Kraft Heinz has launched its first plant-based dessert, Jell-O Oat Milk Chocolate Pudding, marking a significant step in its growing commitment to plant-based innovation. The new offering, designed for dairy-allergic, lactose-intolerant, and vegan consumers, taps into the booming plant-based dessert market while preserving the iconic taste and texture of the 125-year-old Jell-O brand.
The launch follows Kraft Heinz’s broader push into plant-based foods, driven largely by its partnership with food tech innovator NotCo. The collaboration has already produced plant-based versions of Kraft Mac & Cheese, Kraft Singles, Oscar Mayer hot dogs, and NotMayo, reflecting the company’s strategy to cater to evolving consumer preferences. With the global oat-based food market valued at $5.2 billion in 2023 and projected to grow at a 7% compound annual growth rate through 2030, according to Grand View Research, Kraft Heinz is positioning itself to capture a slice of this expanding segment.
Meeting a Growing Demand
The plant-based dessert category is experiencing double-digit growth, fueled by rising consumer demand for dairy-free options. More than 30% of Americans are lactose intolerant, and milk allergies affect nearly two million children annually, creating a significant market for alternatives. Yet, Kraft Heinz notes that plant-based desserts often fall short on taste and texture, leaving room for innovation.
“We’ve identified plant-based desserts as a growing segment in need of a better, more prominent offering,” said Lauren Gumbiner, Associate Director of Marketing, Desserts at Kraft Heinz. “Our chocolate pudding is a timeless classic, and now, with our lactose-free and vegan oat milk version, we’re excited to allow more families to enjoy it.”
The Jell-O Oat Milk Chocolate Pudding leverages oat milk’s creamy consistency and mild flavor to replicate the signature Jell-O experience. Oat milk, celebrated for its taste and sustainability credentials, has become a go-to ingredient for plant-based products, outpacing alternatives like almond milk in consumer preference. Kraft Heinz’s choice aligns with industry trends, as companies like Unilever’s Ben & Jerry’s, which switched to oat-based plant-based ice creams in 2023, and Hershey, which introduced oat-based confections under its namesake and Reese’s brands, have also embraced oats.
Strategic Expansion in Plant-Based Foods
Kraft Heinz’s foray into plant-based desserts is part of a broader strategy to evolve its portfolio alongside shifting consumer diets. The company’s partnership with NotCo has been instrumental, blending Kraft Heinz’s brand legacy with NotCo’s expertise in plant-based formulation. This collaboration has enabled Kraft Heinz to rapidly expand its plant-based offerings, from savory staples like hot dogs and cheese to condiments like mayonnaise, and now into the dessert category.
While the oat milk pudding is unlikely to surpass sales of traditional Jell-O, it serves a critical purpose: retaining consumers who might otherwise turn to competitors due to dietary restrictions or lifestyle choices. By offering a familiar product in a plant-based format, Kraft Heinz ensures brand loyalty among health-conscious and ethically driven shoppers.
“The plant-based movement isn’t just a trend—it’s a market reset,” said an industry analyst. Consumers, especially millennials and Gen Z, are seeking clean-label, sustainable options that don’t compromise on taste. Kraft Heinz is smart to lean into this with a trusted brand like Jell-O.”
Tapping Into Domestic Trends for Global Impact
India’s domestic seasoning market, valued at $2.82 billion in 2024 and projected to reach $4.06 billion by 2030, offers a blueprint for Kraft Heinz’s global ambitions. Urban Indian consumers, with rising incomes and exposure to global cuisines, are driving demand for premium, health-focused products. The Household Consumption Expenditure Survey (February 2024) reported urban monthly spending at $77.95 per person, reflecting a shift toward branded, convenient options. This trend mirrors the U.S. market, where plant-based desserts are gaining traction among similar demographics.
Kraft Heinz’s Jell-O Oat Milk Chocolate Pudding is poised to resonate with these consumers, offering a lactose-free, vegan-friendly dessert that aligns with wellness and sustainability goals. The product’s clean-label credentials and familiar branding make it a strong contender in both domestic and international markets, particularly in regions with growing plant-based demand like Europe and Asia.
Challenges and Opportunities
The plant-based dessert market is not without challenges. Regulatory scrutiny around labeling, ingredient sourcing, and safety testing is intensifying, particularly for small and medium enterprises. Kraft Heinz, with its global scale and NotCo’s technological expertise, is well-positioned to navigate these hurdles, but the company must maintain transparency to build consumer trust.
Additionally, competition is heating up. Unilever and Hershey have already staked claims in the oat-based dessert space, while smaller, niche brands are carving out loyal followings with artisanal offerings. Kraft Heinz’s advantage lies in its brand recognition and distribution network, which can deliver Jell-O Oat Milk Chocolate Pudding to supermarkets, hypermarkets, and e-commerce platforms with ease.
The rise of e-commerce and quick-commerce platforms, particularly in India’s tier-II and tier-III cities, offers a model for global expansion. In India, 56% of consumers still buy loose spices, but younger shoppers (aged 26–32) are driving a shift toward branded, single-use sachets. Similarly, Kraft Heinz can leverage digital channels to reach plant-based consumers worldwide, offering convenient formats like single-serve pudding packs or subscription models.
A Flavorful Future
Kraft Heinz’s launch of Jell-O Oat Milk Chocolate Pudding signals a bold step toward redefining its portfolio for a plant-based future. By tapping into the growing demand for dairy-free desserts, the company is not only meeting consumer needs but also reinforcing its position as an innovator in the food industry. The product’s oat milk base, clean-label appeal, and iconic branding make it a compelling addition to the plant-based dessert category, with potential to resonate across diverse markets.
As consumer preferences continue to evolve, Kraft Heinz’s strategic focus on plant-based innovation positions it to capture a growing share of the multi-billion-dollar plant-based food market. With the Jell-O brand leading the charge, the company is proving that even a 125-year-old classic can find new life in a modern, health-conscious world. The kitchen is changing, and Kraft Heinz is ready to own its place in it.