The dairy alternative market includes plant-based products such as almond milk, soy milk, oat milk and rice milk. These products provide similar nutrition to cow’s milk and are a suitable choice for people with dairy sensitivities or vegan preferences. The dairy alternatives market space has grown significantly over the past decade owing to changing consumer preferences towards plant-based and sustainable food options. The Global dairy alternative market is estimated to be valued at US$ 27.0 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period of 2023 to 2030.
Key Takeaways
Key players operating in the dairy alternative market are Danone North America Public Benefit Corporation (US), The Hain Celestial Group, Inc. (US), Blue Diamond Growers (US), SunOpta (Canada), Sanitarium (New Zealand).
The key opportunities in the dairy alternative market include new product innovations targeting specific health benefits like plant proteins, probiotics, organic certifications etc. Improvement in taste and texture of plant-based products to better mimic dairy also presents an opportunity for growth.
Asia Pacific region has emerged as one of the fastest growing market for dairy alternatives led by countries like China, India and Japan. Rising disposable incomes and growing health awareness is fueling the demand for sustainable and plant-based products in the region. North America and Europe are also major contributors to the global market.
Market Drivers
Growing health consciousness among consumers regarding the cholesterol and lactose content in conventional dairy products is a key driver for the dairy alternative market. Rising prevalence of dietary restrictions such as veganism, lactose intolerance and milk allergies is prompting consumers to choose dairy-free milk options. Advancements in plant-based food technology have led to significant improvements in the taste, nutrition and texture of dairy alternatives making them viable substitutes.
PEST Analysis
Political: The dairy alternative market is regulated by food and labelling regulations. Any changes to regulations could impact the market.
Economic: Consumer incomes and discretionary spending influence demand for dairy alternatives. Fluctuations in the economy could impact sales.
Social: Changing dietary preferences and trends towards veganism and plant-based products are driving market growth. Health and wellness trends are also supporting demand.
Technological: New processing and formulation techniques are resulting in dairy alternatives with improved taste, texture and nutrition profiles that closely mimic dairy. This is helping increase adoption rates.
Market Concentration by Geography
The dairy alternative market in terms of value is highly concentrated in North America and Europe. North America accounts for the largest share, led by the United States where changing consumer preferences are supporting demand. Europe is also a major regional market driven by growth in plant-based product awareness in countries like Germany and the United Kingdom. The regional markets in Asia Pacific and Latin America are growing rapidly however, their current market shares in terms of value are smaller compared to North America and Europe.
Fastest Growing Regional Market
The fastest growing regional market for dairy alternatives is Asia Pacific. Emerging economies like China and India have large populations and rising incomes are driving increased spending on health and wellness products. Lactose intolerance is also prevalent. Additionally, Western influences are raising plant-based awareness in the region. These factors are fueling double-digit growth rates and the Asia Pacific market is expected to become a major dairy alternative market globally in the coming years, supported by its sizable consumer demographic.
“*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it”