Food and Beverages

Dairy Alternatives Market is Expected to Reach USD 53.89 billion by 2030

Mar 2024

Food and Beverages

As per the report published by Kings Research, 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 market for dairy alternatives has witnessed substantial growth in recent times. There has been an increase in the number of individuals adopting plant-based diets and a greater awareness of lactose intolerance and other dairy-related allergies, which is fueling market growth. Consequently, the demand for dairy alternatives has seen a significant rise. Additionally, concerns regarding animal welfare and sustainability have played a vital role in boosting the popularity of dairy alternatives. Furthermore, advancements in food technology have resulted in the creation of more appealing and nutritious alternatives to dairy products. For instance, companies have successfully developed plant-based milk alternatives that closely resemble the taste and texture of traditional dairy milk, facilitating a smooth transition for consumers to non-dairy options. Furthermore, a wide variety of dairy alternatives, such as almond milk, soy milk, coconut milk, and oat milk, are readily available, providing consumers with ample choices to cater to their preferences and dietary requirements. As a result, the dairy alternatives market is expected to continue its positive growth trajectory in the foreseeable future.

Key Insights

  • Based on source, the soy segment held the largest market share of 52.21% in 2022
  • Based on product type, the milk segment accounted for 50.24% of the segment’s share in 2022
  • On the basis of region, Asia-Pacific garnered the largest market share of 39.65% in 2022

Espresso House Partnered with Oatly to Serve Oastly Barista Edition

In September 2022, Espresso House, a Swedish coffee chain with 35 locations in Germany, broadened its collaboration with Oatly. This extension involved offering the Oatly Barista Edition in its cafés throughout the Nordic countries and Germany.

Growing Health Consciousness Among Consumers to Drive Market Growth

The rise in health awareness among consumers is fueling the expansion of the dairy alternatives market. This trend is largely due to more people recognizing the potential health concerns related to dairy consumption, including lactose intolerance and allergies. This awareness has led consumers to seek alternative options that can provide similar nutritional benefits without the potential drawbacks. For instance, a large number of people are turning to plant-based milk alternatives such as almond milk, soy milk, or oat milk, which offer similar levels of calcium and protein as dairy milk, but without the lactose or cholesterol. Additionally, the rise of veganism has contributed to the surging demand for dairy alternatives, as these dietary choices often exclude animal products, including dairy. As a result, consumers are actively looking for products such as plant-based yogurts, cheeses, and ice creams, further fueling the growth of the dairy alternatives market.

Increasing Demand for Flexitarian Diets to Boost the Growth of Dairy Alternatives Market

Increasing demand for flexitarian diets is supporting the growth of the dairy alternative market, fueled by rising awareness of the environmental impact of animal agriculture. Many consumers are increasingly opting for flexitarian diets, which involve reducing meat and dairy consumption while incorporating more plant-based alternatives into their meals. This shift in dietary preferences is fueled by growing concerns over animal welfare, sustainability, and personal health, leading to a surge in the demand for dairy alternatives such as almond milk, soy milk, and oat milk. As a result, the dairy alternative market is experiencing a significant expansion, with new products and brands entering the market to meet the increasing demand. Additionally, advancements in technology and manufacturing processes have allowed for the development of more innovative and diverse dairy alternatives, thereby propelling the growth of this market. With the convenience, taste, and nutritional benefits offered by dairy alternatives, the trend towards flexitarian diets and the demand for dairy alternatives are anticipated to continue to rise in the coming years.

Europe to Emerge as the Second Largest Market for Dairy Alternatives with a Value of USD 12.91 Billion by 2030

Europe is likely to witness substantial growth in the dairy alternatives market due to its long-standing tradition of plant-based diets, with countries such as Germany and the Netherlands leading the way in vegan and vegetarian lifestyles. This cultural acceptance and familiarity with non-dairy alternatives have created a strong consumer demand for these products. Additionally, Europe has a well-established infrastructure for food production and distribution, allowing for a wide range of dairy alternative products to be readily available to consumers. This accessibility has further fueled the growth of the market in the region. Furthermore, European consumers are becoming increasingly conscious of the environmental impact of dairy production, leading them to seek sustainable and plant-based alternatives. This awareness and preference for eco-friendly options have contributed to the expansion of the dairy alternatives market in Europe.

Market Players Focusing on Launching New Products to Gain a Competitive Edge in the Market

The global dairy alternatives market is consolidated with key players, such as 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. These firms are concentrating on expanding their business through collaboration and partnership strategies.

Get the latest!

Get actionable strategies to empower your business and market domination

  • Deliver Revenue Impact
  • Demand Supply Patterns
  • Market Estimation
  • Real-Time Insights
  • Market Intelligence
  • Lucrative Growth Opportunities
  • Micro & Macro Economic Factors
  • Futuristic Market Solutions
  • Revenue-Driven Results
  • Innovative Thought Leadership