Sales of Non-Dairy Drinks Surge in Europe

LONDON—The European market for non-dairy drinks is expanding by over 20 percent per annum, and sales will reach EUR 600 million (U.S.$719.5 million) in 2005, according to a new report by Organic Monitor (www.organicmonitor.com) titled “The European Market for Non-Dairy Drinks.”

Growth in this sector is a reflection of product innovations and escalating consumer demand for health beverages; soy milk is particularly popular due to its association with lower incidence of heart disease, osteoporosis and breast cancer, the report stated.

Initially, the bulk of consumer demand for non-dairy drinks was driven by consumers with lactose intolerance; however, demand has broadened to include consumers seeking functional beverages and healthy alternatives to dairy milk.

“Manufacturers are re-positioning non-dairy drinks by launching new products as functional beverages and soft drinks,” said Angelique Anthian, consultant at Organic Monitor. “Fresh soy milk, which competes directly with dairy milk on retail shelves, is the fastest growing segment in the British nondairy drinks market. Market winners will be those companies that adopt strategies based on product differentiation as non-dairy drinks become increasingly commoditized.”