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New plant sources propel diversity: Oat milk shines in non-dairy NPD, indulgent flavors tipped for success

The market for plant-based dairy and desserts is changing in scale – dramatically. Boosted by a sustainable and natural positioning that reflects consumer demands, the market now provides tasty treats for consumers who are opting more frequently for planet-friendly choices. At the same time, this category is mindful of promoting its health benefits. Now that plant milk is more mainstream; there is a huge push towards bringing even more dairy-alternative products to market.

According to Anne Sinha, Global Strategic Segment Lead for Protein, at CP Kelco, plant-based drinking yogurts, cheeses and creamers are on the rise. “Plant-based dairy products with probiotics are also trending. For instance, some manufacturers are using a slow-cultured process with cashews to create a drinking yogurt with live probiotics. However, just as in the meat substitutes market with its trend of plant-based fast food ‘burgers,’ there’s an interesting mix of good-for-you vs. indulgent products,” she explains.

Visible trends in the dairy space are also mirrored in the plant-based arena, notes Katharina Schäfer, Product Manager at Hydrosol. “Alternatives to yogurt focus more on interesting flavor combinations like strawberry and rose or aloe vera and lychee,” she comments. “There are more and more products with an extra benefit. This can be enrichment through ingredients like protein, vitamins, or specific fatty acids that fit the healthy eating trend.”

Also speaking with, Natalie Drake, Category Manager at Carbery, says that in Europe, the general trend for plant-based desserts is split between 2 key themes; “as good as dairy” and “naturally healthy.”

“‘As good as dairy’ is the idea that consumers still demand the great tasting products seen in the dairy space when shopping for plant-based foods. Many big brands such and Ben & Jerry’s, Gu, Magnum and Cornetto have launched plant-based versions of their most popular dairy products. On the other hand, many manufacturers are playing on the natural health credentials of plant alternatives with an increasing number of products in this space with claims such as ‘raw’, ‘organic’ or with added macronutrients such as protein,” she explains.Innova Market Insights reports an almost 50 percent average annual growth in vegan desserts and ice creams launched over the past five years. “This diversity is growing as new plant protein sources emerge,” Sinha affirms. “We now see products blending different proteins, like almond, pea and coconut, to reach the right nutritional level and essential amino acid profile, as well as the emergence of hybrid dairy and plant protein products to appeal to those who grew up consuming dairy but are interested in flexitarian options.”

Sinha says that soya is still number one globally, although almond has surpassed soy in beverages in the US. “Oat milk appears to be the shining star right now. This is due to a variety of reasons, including the health halo associated with the consumption of oats and a cleaner label image of oats vs. soy, especially if consumers concerned about non-GMO and organic status,” she continues. “For manufacturers, oats can provide a better flavor profile than other plant-based proteins.”

Drake notes that “while it is clear that soya is the dominant ingredient for plant-based milks, more recently, product launches containing soya have been declining.”

“Oat milk is also seeing a lot of launch activity and innovation mainly due to its low environmental impact and more neutral taste profile. Pea milk could also be one to watch,” she continues. “With an increasing demand for non-dairy products and movement away from soya, pea is a great alternative that has already made waves in the plant-based protein and meat alternative space.”

For Schäfer, she mentions that in most regions, classic soya-based beverages have been leading product launches, but now “almond is gaining momentum in this field.”

However, attentive consumers might prefer another alternative to almond and soya milk. “Research shows that oat drinks have a low ecological impact,” she comments. “This, coupled with a relatively neutral taste of this product, explains the growing interest over the last years.”

Jumping aboard the vegan trend
CP Kelco has been receiving a lot more requests recently for vegan statements for its nature-based ingredients, which in turn, translates to a requirement from the manufacturer and a pull from the final consumer, Sinha notes.

To further illustrate this heightened consumer demand, Disney just announced the addition of more than 400 vegan-friendly menu items at its parks. Meanwhile, according to Innova Market Insights, more than half of US consumers have changed their eating habits in the past year. “It’s only natural that the momentum in plant-based products is leading to a desire for ingredients that comply with vegetarian and vegan diet needs. That includes an increased demand for more protein – especially from non-animal, sustainable and vegan-friendly sources,” she comments.

“More and more people are paying attention to what they eat and looking for animal-derived ingredients on the packaging to avoid them,” explains Schäfer. “It’s not only the vegan or vegetarian consumers but also the more mainstream consumers, so-called flexitarians, who are interested in this due to different reasons like animal welfare or ecology,” she muses.

“Just as there is a breadth of plant-based proteins available now, manufacturers are specializing in them. Sometimes, after they’ve conquered one protein and find success, they’re eager to grow their product portfolio. As some proteins become ‘older,’ such as soy or almond milk, for example, manufacturers strive for newness. Also, because the trend keeps growing, more manufacturers jump in to take advantage. It’s also a great way for manufacturers to show brand differentiation,” explains Sinha.

Variety will keep the plant-based market trend blossoming in 2020, she forecasts. “New protein types include legumes that are more sustainable and provide an interesting amino acid composition.”

“As for trending products, we can expect to see new plant-based mayonnaise and spreads with soluble dietary fiber added. Also, manufacturers are applying traditional aging and slow-cultured processes to create depth of flavor and better-for-you, plant-based hard cheeses,” Sinha says.

Plant-based desserts trending
“All the indulgence, without the dairy is the general theme that we are seeing,” Drake states. While many consumers are choosing plant-based options, manufacturers don’t want them to feel like they’re missing out.

“Indulgent profiles such as chocolate, caramel and fudge tend to be the go-to flavors for plant-based frozen desserts. It could also be the case that these indulgent profiles go some way in helping to round off the flavor of the complex plant-based ingredients,” says Drake.

Meanwhile, plant-based desserts are emerging and “will likely differentiate further with consumers who want their favorite indulgent dairy dessert in a plant-based version,” according to Sinha. “However, we also see that concerns about reducing sugar are driving demand in this category for healthier, low-sugar options. Whenever sugar is reduced, taste and texture take center stage,” she notes. More exotic and ethnic flavors that pair well with coconut and almond milk bases are likely to pop up more frequently.The dessert category has always been one of great experimentation driven by regional taste preferences, Sinha affirms. “We see a lot more unique flavors such as florals, exotic fruits and bold and warm spices, such as cracked black pepper, pink peppercorn and even chili.”

“Globally, we see the success of protein claims in dairy and alternative dairy ice cream is crossing into protein-rich novelty frozen desserts such as ice cream sandwiches and ice pops,” she states.

For Schäfer, one main trend in the plant-based and dessert space is indulgence, which can be expressed by specific flavors or textures. “Products such as vegan ice cream are coming onto the market with dessert flavors and an extra creamy mouthfeel,” she explains. “Plant-based alternatives like almond-based pudding or vegan ice cream are also of interest in the foodservice sector.”

“The same applies to bold flavors that offer something unexpected and new like sweet and savory combinations,” Schäfer adds.

In the frozen dessert space, everything with cheesecake is trending: from classic New York Style or more individual and indulgent flavors like gingerbread and cinnamon, dark chocolate as well as salted caramel, Schäfer notes.

“Besides this, we see indulgence being the top trend for frozen desserts. There are many portioned desserts coming onto the market like the classic tiramisu, crumble with apple and salted caramel flavor and of course, mini cheesecakes,” she concludes.

What’s next?
Plant-based ingredients that deliver high amounts of protein, vitamins, minerals, or omega 3 fatty acids are of interest for future development in the dairy alternatives and desserts space.

Timeless and traditional flavors such as vanilla and red berries will be at the heart of these launches. However, hints of new and exotic flavors will encourage consumers to try new plant-based foods, with new textures and functional ingredients.

Coconut, in particular, will continue to thrive in this space, due to both its texture and its full-bodied taste. The combinations of tropical fruits, with mango, pineapple and passion fruit, offer flavorful concepts that adventurous palates appreciate.




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