Propelled by rising demand for plant-based foods, the dairy alternative market has grown tremendously

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The dairy alternative market comprises of products made from plant-based raw materials as an alternative to dairy. This includes products like plant-based milk made from soy, almonds and oats. Dairy alternative products are increasingly being consumed by people suffering from lactose intolerance, milk allergies or following a vegan/plant-based diet. The global dairy alternative market is estimated to be valued at US$27.0 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The rising demand for plant-based foods has significantly propelled the growth of the dairy alternative market over the past few years. People are increasingly shifting towards vegan and plant-based diets due to health and environmental concerns related to dairy products. The health advantages associated with soy, almond and oat milk such as lower cholesterol and risk of type 2 diabetes as compared to cow milk is also driving more people to opt for dairy alternative products.

SWOT Analysis

  • Strength: Dairy alternative products like soy milk, almond milk and coconut milk are gaining popularity among consumers due to factors like lactose intolerance, dairy allergies, rising health consciousness.
  • Weakness: High cost of dairy alternative products compared to dairy milk restricts its adoption among price-sensitive consumers. Complex manufacturing process increases production cost.
  • Opportunity: Growing demand for plant-based and vegan foods and beverages and novel product launches in alternative dairy category presents an opportunity for market expansion. Rising cases of milk allergies also boosts market growth.
  • Threats: Stricter regulatory norms associated with labelling of dairy alternative products prevents wider acceptance. Consumers are often confused whether the products are equivalent substitutes to dairy milk.

Key Takeaways

The global dairy alternative market is expected to witness high growth. The market size is forecasted to reach US$ 27.0 Bn in 2023 and is projected to surpass US$ 40.0 Bn by 2030, registering a CAGR of 10%.

Regional analysis: North America dominates the global dairy alternative market and is expected to maintain its leading position throughout the forecast period. The region accounts for over 35% of the global market share owing to rising lactose intolerance, vegan lifestyle changes and product innovations in the US and Canada. Asia Pacific exhibits the fastest growth and is estimated to register a CAGR of 12% during 2023-2030, led by booming populations and changing dietary habits in India and China.

Key players: 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). These top players have strong brand recognition and enjoy leading market shares. They are focusing on product innovations, expanding into specialty retail channels and strategic mergers & acquisitions to strengthen their foothold in the dynamic dairy alternative sector.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.