The plant milk market - France (2024)

1.2 A fast-growing global market

The plant milk market is particularly dynamic, with sales expected to grow by **.*% on average each year between **** and ****. This would represent a market worth $**.* billion by ****, compared with $**.* billion in ****, a total increase of nearly **.**% in * years. [***]

Global vegetable milk market size World, **** - ****, in billion USD Source: ****

growth is expected to be relatively equivalent in all regions of the world, allowing Asia-Pacific to maintain its dominance over North America and Europe. In ****, the Asia-Pacific region alone accounted for almost half of all plant-based milk sales, compared with just **% for Europe. This particular importance of Asia is due in particular to the natural presence of plants used to make plant-based milk, such as soy and rice.

Plant milk market breakdown by world region World, ****, % (***)

moreover, almond milk is set to enjoy the strongest growth over the ****-**** period. Soy and rice milks are expected to grow less than all other plant milks over this period.

Average annual growth rates for the different types of plant milks World, ****-****, % (***)

1.3 Strong growth in the French market

The national plant milk market is highly dynamic. In fact, the market reached ***.* million euros in ****, an increase of *.*% on ****. What's more, between **** and ****, the market almost quadrupled (***). Nevertheless, in ****, the market declined by *.*% year-on-year for the first time, before rebounding with a *.*% increase in ****.

market size trends for plant milk France, ****-****, in millions of euros CAGR: +**.* Source: ****

This dynamism is partly due to a structural change in the consumption habits of the French, who are increasingly sensitive to organic and dietary products, and to their widespread availability in supermarkets and hypermarkets.

Breakdown of plant milk sales, by type France, ****, % Source: ****

1.4 France stands out as an exporting country

A large proportion of French production is destined for international export. In ****, France exported ***.* million euros worth of plant milk, and imported **.* million euros. Thus, in ****, the coverage rate (***), before the health crisis. Indeed, while the level of imports fell slightly in **** and then rose in ****, the value of exports fell sharply in **** and **** compared with ****, only to regain momentum in ****, as the following graph highlights. [***]

Amounts of vegetable milk trade flows France, ****-****, in millions of euros Source: ****

The countries receiving French plant milk exports are European and form a loosely concentrated customer base, with Germany accounting for a quarter of exports, ahead of the UK (***).

Main countries receiving plant milk exports France, **** Source: ****

conversely, the origins of imports are much more concentrated. Italy is by far France's leading supplier (***)

Main supplier countries France, ****, as % of total Source: ****

2.1 Increased consumption of alternative milks

Plant milk is one of the so-called "alternative" milks, a category that also includes goat's and sheep's milk, as well as organic milk. These alternative milks represent increasingly serious competition for cow's milk, whose penetration rate among the French population is declining significantly year on year (***)[***]

By ****, almost **% of the French population will be consuming one of these alternative milks. However, just after this year, the market began to show signs of decline. Indeed, in ****, a decline is observed, with the rate dropping to **.*% and then continuing to fall until it reaches **% in ****.

trend in the penetration rate of alternative milks France, ****-****, in % Source: ****

sales of alternative milks by value France, **** - **** Source: ****

2.2 Drinking plant milk

Among plant milk consumers, breakfast is the preferred time of consumption (***). [***]

Preferred consumption times for animal and plant-based milks France, ****,% Source: ****

Consumers also consider plant milks to have qualities equivalent to those of milk. This substitutability is particularly interesting for people with lactose intolerance (***).

However, there is a lack of information among consumers, since half of them believe that plant milks provide the same nutrients as milk, which is not the case.

Consumer opinions on soy and almond milk France, ****,% Source: ****

Plant milk therefore represents a beverage that replaces traditional milk, sometimes to a fault. However, its consumption remains much lower than that of animal milk. In fact, while ** million liters of plant-based milk were consumed in ****, *.*** billion liters of animal-based milk were consumed in the same year, i.e. **.* times more. [***]

Among the various products that can be made from milk of animal or plant origin (***), plant-based milk products vegetable milk products systematically have a much lower penetration rate than animal milk products. For example, the penetration rate for vegetable juice was just **.*% in ****, compared with **.*% for animal milk. [***]

Penetration rate of milk-based products of animal or plant origin France, ****, % [France Agrimer Source: ****

In ****, the penetration rate of plant-based milk ...

2.3 The organic trend is gaining ground

Since the early ****s, French consumer habits have undergone profound changes. Awareness of environmental issues has encouraged a significant proportion of the population to adopt a more eco-responsible consumption pattern.

In ****, around **% of French people said they had recently given preference to local products and short distribution channels, while **% said they were buying more fresh produce. What's more, **% of French people say they have bought more organic produce over the past * years. This succession of behaviors, added one to the other, directs consumers towards better quality, more environmentally-friendly and more local products. [***]

The changing consumer habits of the French France, ****, % Source: ****

This change in consumption habits has been reflected in the adoption of diets within the population. For example, **% of the population claim to follow a flexitarian diet (***). The latter are a prime target for plant-based milk brands.

In all, **% of the French population has adopted a special diet, a variable that cannot be ignored by food manufacturers.

Percentage of French people following a diet France, ****, % (***) source: Nielsen

In particular, Nielsen notes that, among the French, around **% can be classified as "bio-local", people who favor local, seasonal produce, to support their region, preserve the environment and for their own health.

More ...

3.1 A market split between private labels and two brands

The plant milk market is particularly concentrated, with * brands accounting for almost **% of sales, Bjorg alone for **.*%. [***]

However, Bjorg and Alpro face growing competition from private labels (***), thanks in particular to their less expensive positioning, which enables them to offer "affordable dietetics".

Breakdown of plant milk sales, by brand France, **** Source: ****

The sector's high concentration is not the result of numerous acquisitions between different companies. The dominance of Bjorg, and to a lesser extent Alpro, can be explained by their pioneering position in this market (***).

Danone's acquisition of WhiteWave (***) for **.* billion euros, giving it control of Alpro in Europe. The acquisition of Wassanen by the investment fund PAI Partners in **** for *** million euros, giving it control over the Bjorg, Bonneterre and Alter Eco brands.

Source: ****

Another strategy is often adopted by large agri-food groups marketing animal-based milks. They generally create a new brand dedicated to plant-based derivatives of their animal-based products. This is the case, for example, of Sodiaal through its Candia Végétal brand, or Nestlé through its new Wunda brand, to be launched in ****.

3.2 A long production process

The production process for the various plant milks varies little, whatever the raw material used. After a soaking phase to soften the ingredients used, a grinding phase crushes the various elements into small grains. [***]

The solids are then separated from the liquid. The liquid then passes through a formulation phase, during which ingredients (***) can be added, according to the manufacturer's recipe.

Next comes the homogenization phase, which breaks down the fat bubbles contained in the milk. This is followed by heat treatment, which extends the product's shelf life and emulsion properties. Finally, the milk is packaged and marketed.

Source: ****

3.3 Distribution

Agence Bio provides the weight of the different distribution channels for organic plant-based drinks. Although not all plant milks on the market are organic, they still account for **% of sales by value[***]. TheAgence Bio data therefore give a good representation of the importance of the different distribution channels for plant milk.

The main distribution channel for plant milk is supermarkets (***), which account for **%. Direct sales account for **% of the market. Finally, craftsmen and retailers account for just *%.

Breakdown of plant-based beverage sales, by distribution channel France, ****, in Source: ****

Specialist organic stores include :

Biocoop Bio c' Bon Naturalia

Among the major organic and health food e-commerce sites are Greenweez, which offers *** plant-based beverage references, and the drive-through sites of various supermarket chains, such as Carrefour and Auchan. [***]

4.1 Typology of plant milk supply

The production of plant milk makes it possible to produce several types of product, generally sold under different brand ranges. These include vegetable juices (***), cream and ultra-fresh products.

For example, Bjorg offers a Calcium range, made up of vegetable juices (***). [***]

Alpro offers a wider range of alternative products than Bjorg, with ** different plant-based drinks, * plant-based alternatives to cream and ** plant-based alternatives to yoghurts. [***]

Plant milks can be classified according to the raw material used, since each ingredient has its own nutritional properties which modify the taste and contribution of plant milk. The most common are oilseed milks (***). [***]

Almond milk, for example, is mild and sweet, and suitable for gluten-free and paleo diets. Soy milk is versatile (***), but is generally consumed with a supplement because of its taste.

Source: ****

Generally speaking, manufacturers strive to market products that appeal to a segment of the population that is sensitive to dietary and/or environmental issues. This generally translates into the development of organic (***), vegetarian, GMO-free or lactose-free products. [***]

Source: ****

4.2 Higher prices for plant-based milks

Prices for plant-based milk products are systematically higher than those for animal-based milk. In ****, the widest gap was for milk, with a price per kilo for plant milk *.** times higher on average than for animal milk. [***]

Average price of animal and plant milk products France, ****, €/kg Source: ****

This partly explains why consumers consume plant milk less often (***). [***]

There is also a wide range between the prices offered by private labels and leading brands such as Bjorg and Alpro.

An analysis of products marketed by Carrefour, for example, shows that the average price of products sold by the distributor is €*.**/liter, less than the average for Bjorg (***). [***] The latter two brands have the advantage of being able to capitalize on their brand image to offer higher average prices.

Price range for plant milk on a retailer's website, by brand France, ****, €/liter Source: ****

We can also see that almond milk generally has the highest price.

4.3 Diversifying plant milks

One of the major challenges for plant-based milk brands is to succeed in diversifying their product offering in order to develop their consumer base. Today, the offer remains relatively limited and concentrated on a few products.

With this in mind, brands are developing their ranges and new product types. Among the new product trends coming onto the market, we can cite * main ones:

Sugar-free: Bjorg, for example, launched a sugar-free cashew-based drink in **** New flavors: brands are developing drinks with new flavors, capable of combining nutritional quality and pleasure[***] Cooking: brands are also increasingly developing ranges designed to be used for cooking. This is the case, for example, with Bjorg's"yes to vegetables" milk. Ready-to-drink beverages: Andros, for example, has launched a drink that is half fruit juice and half plant milk. For its part, Alpro offers a whole range of"Caffè" with plant milk. Dilutable concentrates: Moris' Meelk brand offers dilutable hazelnut and almond concentrates. [***]

In addition, the plant-based milk offer, which at the outset was almost exclusively organic, is less and less so. Indeed, between **** and **** alone, the share of non-organic milk has risen from **% to **%. [***] This is due to market share gains by Alpro, as well as plant ...

4.4 The dangers of overconsumption

On June **, ****, the World Health Organization (***) published a report warning of the potential dangers of excessive consumption of plant-based milks and products, such as soy, coconut and oat milk, which are becoming increasingly popular in Europe. According to the WHO, this growing popularity has led to a reduction in dairy consumption among teenagers and adults, increasing the risk of deficiency in the essential mineral iodine, especially for pregnant women.

Historically, the main sources of iodine have been fortified table salt and fish. Dairy products were also an important contributor, accounting for **%. However, by replacing these traditional sources with plant-based alternatives, consumers risk not meeting their iodine requirements, which can lead to health problems including thyroid enlargement and, in severe cases, hypothyroidism with potential repercussions on cardiovascular health.

The WHO particularly warns women, who are more likely to suffer from these imbalances, and points out that it could also compromise the brain development of fetuses and young children. It is therefore recommended to continue including iodine-rich foods in the daily diet. [***]

5 Regulations: banning the use of the "milk" label

Since ****, plant milk manufacturers have been forced to change the names they previously used to designate their products. Indeed, a ruling by the Court of Justice of the European Union restricted the use of the name "milk" for commercial and advertising purposes to milk of animal origin only. [***]

This prohibition imposed on manufacturers is broader in scope, since it also covers other designations such as "cream", "whipped cream", "cheese" and "butter".cheese", "butter" and "yoghurt", which are now reserved exclusively for products derived from animal milk.

However, the Court has made a few exceptions for certain products, sometimes under very specific conditions. [***] These exceptions include

Almond milk Coconut milk Cream of corn Cream of rice Cream of oatmeal

The name cream can also be used for soups and spirits that do not contain milk or other dairy products, which may be imitated.

6. Segmentation

*Group sales

• Danone Groupe France
• Bjorg (Ecotone)
• Nutrition et Santé -Soy
• Alpro (Promavel)
• Biolait
• Oatly
• Carrefour Bio