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Non-Dairy Creamer Market is Expected to Behold a CAGR of 5.5% during 2018 - 2028

Author: Vijay Kundekar
by Vijay Kundekar
Posted: Jun 21, 2019

Owing to the increasing demand for non-dairy creamers in the food and beverage processing industry and among foodservice operators, the global non-dairy creamers market is projected to increase at a CAGR of 5.5% in revenue terms during the forecast years 2018-2028.

Non-dairy creamers are products that are used as a lactose-free alternative to dairy creamers, for use in a variety of products such as soup premixes, beverage mixes, ready-to-drink beverages, processed and packaged food products, bakery products, and also in ice creams. Non-dairy creamers are also present in a variety of forms such as powder and liquid. The powder form of non-dairy creamers is the form in which most of the non-dairy creamers are manufactured. This is due to the relatively longer shelf life because of the spray-drying process and also due to the enhanced shelf stability of the powdered form.

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Low Production Costs of Non-Dairy Creamers Posing as a Benefit for Beverage-Mix Producing Companies

The main use of non-dairy creamers is in beverage mixes such as coffee-based mixes and milk tea-based beverages that are manufactured by many companies, especially in China, Europe, and a few countries in Southeast Asia. The availability of non-dairy creamers in a large scale has promoted the trend of beverage-mix manufacturers using them in mixes. This has reduced their cost of production, as they do not require any additional processing for non-dairy creamers. Also, due to many manufacturers present in the business of non-dairy creamers, there is a massive supply of non-dairy creamers at very competitive prices. The extensive use of non-dairy creamers in beverage mix manufacturing is thereby driving the market to a great extent.

Non-Dairy Creamers More Attractive Due to the Fluctuating Prices of Milk

During the past two years, the prices of milk have been fluctuating a lot, resulting in the value of dairy products getting reduced. Non-dairy creamer manufacturers have highly benefitted from this, since the production cost of non-dairy creamers is somewhat stable, due to the prices of the raw material used for their production remaining mostly constant. The consumer base, especially the lactose-intolerant and vegan population, for non-dairy creamers, is also increasing at a high rate. Lactose-intolerant consumers and those following veganism can use these non-dairy creamers as far as their beverages are concerned, as an alternative to traditional creamers. Non-dairy creamers are available in a wide variety of products, which could cater to the various demands from consumers. This popularity has led many manufacturers to produce dairy alternatives such as plant-based non-dairy creamers with the same appearance and taste as that of dairy creamers. Non-dairy creamers are made either with vegetable oil or plant-based milk such as soy, almond, coconut, etc., as the base.

Low Penetration in Developing Countries Due to Lack of Knowledge Has Led to a Rather Limited Growth of the Non-Dairy Creamers Market

Developing countries have been experiencing a rise in disposable income in recent years, but the penetration of the knowledge about non-dairy creamers in these regions is comparatively less than that in developed countries. Also, the trend of dairy alternatives and veganism has not yet penetrated these regions, due to which, the consumer base for non-dairy creamers is limited. But in the coming years, developing regions such as China, India, and Mexico are expected to have substantial growth in the non-dairy creamers market. The use of non-dairy creamers for household is also less, due to the lack of knowledge about the benefits and nutritional composition of plant-based non-dairy creamers.

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Coffee Culture – Expansion into Traditional Tea Markets

The coffee culture is being popularized and embraced in the APAC and Southeast Asian regions that are traditionally tea-drinking markets. This has surged the demand for instant coffee mixes that provide a gourmet coffee taste and appearance, even in a sachet. As such, manufacturers are trying their best to provide instant coffee mixes with a luxury out-of-the-home experience with the help of non-dairy creamers. Instant-mix has thereby become a popular product in the global market, and market players are trying to enhance this to increase their consumer base. Various processed food manufacturers also use non-dairy creamers as an ingredient in their final products, which are very popular in the Asian and MEA regions that have seen a rise in disposable income in recent years. The non-dairy creamers market in these regions is expected to experience a very high growth rate in the coming years. The non-dairy creamers market is expected to gain traction in the Asian and European markets too, with the countries in these regions already being major producers of non-dairy creamers.

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Author: Vijay Kundekar

Vijay Kundekar

Member since: Jul 25, 2018
Published articles: 508

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