Food and Beverages

Dairy Alternatives Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : February 2024

Format :Pdf Ppt Xls

Report ID:KR499

Author : Priyanka V.

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Base Year

2022

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Forecast Year

2023-2030

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Historical Years

2018-2021

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Market Value (2022)

USD 23.85 Billion

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Forecasted Value (2030)

USD 53.89 Billion

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CAGR (2023 - 2030)

10.89%

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Fastest Growing Region (2023 - 2030)

Asia Pacific

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Largest Region

Asia Pacific

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By Source

Soy, Almond, Coconut, Oats, Others.

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By Product Type

Milk, Yogurt, Cheese, Ice cream, Others.

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By Distribution Channel

Retail, Online Stores, Food Service.


Market Perspective

The global Dairy Alternatives Market was valued at USD 23.85 billion in 2022 and is projected to reach USD 53.89 billion by 2030, growing at a CAGR of 10.89% from 2023 to 2030.

The dairy alternatives market has witnessed substantial growth in recent years, driven by changing consumer preferences and increasing awareness of the health benefits associated with plant-based products. Consumers are increasingly opting for dairy alternatives due to various factors, including lactose intolerance, ethical concerns, and environmental sustainability. This shift in consumer behavior has created a lucrative market for dairy alternatives, with a wide range of products such as plant-based milk, yogurt, cheese, and ice cream gaining popularity. Additionally, the trend towards veganism and the growing number of people adopting a plant-based lifestyle has fueled the demand for dairy alternatives. As a result, manufacturers in the industry are continuously innovating and introducing new products to cater to evolving consumer preferences.

Furthermore, the dairy alternatives market is witnessing a growing demand for products with clean labels and natural ingredients. Consumers are becoming increasingly conscious of the ingredients used in their food and beverages, and they prefer products that are free from artificial additives, preservatives, and genetically modified organisms (GMOs). This has prompted manufacturers to focus on sourcing high-quality, natural ingredients and adopting transparent labeling practices. Companies that can offer dairy alternatives with clean-label credentials are likely to gain a competitive edge in the market.

Analyst’s Review on Dairy Alternatives Market

The market for dairy alternatives has witnessed considerable growth in recent times, propelled by evolving consumer choices and trends. The surging demand for dairy alternatives can be attributed to the increasing recognition of the health advantages associated with plant-based products, as well as the rise in veganism and lactose intolerance cases. Additionally, consumers are actively seeking healthier and more environmentally friendly alternatives, leading to a profitable market for dairy alternative products. A key trend driving market expansion is the increasing popularity of almond milk as a widely accepted substitute for dairy. Almond milk has garnered attention due to its distinct nutty taste, smooth consistency, and absence of lactose. Additionally, it serves as a rich source of essential vitamins and minerals, which makes it a preferred and healthier option for numerous individuals.

Furthermore, the dairy alternatives market is experiencing a boom due to the changing consumer preferences and the increasing awareness of the health benefits associated with plant-based products. As more people adopt vegan or flexitarian diets and as lactose intolerance becomes more prevalent, the demand for dairy alternative products is expected to continue to grow. This presents a significant opportunity for companies in the dairy alternatives industry to innovate and cater to the evolving needs of consumers.

Market Definition

Dairy alternatives, also known as plant-based or non-dairy products, are food and beverage options that are specifically designed to replace traditional dairy products such as milk, cheese, and yogurt. These alternatives, made from various plant sources, such as soy, almonds, oats, and coconuts, are gaining popularity among consumers seeking dairy alternatives for various reasons. One of the major factors driving the demand for dairy alternatives is the increasing number of individuals with lactose intolerance or dairy allergies. Additionally, an increasing number of consumers are adopting plant-based diets for health, ethical, or environmental reasons, thereby fueling the growth of the dairy alternatives market. Furthermore, dairy alternatives are often perceived as healthier options due to their lower levels of saturated fat and cholesterol. This appeals to individuals who are conscious of their heart health or weight management. Moreover, the ethical and environmental concerns associated with traditional dairy farming, such as animal welfare and greenhouse gas emissions, have motivated consumers to switch to plant-based alternatives. As a result, the dairy alternatives market is expected to continue to progress as more companies invest in research and development to create innovative and succulent plant-based products.

Market Dynamics

The rising prevalence of lactose intolerance and milk allergies has significantly impacted the growth of the dairy alternatives market. As more individuals are unable to consume traditional dairy products, there has been a growing demand for alternatives that cater to their dietary needs. This shift in consumer preferences has prompted a surge in the availability and variety of dairy alternatives in the market. Additionally, the rising demand for non-dairy alternatives, including almond milk, soy milk, and oat milk, indicates a notable shift in consumer preferences. These choices have become increasingly popular not only among individuals with lactose intolerance or milk allergies but also among those who follow a plant-based diet. This expanded range of dairy alternatives offers a more diverse and easily accessible selection for individuals looking for non-dairy options.

These non-dairy options are not only increasing in availability, but they are also becoming more inventive when it comes to their flavors and textures. Manufacturers are continuously working to develop products that closely mimic the rich and indulgent characteristics of conventional dairy products. This has led to the development of new and exciting options such as coconut milk ice cream, cashew milk yogurt, and even plant-based cheese alternatives. The increasing variety and quality of dairy alternatives have made it easier than ever for individuals with lactose intolerance or milk allergies to find suitable substitutes that not only meet their dietary needs but also satisfy their taste buds. As a result, the dairy alternatives market is projected to grow significantly in the forthcoming years, with a growing number of consumers embracing these products as a healthy and delicious alternative to traditional dairy.

However, the affordability of these alternatives plays a crucial role in their adoption. As prices continue to rise, it becomes increasingly challenging for consumers to make the switch from traditional dairy products to plant-based options.

Segmentation Analysis

The global dairy alternatives market is segmented based on source, product type, distribution channel, and geography.

Based on source, the dairy alternatives market is bifurcated into soy, almond, coconut, oats, and others. The soy segment dominated the market with a share of 52.13% in 2022. Soy-based products have gained immense popularity among consumers due to their creamy texture, mild taste, and versatility in various dairy substitute applications. Additionally, soy-based alternatives have been widely embraced by individuals with lactose intolerance or milk allergies, thereby driving the demand for these products. Furthermore, soy milk is suitable for individuals with lactose intolerance or dairy allergies, as it is completely free of lactose and does not contain any animal products. This makes it a viable alternative for those who follow a vegan or plant-based diet. In recent years, soy milk has received praise for its potential health benefits, such as reducing the risk of heart disease and promoting bone health. Additionally, soy milk has become increasingly popular due to its nutritional benefits and sustainability, making it a preferred option for those seeking a healthy alternative to traditional milk.

Based on product type, the dairy alternatives market is bifurcated into milk, yogurt, cheese, ice cream, and others. The milk segment accounted for the largest market share of 50.24% in 2022, as milk has been a staple in many households, deeply ingrained in dietary habits and cultural traditions. This familiarity and comfort associated with milk make it a natural choice for consumers looking for a dairy alternative. Additionally, milk offers a rich source of essential nutrients such as calcium and vitamin D, which are often deficient in other plant-based alternatives. This nutritional benefit is highly valued by health-conscious consumers who seek a dairy alternative that can provide similar advantages. Furthermore, the versatility of milk and its ability to seamlessly integrate into various recipes and beverages make it an attractive option for consumers seeking a substitute that can mimic the taste and texture of dairy milk. These factors combined have contributed to the continued dominance of the milk segment in the dairy alternatives market.

Based on distribution channel, the dairy alternatives market is bifurcated into retail, online stores, and food service. The retail segment registered the highest market share of 57.39% in 2022. Retail stores offer wide reach and accessibility, which makes it easier for consumers to find and purchase products. Additionally, retail chains often invest in marketing and advertising, creating awareness and demand for dairy alternatives among a larger audience. This increased prominence allows retail brands to establish themselves as trusted and reliable sources for dairy-free options. Moreover, retail stores often provide a diverse range of dairy alternatives, catering to different dietary preferences and needs. As a result, by providing options such as almond milk, soy milk, and oat milk, retail brands can capture a larger market share and attract a broader customer base.

Geographical Analysis

Based on region, the global dairy alternatives market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Dairy Alternatives Market Size & Share, By Region, 2023-2030

Asia-Pacific accounted for the largest market share of 39.65% in 2022, backed by the region's long-standing tradition of plant-based diets, particularly in countries such as India and China, which have a large population of vegetarians and vegans. This cultural preference for plant-based foods has created a strong demand for dairy alternatives, thereby driving market growth in the region. Moreover, governments in the region have contributed to the development of the dairy alternatives market, implementing policies and regulations that promote the production and consumption of plant-based products. This favorable environment has further fueled the growth of the dairy alternatives market in the Asia-Pacific region, making it the leading market globally.

Europe emerged as the second-dominating region with a share of 24.47% in 2022 due to its strong emphasis on sustainability and environmental consciousness. European consumers are increasingly seeking plant-based alternatives as they become more aware of the detrimental effects of traditional dairy production on the planet. This shift in consumer preferences has prompted European companies to invest heavily in research and development, leading to a wide range of innovative and high-quality dairy alternatives that cater to various dietary needs and tastes. Additionally, the rich agricultural heritage and diverse food culture in Europe have allowed for the creation of unique and delicious plant-based alternatives that appeal to consumers. With the availability of these diverse and delicious options, an increasing number of consumers are opting for plant-based alternatives, thereby contributing to a more sustainable and environmentally friendly food system.

Competitive Landscape

The global dairy alternatives market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, could pose new opportunities for market growth.

The major players in the Dairy Alternatives Market are:

Key Developments

  • November 2022 (Product launch): Oatlay Group AB launched a new range of oat-based yogurts. The range of product line includes 4 flavors - strawberry, blueberry, plain, and Greek style.
  • October 2022 (Product launch): Plenish launched a new collection of plant-based products. The selection includes unsweetened enriched milk in almond, oat, and soy variants, all of which are fortified with essential nutrients such as iodine, omega-3, and vitamin D.

The global Dairy Alternatives Market is segmented as:

By Source 

  • Soy
  • Almond
  • Coconut
  • Oats
  • Others

By Product Type

  • Milk
  • Yogurt
  • Cheese
  • Ice cream
  • Others

By Distribution Channel

  • Retail
  • Online Stores
  • Food Service

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America.
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Frequently Asked Questions (FAQ's)
The global dairy alternatives is projected to reach USD 53.89 billion by 2030, growing at a CAGR of 10.89% from 2023 to 2030.
The global dairy alternatives market was valued at USD 23.85 billion in 2022.
The major driving factors for the market growth are changing lifestyle and an increase in demand for plant-based products.
Top manufacturers of dairy alternatives market are ADM, The Whitewave Foods Company, The Hain Celestial Group, Inc., Daiya Foods Inc., Eden Foods, Inc., Nutriops, S.L., Earth’s Own Food Company, SunOpta Inc., Freedom Foods Group Ltd., and OATLY AB, among others.
Asia-Pacific is the fastest growing region in the forecasted period (2023-2030).
By source, soy segment will hold the maximum share in the dairy alternatives market in forecast period.
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