More than half of consumers who have stopped buying plant-based drinks would be keen return to the category – and almost a third feel positive about it, according to consumer research carried out by Finish plant-based foods manufacturer Oddlygood Group.
As for yogurt alternatives and plant-based desserts, cost and taste perceptions are key barriers, according to the study that polled 2,000 British consumers across key demographics and three user groups: non-users, low users and lapsed.
In drink products, nutrition, taste and price are the top three purchase barriers according to the study, where almost a quarter of those polled (24%) perceived dairy as healthier/a better source of calcium and other nutrients, and 17% thought plant-based alternatives were too expensive.
But providing insight into how plant-based drinks are made and what makes them healthy could change these perceptions, the study suggests. Boosting brand familiarity and stirring excitement is another way to achieve this, as nearly all (98%) low users state they would try different plant-based drinks.
“Health is definitely one of the drivers that could help [low users] come back,” said Rude Health CEO, Tim Smith. “I think there is a big skepticism in the category about health attributes, about misleading communication, and people are not sure what it is that the products contain.
“So being clear on what the health benefits are, understanding what kind of health people are looking for when consuming plant-based, could persuade them to come back. It’s about integrity and transparency.”
Foodservice, particularly restaurants and coffee shops, is proving to be a growth avenue for brands, particularly for categories like cheese alternatives and beverages.
From plant-based to cow-free
Plant-based may be the biggest and most familiar alt dairy category, but animal-free dairy – particularly ingredients and products derived through precision fermentation – has also been gathering pace in recent years.
Innovators in the sector have consistently faced regulatory and market headwinds, however, whether due to lengthy application and approval processes or price and perception barriers.
In the US, Circana recently told us that many cow-free SKUs had vanished from shelves, and that consumers are unclear about what the category is all about.
However, dairy majors including Danone, Bel and Leprino Foods have been investing in this space, which offers ‘the best of both worlds’ for most brands and consumers: a dairy product that’s molecularly identical to traditional dairy (think the same taste and functionality) but produced with fewer resources than agriculture requires.
And despite a tough regulatory environment, green-shoots of innovation are cropping up. This month, Israeli retailer Strauss Group launched that market’s first cow-free product range, developed with ImaginDairy’s precision fermentation-derived BLG protein.
And hybrid dairy – a category that combines traditional dairy and non-animal ingredients – is also experiencing a revival. In the UK, Kerry Dairy Ireland released the UK’s hybrid range, comprising, milk, butter and cheese alternatives that blend oat and dairy.
Over in Europe, Dutch retailer Albert Heijn launched a range of hybrid milk products formulated with the help of Danish company PlanetDairy.
Overall, despite consumer, regulatory and economic headwinds, innovation is far from stalling.
So what’s next?
Hear from manufacturers, policy advisors and behavior change experts about how the dairy alternatives category is shaping up today: and what are the regulatory, consumer and market factors that will define its future.
Join our FREE webinar on October 07, 2025 at 4pm CEST / 9am CT to hear from our panellists:
- Bertel Haugen, Rude Health
- Jakob Skovgaard, PlanetDairy
- Matthijs Germs, independent policy advisor and founder of Verdant
Along with special guest appearances by:
- ImaginDairy’s Roni Zidon, who will tell all on how the company helped to launch Israel’s first cow-free retail product range; and
- Heather McKee, behavior change specialist who will delve into why consumers can be change averse when it comes to dietary habits.
Hosted by DairyReporter editor Teodora Lyubomirova, this webinar will offer both insights from manufacturers as well as guidance on policy and market trends.
Registration is free and guarantees you access to our pre-lobby space where you can submit your burning questions to our panellists.
Registering also means you get to see and share the broadcast on demand at a time convenient to you.
Find out more about the event and how to sign up via this link: https://tinyurl.com/OCT0725
We look forward to seeing you there.