When one thinks of cow milk alternatives, what comes to mind might be soy milk, almond milk, or the recently popular oat milk. But, this post is about a different type of alternative: goat milk. Today’s market size shows total global goat milk product revenues for 2020 and projected for 2028. 

In terms of nutrition, cow milk and goat milk are nearly identical. Goat milk has more calories, protein, and fat but has fewer milligrams of cholesterol. It also has more calcium, potassium, and vitamin A. However, cow milk has more vitamin B12, selenium, and folic acid. Goat milk may be easier to digest for some people. The fat molecules are smaller, making them easier for the body to process. Also, goat milk has less lactose than cow milk. The growing popularity of this product is driven by its lower cholesterol and lactose.

In 2019, the last year for which data are available, global production of whole fresh goat milk totaled 19.9 million tons, down 2.2% from 2018, but up slightly from 2016. By region, Asia produced the most by far, 11.7 million tons, followed by Africa (4.4 million) and Europe (3.1 million). Oceania produced the least, 39 tons, followed by North America at 25,706 tons. However, North America garnered a 26.2% share of global revenues for goat milk products in 2020, the U.S. accounting for most of that. The Asia-Pacific region had a 29.8% share. There are several well-established and small goat milk producers worldwide, but the market is dominated by various international companies including Emmi Group, Kavli, Ausnutria Dairy Corp. Ltd., Granarolo Group, Dairy Goat Co-operation, Gay Lea Foods Co-operative Ltd., Hay Dairies Pte Ltd., Cherry Glen Goat Cheese Co., Goat Partners International Inc., and Summerhill Goat Dairy.

By product, milk had a 41.3% revenue share in 2020 followed by cheese and milk powder. The cheese segment is expected to grow at the highest compound annual growth rate (CAGR) through 2028. Most goat milk products are bought at supermarkets and hypermarkets. Consumers tend to feel more comfortable choosing fresh groceries, especially fresh dairy products, in person. However, online sales ranked second ahead of convenience stores. This segment benefited from the overall surge in online grocery sales during the COVID-19 pandemic and is projected to have the highest CAGR through 2028. 

Today’s market size shows the global revenues for vegan cheese in 2019 and projected for 2027. The global vegan cheese market is a very small fraction of the $69.7 billion dairy cheese market, however, due to the increasing popularity of vegan cheese revenues are expected to more than double by 2027, growing at a compound annual growth rate (CAGR) of 12.8% from 2020 to 2027. Demand is increasing for all plant-based foods including vegan cheese. Veganism is more common among consumers, either as a health choice or in response to concern for animal welfare and the environment. But vegan cheese is not just in demand among vegans. Flexitarians seek out plant-based alternatives in order to reduce the amount of meat and dairy in their diets. And, according to the U.S. National Institutes of Health, 65% of the global population has trouble digesting lactose, the sugar found in dairy products. Substituting vegan cheese for dairy cheese in many recipes allows this population the ability to enjoy foods they might not be able to eat otherwise.

Vegan cheese made with cashews held the largest share of the market at 35%. Products made with soy are expected to gain market share through at least 2027. Soy is a low-cost dairy alternative and is low in cholesterol with other health benefits. By type, mozzarella held the highest share at 30%, followed by Cheddar, cream cheese, and parmesan. Vegan mozzarella is in high demand in western countries where Italian food, including pizza, are popular. Ricotta-style vegan cheese is expected to see the fastest growth as more popular recipes incorporate this ingredient in appetizers, pizza toppings, and desserts.

With the increasing consumer demand for plant-based cheese, these products are no longer relegated to health food stores and specialty grocers. Increasingly supermarkets and convenience stores are stocking these products. More than 50% of vegan cheese is consumed in the household. Growth in this segment is due to higher availability and a willingness by consumers to pay for premium products. The foodservice segment of the market is expected to see the fastest growth as more restaurants, fast-food chains, and casual-dining establishments add plant-based offerings to their menus. The growing popularity of vegan meal kit services will also contribute to the growth in vegan cheese sales. Plant-based meal kits by Allplants Ltd. have been so popular in the United Kingdom, the company plans to expand to other parts of Europe and North America. Europe accounted for a 40% share of global vegan cheese revenues, the highest in the world, with the United Kingdom and Germany being the major markets in the region. The Asia-Pacific region is expected to experience the fastest CAGR, 14.3%, from 2020 to 2027.

To capitalize on the growing popularity of plant-based foods, some established dairy firms are including plant-based dairy items in their portfolios, either by acquiring companies with plant-based brands or developing products in house. In 2018, Miyoko’s joined Nestlé-backed accelerator Terra and has been working with the company to craft plant-based cheese and butter by combining proprietary technology and age-old creamery methods. In September 2019 Kraft Heinz provided seed funding for San Francisco-based animal-free cheese company New Culture. Before that, in September 2017, J Sainsbury PLC created vegan cheese products under its private label brand to sell in its Sainsbury’s supermarkets in the United Kingdom. As Dominic Borrelli, President of Plant-Based Food and Beverages and Premium Dairy at Danone North America states: “Overall, consumers are recognizing dairy-free doesn’t only need to be for those with allergens or those practicing a dairy-free lifestyle but can simply be enjoyed because it’s delicious!”