News Analysis
From vegan ice cream to almond-based creamers, a widening array of alternatives signals a growing shift in product focus for major dairy brands and food retailers alike.
July saw 2 mega-rounds for alternative dairy makers. Oat milk maker Oatly raised a $200M private equity round, giving it a $2B valuation. Perfect Day, a producer of animal-free dairy proteins, added $160M to its Series C, bringing it to $300M. This follows other big recent announcements, such as the $225M Series D round raised by Califia Farms in January.
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These announcements are happening at a time when major dairy producers are struggling. For example, iconic industry player Borden Dairy filed for bankruptcy in January — just 2 months after its rival Dean Foods filed for Chapter 11.
Others are repositioning. Canada-based dairy producer Saputo announced the closing of 2 plants earlier this year, while also expressing plans to diversify into plant-based alternatives.
Below, we look at this shift to understand why these investments matter and what it means for the dairy space.
3 big takeaways
- Investors are betting big on dairy alternatives amid changing consumer attitudes to nutrition and rising sustainability concerns.
- Startups are carving out new solutions and categories in the dairy alternatives space, ranging from plant- and nut-based alternatives to cellular agriculture.
- The increasing diversification of product offerings could fuel adoption growth and cement brand loyalties.
