialty coffee professionals (baristas), and those seeking dairy alternatives.

Description of Consumers the Product or Service the Article is Referring to and What is Their Age:

  • Demographics:  A broad range of consumers, but with a particular focus on millennials and Gen Z, who are more likely to be early adopters of new food trends and are more concerned about health and sustainability. The trend also includes specialty coffee drinkers.

  • Psychographics:  Health-conscious, environmentally aware, and ethically minded individuals. They are informed consumers who research products and are willing to pay a premium for quality and sustainability. They value taste and performance, especially in the context of specialty coffee. They seek clean-label products with transparent ingredient lists.

  • Age:  Primarily 18-45 (Millennials and Gen Z), but also includes older demographics interested in health and sustainability.

Conclusions:

The plant milk market is evolving rapidly to meet changing consumer demands. The future of plant milks lies in offering products that are not only dairy alternatives but also stand-alone beverages with strong nutritional profiles, minimal environmental impact, and excellent performance in coffee. Innovation and a focus on ingredients like pea protein will be key to success in this evolving market.

Implications for Brands:

  • Focus on health and nutrition:  Develop plant milks with improved nutritional profiles (low sugar, high protein, fortified with vitamins).

  • Prioritize sustainability:  Source ingredients responsibly and minimize environmental impact throughout the production process.

  • Invest in R&D:  Explore new ingredients and formulations that offer superior taste, texture, and performance.

  • Target the specialty coffee market:  Develop barista-friendly plant milks that meet the demands of latte art and specialty coffee preparation.

  • Transparency and communication:  Clearly communicate the health and environmental benefits of their products to consumers.

  • Clean label: Minimize processed ingredients and additives.

Implications for Society:

  • Potential for improved public health:  Shift towards healthier plant milk options could contribute to better dietary choices.

  • Reduced environmental impact:  Adoption of more sustainable plant milk options could lessen the environmental footprint of the beverage industry.

  • Increased demand for plant-based ingredients:  Could create new opportunities for farmers and agricultural innovation.

  • Greater awareness of food production and its impact.

Implications for Consumers:

  • Access to healthier and more sustainable plant milk options.

  • Greater choice and variety in the plant milk market.

  • Improved performance of plant milks in coffee.

  • More information to make informed decisions about their consumption.

Implication for Future:

The trend towards healthier, more sustainable, and higher-performing plant milks is likely to continue. We can expect to see further innovation in ingredients, formulations, and processing techniques. The specialty coffee industry will play a significant role in driving demand for plant milks that meet the highest standards of quality and performance.

Consumer Trend (Detailed Description):

The core consumer trend is Health-Conscious and Sustainable Consumption with an Expectation of Quality and Performance. Consumers are increasingly seeking out food and beverage products that align with their values regarding personal health and environmental responsibility. However, they are not willing to compromise on taste, quality, or functionality. They expect plant milks to be nutritious, sustainable, and perform well in coffee, particularly in specialty coffee applications.

Consumer Sub-Trend (Detailed Description):

A significant sub-trend is the Demand for Functional Plant Milks. This refers to plant milks that offer specific health benefits beyond basic nutrition, such as added protein, vitamins, or other functional ingredients. Consumers are looking for plant milks that can contribute to their overall well-being and address specific dietary needs or health goals.

Big Social Trend (Detailed Description):

The overarching social trend is the Mainstreaming of Health and Sustainability. What were once niche concerns are now major considerations for a large segment of the population. Consumers are increasingly aware of the impact of their choices on their own health and the environment, and they are actively seeking out products and brands that align with these values.

Local Trend (Detailed Description):

A relevant local trend is the Specialty Coffee Industry's Embrace of Plant Milks. Specialty coffee shops are increasingly offering a wide variety of plant milks and are demanding products that meet their high standards for taste, texture, and performance in latte art. This trend reflects the growing importance of plant milks within the specialty coffee culture.

Worldwide Social Trend (Detailed Description):

A prominent worldwide social trend is the Global Rise of Flexitarianism and Plant-Based Diets. While not everyone is becoming vegan, a growing number of people worldwide are reducing their meat and dairy consumption and incorporating more plant-based foods into their diets. This shift is driven by health, environmental, and ethical concerns, and it's creating a significant market for plant-based products like alternative milks.

Name of the Big Trend Implied by Article:

The Premiumization of Plant Milks

Name of Big Social Trend Implied by Article:

The Global Shift Towards Conscious Consumption

Social Drive (Detailed Description):

The social drive behind these trends is a desire for Holistic Well-being and Responsible Citizenship. People are increasingly seeking to make choices that are good for their own health, the environment, and society as a whole. They want to feel good about the products they consume, both physically and ethically. This is driven by a growing awareness of the interconnectedness of personal health, environmental sustainability, and social responsibility.

Learnings for Companies to Use in 2025:

  • Health, sustainability, and performance are key factors driving consumer choices in the plant milk market.

  • Oat milk's dominance is waning, creating opportunities for other plant-based options.

  • Pea milk is emerging as a strong contender due to its nutritional profile and sustainability.

  • The specialty coffee industry is a significant driver of innovation in the plant milk market.

  • Transparency and clear communication about ingredients and environmental impact are crucial.

  • Clean label is important.

Strategy Recommendations for Companies to Follow in 2025:

  1. Invest in research and development to create plant milks that are both healthy and high-performing.

  2. Focus on ingredients with strong nutritional profiles and low environmental impact, such as pea protein.

  3. Develop barista-friendly formulations that meet the demands of specialty coffee preparation.

  4. Clearly communicate the health and environmental benefits of their products to consumers.

  5. Emphasize transparency and traceability in their supply chains.

  6. Partner with specialty coffee shops and baristas to promote their products and gain credibility.

  7. Offer a variety of plant milk options to cater to different tastes and dietary needs.

  8. Highlight clean-label ingredients and minimal processing.

Final Sentence (Key Concept) Describing Main Trend from Article:

The plant milk landscape is rapidly evolving beyond simple dairy alternatives, driven by a consumer demand for healthier, more sustainable options that deliver on both nutritional value and performance, particularly within the discerning specialty coffee market.

What Brands & Companies Should Do in 2025 to Benefit from the Trend and How to Do It:

In 2025, plant milk brands and companies should prioritize the development and marketing of premium plant milks that excel in nutrition, sustainability, and performance, particularly for the specialty coffee market. They can achieve this by investing in innovative ingredients like pea protein, focusing on clean-label formulations, highlighting transparent and ethical sourcing, and collaborating with baristas to ensure their products meet the highest standards of taste, texture, and foamability.

Final Note:

By implementing these strategies, brands can successfully take advantage of the premiumization of plant milks trend. They can market to consumers who are looking for a healthy, sustainable, and high-performing alternative to dairy and are interested in products that align with their values and meet the demands of specialty coffee. They can be a part of the growing movement towards conscious consumption, where health, sustainability, and quality are paramount.

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