If 2021 is the year of the health-conscious consumer, food and beverage manufacturers and retailers are wondering how to address evolving consumer needs in 2022. Industry experts predict the health-conscious consumer is here to stay and with a broader focus.

Almost three-quarters of adults agree that the pandemic experience has dramatically changed their perspective on life (Mintel). We saw the effects of these shifts in 2020 and 2021 as consumers reevaluated their health and approach to wellness. More people began cooking at home and making healthier eating and exercise choices. They also searched for products to support their immune systems and help relieve stress.

Physical health will continue to be a top priority in 2022, but the focus is expanding to include mental wellness and environmental health. Consumers will be shopping for food and beverage products that support their well-being and help them meet new sustainability goals.

More consumers are stepping up to purchase plant-based dairy products. The Good Food Institute reports through SPINS data that U.S. sales of plant-based milk, creamer, frozen desserts, cheese, butter, dips, and condiments increased 23.4%, topping $4.5 billion in 2020. The plant-based dairy market in Canada grew +16% according to data from the last available year, with Nielsen recording more than $322 million in sales.

Despite the rapid growth trajectory, low category shares of plant-based dairy products present producers with significant upside potential.

• Plant-based frozen desserts, for example, represent about 5% of total U.S. ice cream and frozen dessert sales.
• Non-dairy yogurts, butter, and cheeses hold a similar share.
• Plant-based creamers are outpacing other categories, capturing about 7% of total creamer sales.

What’s holding plant-based dairy back from gaining more space in refrigerators and building market share?

Strolling through the local supermarket, you may notice something different about the dairy section, specifically in beverages. More consumers are taking notes from a character named Jack and trading in the cow for beans (or nuts). Almonds, soybeans, cashews, and even oats are finding their way into shopping carts and refrigerators as milk alternatives. According to Mintel, 52% of adults in the U.S. buy more plant-based milk because they believe it is a healthier alternative with more appealing nutritional qualities. These qualities can range from being allergen-free to delivering vitamins and minerals for a plant-based lifestyle. While dairy isn't at risk of moving on to greener pastures anytime soon, the demand for plant-based alternatives in beverages is expanding the dairy aisle.