The move comes as demand for plant-based dairy products accelerates globally. A recent Roland Berger report highlights that plant-based dairy is no longer a niche market . Growth rates are outpacing conventional dairy, with health, environmental, and ethical concerns driving consumer behaviour. Notably, consumers expect better taste, broader product variety, and competitive pricing — factors that have historically limited the plant-based segment’s market share. Kraft’s decision to replicate the familiar texture and flavour of its classic puddings directly aligns with these shifting expectations.

The choice of oat and coconut milk also reflects broader ingredient diversification trends. Roland Berger points out that while soy was once dominant, newer bases like oat and coconut have become preferred for taste and allergen reasons 2. Kraft’s product formulation places it in line with these evolving consumer preferences, offering a familiar product in a format that meets new dietary demands.

The timing of the launch corresponds with strong category momentum. According to Vegconomist, plant-based dairy sales in Western Europe grew by 9% in 2022, while North America saw a 7% increase . Growth is being fueled by improved product quality, better retail distribution, and increased mainstream acceptance 3. Plant-based dairy alternatives are gaining more shelf space in supermarkets, giving brands like Kraft greater visibility with a broader consumer base.

Despite these favorable trends, competition is intensifying. Numerous startups and established players are expanding their plant-based portfolios. However, Kraft brings significant brand recognition and retail reach, which may help its plant-based Jell-O gain early traction in an increasingly crowded market.