The food and beverage industry is witnessing an interesting trend with the rise of plant-based ice cream, although it remains a niche sector. Despite some setbacks experienced by brands in this space, such as the withdrawal of Oatly’s dairy-free ice cream tubs in the UK, the European sector achieved a substantial 14% sales growth between 2020 and 2022, according to the Good Food Institute. Mintel research further reveals that 14% of Germans now consume non-dairy ice cream, up from 9% in 2019, indicating an expanding market. Additionally, evidence suggests that consumers are increasingly purchasing both dairy and non-dairy ice cream.
Oats have emerged as the hero ingredient in the plant-based milk alternatives market, and they have now firmly established themselves as a favorite in the ice cream sector. According to Mintel GNPD’s latest findings, around 27% of European plant-based ice cream launches between April 2022 and March 2023 featured oats. This is nearly double the share observed during the same period in 2021-22 and triple the share from 2019-20. Interestingly, oats surpassed almonds as the preferred ingredient in European plant-based ice cream launches, mirroring the growing popularity of oat milk in the plant-based milk sector.
In the UK, young consumers associate oat milk with sustainable farming practices more than other non-dairy milks. This positive perception holds promising implications for oat-based ice cream producers. Capturing this attitude, manufacturers may consider substituting other plant-based ice creams in their existing products with oat variants or introducing oat milk-based options to their current plant-based range.
However, one challenge faced by plant-based ice cream brands is the taste perception. Only 35% of UK consumers believe that non-dairy ice cream is as enjoyable as its dairy-based counterpart. Consequently, brands are striving to exceed consumer expectations by delivering enticing textures, resulting in a growing prevalence of chunky, soft, and crunchy texture claims.
Soyabean is another ingredient flourishing in the UK ice cream market, with 26% of launches in 2022-23 featuring it. This comes in close second to oats, which accounted for approximately 32% of all launches. Ophélie Buchet, Mintel Global Food & Drink Analyst, suggests leveraging the popularity of oat milk among young consumers to market its unique taste and lower environmental impact.
However, while environmental credentials are significant, they alone cannot ensure success for plant-based ingredients. It is vital for these alternatives to deliver on taste, price, and usability, as these factors outweigh sustainability in consumers’ food and drink choices. For example, oat milk has experienced rapid growth due to its approachable flavor profile and product innovation, whereas other alternatives like hemp and pea milk have struggled despite their notable sustainability attributes.
In conclusion, the food and beverage industry is witnessing the growth of plant-based ice cream, with oats emerging as a favored ingredient. This trend, accompanied by the rise of soyabean-based options, presents opportunities for brands to target young consumers and capitalize on the unique tastes and lower environmental footprints of these products. However, it is crucial for brands to prioritize taste, price, and usability alongside sustainability in order to succeed in this evolving market.
