The dairy alternative market comprises products such as soy milk, almond milk, coconut milk and rice milk that are used as substitutes to dairy based milk such as cow milk. Dairy alternative products are largely preferred by vegan and lactose intolerant consumers as they provide similar nutritional benefits as dairy milk without containing lactose or milk solids.
The global Dairy Alternative Market is estimated to be valued at US$ 27.0 Bn in 2024 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:
Growing demand for plant-based dairy products is propelling the dairy alternative market growth. Factors such as increasing health concerns related to dairy products, animal welfare and shift towards veganism has driven the demand for plant-based dairy products across the globe. Consumers are increasingly preferring dairy alternatives not only for health reasons but also due to environmental and ethical concerns related to dairy farms. This has encouraged established dairy product manufacturers as well as startups to extensively invest in Research and Development activities to develop innovative dairy alternative products, thus fueling the market growth over the forecast period.
SWOT Analysis
1. Strength: The dairy alternative market offers plant-based and healthy options for lactose-intolerant consumers and vegans. The products are rich in nutrients such as vitamins, minerals, and proteins.
2. Weakness: Dairy alternative beverages lack certain nutrients present in cow milk such as vitamin D and calcium. The taste of some plant-based products also fails to mimic the taste of dairy milk.
3. Opportunity: Growing vegan and flexitarian consumer base is increasing the demand for dairy alternatives. Product innovation with focus on taste, nutrition, and health is expanding the appeal of these products.
4. Threats: Stricter regulations to curb misleading labeling of dairy alternative products. Rising price of raw materials can increase the cost of the end products.
Key Takeaways
The global dairy alternative market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 27.0 Bn by 2024, expanding at a healthy CAGR of around 10%. Growing health concerns regarding dairy products and increasing vegan and lactose-intolerant population are the major factors fueling the demand for plant-based dairy substitutes.
Regional analysis indicates that North America dominates the global dairy alternative sector currently. The US and Canada have seen rapid adoption of healthy, sustainable, and vegan products. Asia Pacific is identified as the fastest growing regional market. Rising incomes, evolving tastes, and growing health awareness are driving the popularity of non-dairy beverages in countries like China and India.
Key players operating in the dairy alternative market are Danone North America Public Benefit Corporation, The Hain Celestial Group, Blue Diamond Growers, SunOpta, and Sanitarium. These market leaders are focused on introducing innovative product lines targeting specific health benefits and nutritional profiles. They are also investing in promotional campaigns to appeal to the millennial population worldwide.
