Food and Beverages

Plant-Based Milk Market is Expected to Reach USD 27.69 Billion by 2031

May 2024

Food and Beverages

As per the report published by Kings Research, the global Plant-Based Milk Market was valued at USD 15.51 billion in 2023 and is projected to reach USD 27.69 billion by 2031, growing at a CAGR of 7.5% from 2024 to 2031.

The plant-based milk market has witnessed substantial growth in recent years, primarily driven by increasing consumer consciousness regarding health and environmental benefits associated with these alternatives. As consumers increasingly seek alternatives to traditional dairy products, the demand for plant-based milk options has surged. The market is further projected to expand as more individuals adopt vegan and vegetarian diets. Advancements in food technology have facilitated the development of diverse plant-based milk alternatives, catering to various dietary and taste preferences.

Major players in the food industry have made significant investments in plant-based milk products, thus propelling market growth. As consumers become more aware of the environmental impact of dairy production and the health advantages of plant-based diets, the popularity of plant-based milk is expected to soar. With a range of options, such as almond, soy, oat, and coconut milk, becoming accessible in supermarkets and cafes, individuals are transitioning to non-dairy alternatives. The versatility of plant-based milk in cooking and baking has further contributed to its rising popularity, establishing it as a household staple. As the demand for plant-based milk continues to rise, manufacturers are likely to focus on new innovations and flavors to cater to the diverse needs and preferences of consumers.

Key Insights

  • Based on type, the soy milk segment held the largest market share of 35.1% in 2023
  • Based on application, the hypermarket/supermarket segment generated the highest revenue of USD 6.51 billion in 2023
  • On the basis of region, Asia-Pacific accounted for the largest market share of 30.7% in 2023

New Zealand Functional Foods Received a USD 6 Million Funding Allocation from the New Zealand Government to Expand the Production of Oat Milk

July 2022: New Zealand Functional Foods was granted $6 million in funding by the New Zealand government. The company is in the process of constructing a carbon-neutral oat milk production facility in Makarewa, with a capacity to produce over 65 million liters of milk each year.

Increasing Awareness Regarding the Health Benefits Associated with Plant-Based Milk to Drive Market Growth

The growing awareness among consumers regarding the impact of their dietary choices on personal health and the environment has led to a significant transition towards plant-based alternatives. As individuals become more informed about the advantages of plant-based milk, such as its lower cholesterol content and higher levels of essential vitamins and minerals, they are increasingly opting for these products over traditional dairy options. This increasing awareness is driving the demand for plant-based milk, prompting manufacturers to innovate and expand their product offerings to cater to this expanding market.

Additionally, plant-based milk alternatives increasingly accessible in grocery stores and cafes, thereby facilitating the transition from dairy to plant-based options. With a wider variety of flavors and types of plant-based milk available in the market, consumers are finding options that align with their taste preferences and dietary requirements. The notable shift towards plant-based milk benefits individual health and contributes to a more sustainable and environmentally friendly food system.

Growing Prevalence of Lactose Intolerance and Dairy Allergies to Present Lucrative Opportunities for the  Plant-Based Milk Market Development

The increasing prevalence of symptoms related to lactose intolerance and dairy allergies has resulted in a growing demand for alternatives to traditional dairy products. This change in consumer behavior has led to a surge in the popularity of plant-based milk options, such as almond, soy, and oat milk. These non-dairy alternatives offer a viable solution for individuals who struggle with lactose digestion or experience adverse reactions to dairy products.

Moreover, plant-based milk products are often fortified with essential vitamins and minerals, making them a nutritious choice for individuals seeking a well-rounded diet. Plant-based milk options offer a diverse range of flavors and textures, allowing consumers to find a product that aligns with their individual taste preferences. As the demand for plant-based alternatives continues to rise, more brands are entering the market and offering an expanded selection of non-dairy milk options.

Asia-Pacific Led the Market in 2023 with a Revenue Share of 30.7%

Based on region, the global plant-based milk market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. The Asia-Pacific region has emerged as a leading region in the plant-based milk market in 2023 due to growing awareness among consumers regarding the health benefits associated with consuming plant-based milk alternatives. This increased awareness has fueled the demand for healthier and more sustainable options, thereby fueling the growth of the Asia-Pacific plant-based milk market.

Moreover, the diverse culinary traditions within the Asia-Pacific region has facilitated the emergence of a wide variety of plant-based milk options, catering to different tastes and preferences. This diversity in product offerings has further contributed to the region's dominance in the market. This accessibility to these ingredients has enabled manufacturers to produce high-quality plant-based milk products that meet the demands of the market. These factors have created a favorable environment for the growth of the Asia-Pacific plant-based milk market.

Market Leaders Concentrate on Collaborations and Acquisitions to Sustain Growth

The global plant-based milk market is fragmented with key players such as Bayer AG, Herbalife International of America, Inc., Abbott, Glanbia PLC, DSM, Health Milk Manufacturers' Association, DuPont., U.S. Spice Mills, Inc., Amway, and Premier Nutrition Corporation, among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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