Why plant milk is so expensive in Greece

Given that almost every company has released their own version of plant-based milk over the past five years, it’s puzzling why “related” products are still noticeably more expensive per liter than their animal-based counterparts.

Plant-based milk has taken a firm place on the supermarket shelves, and despite being significantly more expensive than animal-based milk, it has gained consumer preference in recent years. Accordingly, the drink won its audience vegetable milk coffeewhich sells well.

The craze for veganism and raw foodism has led to a lot of criticism of dairy products of animal origin. Adherents of such views have found an alternative. Vegetable milk is an extract from cereals, seeds, nuts. With the nutrient fluid produced by the mammary glands of mammals, this product has nothing in common, except for the appearance. Although it contains many useful substances, it cannot be called an absolute substitute for cow’s. They have different compositions, so nutritionists consider their comparison incorrect. A person needs different micro- and macronutrients, and it is impossible to replace one with another.

Greek consumers seem to have accepted the higher price of this product. The markup no longer seems like a deterrent. “A consumer who wants plant-based rather than animal milk in his drink is willing to pay a little more,” says a spokesman for the fast food store Γρηγόρης.

But given that, especially in the last five years, almost every company has launched its own version of plant-based milk, yogurt, cheese, ice cream or various types of cream, it is puzzling why they all cost noticeably more per liter than the corresponding animal products.

Demand is growing
Let’s look at the situation from the very beginning. In 2017, when a large number of Greek companies entered the “game” with the production of vegetable drinks, the market was valued at 11.7 million euros, and the volume reached 4,000 tons.

Since then, the market, although still “young”, has shown a steady growth of 30% annually, according to data from Olympus and DELTA.

The only exception to the rule was 2022, when the cost and volume of production, compared to the previous year, decreased by an average of 2.9% and 8.1%, respectively. Income from vegetable drinks last year amounted to 34.7 million euros, and the volume was 12,800 tons. Now many large companies offer more than 10 product codes, “milk substitutes”.

However, market participants seem to agree that the 2022 setback was temporary as some of the food industry’s biggest players intend to invest in further expansion of the plant-based drinks category. “Given the trends that are emerging both in the Greek and global markets, we have good reason to believe that its development in Greece is just the beginning,” says an Alpro representative.

For its part, a DELTA spokesman said:The category of plant-based drinks in Greece is still in its infancybut we appreciate it future outlook as positivewhen compared with the markets of Italy, England and Germany.

This is due to rapid changes in consumer preferences, since there is not only the tendency to switch to “healthy eating”, but the population also takes into account the “environmental problems” in agriculture. In addition, consumers are looking for other offers such as alternative foods for people with lactose intolerance or drinks that are high in protein.

However, in the current period, the Greeks prefer the almond drink first, and in the context of the transition to healthier foods, the sugar-free version of it, followed by coconut and soy milk.

Why plant milk is so expensive

At the same time, an important factor that determines the prices of vegetable milk is the change in weather conditions, as they affect the harvest of fruits and cereals, which often leads to a shortage of raw materials. In addition, the “inexperience” of the Greek market leads to higher prices. As a DELTA representative explains, companies must invest in research and development (R&D) to develop new recipes, as well as purchase appropriate equipment. On the other hand, of course, there is a need for proper education and information for the consumer public. Advertising also incurs additional costs.

“Plant-based drinks have a higher price per liter than animal-based drinks. Also, vegan recipes use more product than animal milk to get the right level of milk frothing,” notes a spokesperson for Γρηγόρης.

However, there is still hope for a “bright future” (in terms of lower prices), provided that the market and production volumes of vegetable milk will expand. As an Olympus representative explains:The more the product develops and becomes more widespread, the more the increase in volume leads to synergy, which helps to reduce the cost of its production and distribution. However, as long as the product is innovative and premium, its cost is naturally higher compared to other, more common and well-known products.”

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