Innovation could elevate the Alternative Dairy space in 2020

The alternative dairy trend may have started out primarily to address allergen issues, but now it has “taken on a life of its own,” Kantha Shelke, a member expert at IFT, said in an interview with Food Dive.   Today, the dairy aisle is crowded with alternative products, from oat and almond to hemp and soy, and that growth is expected to accelerate in 2020 with better innovation in texture, nutrition and ingredients.

This year, in particular, Shelke says companies will develop alternative milk and yogurt products that have better nutritional properties, like protein.  “There’s going to be new ways of making these products and also new ways of making these products deliver on the promises of the original that they are mimicking,” Shelke said. “I think that’s the opportunity right now, and I believe everyone is getting on board for that.”

In an Innova Market Insights report on top food trends for 2020, the plant-based dairy category is expected to diversify as consumer interest grows. In a survey conducted by the group, about 32% of consumers said they bought dairy alternatives simply “because they’re healthier” and 27% said they bring variety to their diet.  Shelke says that consumers are not only looking for healthier-seeming products, they also want satisfying taste and texture, which could come by innovation in ingredients and technology.

Already, food tech startup ChickP introduced a line of chickpea isolates designed for plant-based dairy alternatives, and ​Swebol Biotech, a food technology firm, developed a patented quinoa milk.  “At the moment we’ve got oats and coconuts and peas, but I believe that you’re going to see other seeds and nuts that are going to come into the fray,” she said.

In terms of tech, Perfect Day uses fermentation to make milk without a cow and just closed a $140 million funding round in December, showcasing how lab-created dairy is of growing interest in the industry.   “It’s really bringing that pride back to dairy,” Ryan Pandya, co-founder of Perfect Day, says.

These startups join big name companies like Chobani and Danone in unveiling more products in the alternative space as traditional dairy struggles and more of those launches will likely appear in 2020.

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