Nestlé to Release Animal-Free Dairy Products in 2023
The dairy industry is witnessing a massive transformation as consumer preferences are gradually changing, owing to the increasing awareness of health and wellness.
Recently, Nestlé (food and beverage giant) announced that it is exploring the potential of animal-free dairy through a partnership with California-based Perfect Day.
Nestlé’s U.S. R&D Accelerator, Joanna Yarbrough, said, “While this category is still very young, we know consumers are looking for products that have a reduced environmental footprint, and we are evaluating this avenue as a future growth opportunity for our business.”
Nestlé recently partnered with Perfect Day Foods to put kinder, greener products on store shelves with their introduction to the animal-free dairy variety and keep sustainability at the center of their business, believing a better future to be possible together.
The increasing awareness of lactose-free dairy products has led to the surging demand for various types of yogurts, flavored milk, and cheeses. Stakeholders across the lactose-free dairy products industry are expected to invest highly and innovate animal-free and plant-based dairy products for lucrative business prospects.
What is the replacement for animal-free dairy?
Dairy production contributes at least 4% of all global greenhouse gas emissions, which includes rearing cattle. Perfect Day uses a precision fermentation process to mimic dairy proteins produced by cows which is suitable for vegans to reduce animal-based dairy products.
With the increasing pressure among food manufacturers to meet the food demand and the adoption of modern healthy food trends among consumers, the demand for plant-based food products has increased rapidly. The plant-based food and beverage alternatives market growth is majorly driven by the rise of flexitarian consumers (people who consume meat and dairy but are focusing on reducing their consumption level), along with the increase in the number of vegan and vegetarian consumers.
An increase in the health-conscious population, investments by food and beverage industry giants, and animal and environmental concerns among consumers are the factors supporting the growth in the demand for plant-based food and beverage alternative products globally.
According to BIS Research, the global plant-based food and beverage alternatives market is projected to grow at a significant CAGR of 13.82% during the forecast period from 2019 to 2024.
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The plant-based food and beverage alternatives market is segmented into soy, wheat, almond, corn, and others. Among these, the soy segment dominated the global plant-based food and beverage alternatives market in 2018 and is anticipated to maintain its dominance throughout the forecast period.
What is Nestlé planning to release?
The developments in the global plant-based food and beverage alternatives market are largely driven by food and drink industry giants and financial investors tapping into the fast-growing plant-based food and beverage alternatives market.
Although nothing has been disclosed by Nestlé yet, plain and chocolate milk are expected to be the novel launches in the U.S. stores developed by Nestlé’s R&D team in Switzerland.
Heike Steiling, head of Nestlé’s development center for dairy products, made a statement about the progress of exploring the new horizons of animal-free dairy products, “Being one of the world’s largest food and beverage companies and considering the planet as a priority, we deliver foods and beverages that are good for people and cause no harm to nature. With respect to rejuvenating animal-friendly alternatives that are nutritious and sustainable, we are planning to explore emerging technologies that can lead to animal-free dairy products without compromising on taste, flavor, and texture.”
Later she concluded, “Our unmatched R&D expertise, innovation capabilities, and scale are brought together to develop and test novel animal-free dairy protein-based products to complement our wide-ranging portfolio of plant-based alternatives.”
Holding expertise in delivering major dairy products all over the world, Nestlé states that it is actively looking to minimize the carbon footprint of dairy without compromising on the nutritional benefits of its core product lines.
Conclusion
The plant-based dairy segment has dominated the global plant-based food and beverage alternatives market to replace animal-based dairy in a sustainable manner and is expected to increase its dominance in upcoming years.
Along with Nestlé, many other companies are planning to proceed toward reducing the carbon footprint of dairy using precision technologies such as fermentation to have a very low carbon footprint. The products so produced are relatively inexpensive.
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