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#1001-50 The European Market for NON-DAIRY DRINKS (1st edition)
 

Soya Drinks Dominate European Non-Dairy Drinks Sector
Consumer demand for non-dairy drinks is flourishing in Europe. Revenues are projected to expand by 22.1 percent to EUR 228 million in 2002 with the highest growth being observed in the British and German markets.

The British non-dairy drinks market has become the largest in Europe this year. Growth rates in excess of 30 percent per annum since the late 1990s have made British consumers the largest spenders on non-dairy drinks in Europe. The French market was initially the largest however market growth rates have slowed as consumer demand has stabilised.

The German non-dairy drinks market is projected to show the highest growth in the coming years. Revenues are expected to increase by 35 percent in 2002 and high growth is to continue in the near term as consumer interest in non-dairy products rises. The Italian market reported the highest growth in recent years with volumes expanding over ten-fold since 2000. A major driver in the Italian and German markets is increasing retail penetration with non-dairy drinks becoming widely available in mainstream retailers.

Organic non-dairy drinks have roughly two-thirds market share of total non-dairy drink volumes. This sector is to show slightly higher growth than the non-organic non-dairy drinks sector due to strong consumer interest in organic foods. The organic rice drinks segment is to show the most significant increase in market share in the coming years.

There have been many changes in the non-dairy drinks industry since the mid 1990s. Initially consumers suffering from allergies mainly bought non-dairy drinks as a dairy milk substitute. There was also high interest from vegetarians, vegans, and consumers who wanted to reduce or avoid livestock products.

Consumer appeal has widened considerably in recent years due to lifestyle changes and as the health & nutrition benefits of non-dairy products have come to light. Soya-based products in particular have benefited from scientific research linking soya consumption to low levels of cholesterol and reduced incidence of ailments like breast cancer and osteoporosis.

Soya drinks dominate the European non-dairy drinks market. Soya milk is the most commonly used dairy milk substitute and improvements in taste & quality have broadened consumer demand. Companies are focusing on product development to expand the category – new products launched in the last year include chilled soya milk and soya smoothies.

The supermarkets have responded to greater consumer interest by providing more shelf-space to non-dairy drinks. Traditionally most sales have been from specialist retailers like health food shops however the market share of the supermarkets exceeded that of the specialists for the first time in 2002. Soya drinks are most evident in the multiples with rice drinks the second most common. Oat drinks and nut drinks are rarely found in the supermarkets.

Increasing competition has become a feature of the non-dairy products industry. The high market growth rates have attracted a number of new entrants however the industry remains highly concentrated with one leading company dominating each product segment. The Belgian firm Alpro is the market leader however its market share is being eroded by new entrants, especially in the Italian and German markets.

This report gives market sizes, revenue forecasts, and market shares of the leading producers for the leading product segments. Market & competitive information includes pricing analysis, distribution trends, marketing channels, and retailer profiles.

Product Segments: soya drinks, rice drinks, oat drinks, and nut drinks

More Information
Updated Report: #1002-50 The European Market for Soya & ND Drinks (2nd Edition)

Research News: Hain Acquires Imagine Foods - Ramifications on European Market
                      UK: Chilled Soya Drinks Range Widens

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