Australia Milk Alternatives Market

Australia Milk Alternatives Market Overview:

The Australia milk alternatives market size reached USD 941.64 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 3,030.74 Million by ​2033​, exhibiting a growth rate (CAGR) of 12.40% during ​2025-2033​. The market is driven by health-conscious consumers turning to plant-based diets, growing preference for environmentally responsible products, and constant innovations across distribution channels. Ongoing product developments and retail expansions are driving shifts in purchasing behavior across diverse demographics and are expected to play a central role in further augmenting the Australia milk alternatives market share.

Australia Milk Alternatives Market Trends:

Shifting Consumer Preferences Toward Plant-Based Diets

In Australia, plant-based consumption has been steadily rising due to a combination of health awareness, ethical considerations, and changing dietary patterns. Consumers are becoming more deliberate in their food choices, often selecting options perceived to be cleaner or more natural. Plant-based milks, derived from almonds, oats, soy, coconut, and other sources, are viewed by many as healthier alternatives to traditional dairy. This preference is not limited to vegan or vegetarian demographics. A broader group of flexitarians, who still consume animal products but in reduced quantities, is fueling steady growth in demand. Concerns related to lactose intolerance and dairy sensitivities are also pushing consumers toward these options. Retailers have responded with expanded shelf space and diverse product offerings, reinforcing consumer confidence in these alternatives. On April 29, 2025, a recent industry report indicated that plant-based milk companies, including Eclipse Foods and Asahi Group, are shifting focus toward replicating the exact taste and texture of dairy milk to better meet consumer expectations. Eclipse Foods launched a Non-Dairy Whole Milk using pea and chickpea proteins to match cow’s milk properties, while Asahi's Like Milk, made from fermented yeast, offers equivalent protein content and allergen-free claims. These innovations respond to the survey data showing that 57% of consumers avoid plant-based milk due to unsatisfactory taste or texture, despite growing interest in non-dairy alternatives. The shift is also evident in cafes and restaurants, wherein plant-based milks are now offered as standard, rather than niche, options. These evolving patterns are setting the stage for sustained Australia milk alternatives market growth.

Innovations and Product Diversification Across Retail Channels

Product variety has become a decisive factor in purchasing decisions. In recent years, the range of milk alternatives available in Australia has expanded significantly, both in terms of base ingredients and value-added features. Brands are offering options that cater to specific dietary needs, including calcium-enriched, protein-enhanced, unsweetened, and barista-grade versions. This segmentation allows consumers to find products tailored to taste, nutrition, and usage occasion. Additionally, texture, frothing ability, and flavor customization have become competitive differentiators, especially in foodservice and coffee culture contexts. Retail innovation is also central to this trend. Online grocery platforms, health-focused retailers, and even subscription models are providing easier access to a broader selection of alternative dairy options. According to IMARC Group, Australia online grocery market size reached USD 14,202.0 Million in 2024. The market is further anticipated to reach USD 80,239.7 Million by 2033, projecting a growth rate (CAGR) of 21.22% during ​2025-2033​. In line with this, online grocery platforms often offer emerging brands a route to market without requiring large-scale distribution. This shift supports experimentation, rapid feedback, and agile product development. In-store experiences, such as sampling and promotions, are further enabling consumer discovery. Meanwhile, partnerships between plant-based producers and cafes or QSR chains are reinforcing the mainstream appeal of these products. The capacity to serve distinct consumer needs through innovation, coupled with efficient retail strategies, is reinforcing demand in a competitive and growing category.

Australia Milk Alternatives Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for ​2025-2033​. Our report has categorized the market based on source, flavor, packaging, and distribution channel.

Source Insights:

• Soy
• Almond
• Coconut
• Oats
• Rice
• Others

The report has provided a detailed breakup and analysis of the market based on the source. This includes soy, almond, coconut, oats, rice, and others.

Flavor Insights:

• Flavored
• Unflavored

The report has provided a detailed breakup and analysis of the market based on the flavor. This includes flavored and unflavored.

Packaging Insights:

• Cartons
• Glass bottles
• Others

The report has provided a detailed breakup and analysis of the market based on the packaging. This includes cartons, glass bottles, and others.

Distribution Channel Insights:

• Online
• Offline

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes online and offline.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all major regional markets. This includes Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Milk Alternatives Market News:

• On October 3, 2023, Breakthrough Victoria announced an investment of up to USD 3.9 Million (AUD 6 Million) in Eden Brew, an Australian company developing animal-free dairy through precision fermentation. The funding forms part of a USD 15.9 Million (AUD 24.4 Million) Series A round, which includes investors such as Main Sequence Ventures, Orkla, and Digitalis Ventures. Eden Brew will use the funds to pursue regulatory approvals, expand production of its animal-free milk and ice cream, and establish its headquarters and manufacturing operations in Melbourne.

Australia Milk Alternatives Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia milk alternatives market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia milk alternatives market on the basis of source?
• What is the breakup of the Australia milk alternatives market on the basis of flavor?
• What is the breakup of the Australia milk alternatives market on the basis of packaging?
• What is the breakup of the Australia milk alternatives market on the basis of distribution channel?
• What is the breakup of the Australia milk alternatives market on the basis of region?
• What are the various stages in the value chain of the Australia milk alternatives market? 
• What are the key driving factors and challenges in the Australia milk alternatives market?
• What is the structure of the Australia milk alternatives market and who are the key players?
• What is the degree of competition in the Australia milk alternatives market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia milk alternatives market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia milk alternatives market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia milk alternatives industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.