Dairy Alternatives Market Size:
The global dairy alternatives market size reached US$ 31.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 73.3 Billion by 2032, exhibiting a growth rate (CAGR) of 9.7% during 2024-2032. The market is driving due to increasing consumer focus on health, sustainability, and the introduction of innovative product offerings, with plant-based options gaining popularity worldwide in response to changing dietary preferences and environmental concerns.
Report Attribute
|
Key Statistics
|
Base Year
|
2023 |
Forecast Years
|
2024-2032
|
Historical Years
|
2018-2023
|
Market Size in 2023
|
US$ 31.1 Billion |
Market Forecast in 2032
|
US$ 73.3 Billion |
Market Growth Rate 2024-2032 |
9.7%
|
Dairy Alternatives Market Analysis:
- Market Growth and Size: The dairy alternatives market is experiencing robust growth, driven by health-conscious consumers and environmental concerns. It is projected to continue expanding, with a global market size expected to reach billions of dollars in the coming years.
- Major Market Drivers: Key drivers include health and wellness trends, environmental sustainability, innovative product offerings, retail and foodservice expansion, and global dietary diversity, as consumers seek healthier, more sustainable, and diverse options.
- Technological Advancements: Continuous innovation has led to improved plant-based products that closely resemble traditional dairy items, enhancing consumer acceptance and market growth.
- Industry Applications: Dairy alternatives are not limited to milk but extend to dairy-free cheese, yogurt, ice cream, and butter alternatives, catering to a wide range of consumer preferences.
- Key Market Trends: Trends include the rise of veganism, the adoption of regenerative farming practices, and the customization of alternatives to meet regional tastes, indicating a dynamic and growing market.
- Geographical Trends: Regional preferences and dietary habits influence the popularity of specific alternatives, with variations in demand for soy, almond, oat, and coconut-based products across different markets.
- Competitive Landscape: The market is highly competitive, with both established players and new entrants vying for market share. Companies are increasingly focusing on sustainability and product innovation to gain a competitive edge.
- Challenges and Opportunities: Challenges include regulatory complexities and the need for product differentiation. However, opportunities abound in catering to the growing demand for dairy alternatives, especially in emerging markets, and in developing unique, sustainable, and region-specific offerings.
Dairy Alternatives Market Trends:
Health and wellness trends:
Growing consumer awareness of health and wellness, including lactose intolerance, dairy allergies, and concerns about animal welfare, is a significant driver of the market. Consumers are increasingly seeking plant-based options as they perceive them to be healthier choices. This shift in consumer preferences is driven by the desire for products that are lower in saturated fats, cholesterol-free, and often fortified with essential vitamins and minerals. As a result, almond, soy, oat, and coconut-based alternatives have gained popularity due to their perceived health benefits. Additionally, the rise of veganism and flexitarian diets has further propelled the market on a global level.
Environmental sustainability
Concerns about the environmental impact of dairy production have become a pivotal driver in the growth of the alternatives. The dairy industry is associated with significant greenhouse gas emissions, water usage, and land usage. Consumers, especially those who are environmentally conscious, are opting for alternatives as a more sustainable choice. Plant-based options generally have a lower environmental footprint, leading to increased adoption. Moreover, the adoption of regenerative and sustainable farming practices by some dairy alternative producers further reinforces the perception of these products as eco-friendly choices. Companies in the market can benefit from highlighting their sustainability efforts in their marketing strategies to align with this growing consumer sentiment.
Innovative product offerings:
Continuous innovation in the sector is also supporting the market. Leading players are constantly developing new and improved plant-based products to mimic the taste and texture of traditional dairy items. This innovation extends beyond milk to include dairy-free cheese, yogurt, ice cream, and even butter alternatives. The ability to offer a wide range of dairy-free options that closely resemble their dairy counterparts has expanded the consumer base for these products. Additionally, continual advancements in food technology, such as the use of novel ingredients and processing techniques, are enhancing the nutritional profile of these products, making them appealing to health-conscious consumers.
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
Dairy Alternatives Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on source, formulation, nutrient, distribution channel and product type.
Breakup by Source:
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
- Almond
- Soy
- Oats
- Hemp
- Coconut
- Rice
- Others
Soy accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the source. This includes almond, soy, oats, hemp, coconut, rice, and others. According to the report, Soy represented the largest segment.
Soy-based alternatives hold the dominant position in the market, driven by their long-established presence and robust consumer acceptance. They are preferred by many due to their nutritional profile, similar texture to dairy milk, and versatility in various applications. Soy milk, yogurt, and tofu-based products continue to lead the way in this segment, appealing to both vegans and individuals with lactose intolerance. Additionally, they are a good source of isoflavones, compounds that have been linked to various health benefits, including a reduced risk of heart disease and osteoporosis. The low levels of saturated fat in soy products also contribute to their popularity among health-conscious consumers.
On the other hand, almond-based alternatives have gained popularity for their nutty flavor and nutritional benefits. They are often chosen for their lower calorie content and high vitamin E levels, making them a preferred choice among health-conscious consumers. Almond-based alternatives have gained popularity for their nutty flavor and nutritional benefits. They are often chosen for their lower calorie content and high vitamin E levels, making them a preferred choice among health-conscious consumers.
Moreover, oat-based alternatives are rapidly growing in popularity, appreciated for their creamy texture and mild taste. These alternatives are also rich in dietary fibers, particularly beta-glucans, known for their cholesterol-lowering effects. Oat-based products are a good source of vitamins B and iron, contributing to energy metabolism and overall health. The environmentally friendly aspect, combined with health benefits, positions oat-based alternatives as a top choice for eco-conscious and health-aware individuals.
Additionally, hemp-based products are gaining traction for their rich nutrient profile, including omega-3 fatty acids, which are beneficial for heart health and cognitive function. They are also a good source of plant-based protein and essential amino acids, making them a great option for vegetarians and vegans. Hemp-based alternatives are also known for their digestibility and are less likely to cause allergies compared to soy and nut-based options.
Moreover, coconut-based alternatives are known for their tropical flavor and suitability in both sweet and savory dishes. They are also a good source of medium-chain triglycerides (MCTs), which are metabolized differently than other fats and can aid in energy production. Coconut-based products are lactose-free and can be a good option for those with lactose intolerance or dairy allergies.
Furthermore, rice-based options are generally low in fat and free from cholesterol, making them a heart-healthy choice. Additionally, rice-based alternatives are hypoallergenic, posing minimal risk of allergic reactions, which is particularly beneficial for individuals with nut or soy allergies. They are often enriched with vitamins and minerals, such as calcium and vitamin D.
Breakup by Formulation:
Plain formulation holds the largest share in the industry
A detailed breakup and analysis of the market based on the formulation have also been provided in the report. This includes plain (sweetened and unsweetened) and flavored (sweetened and unsweetened). According to the report, plain formulation accounted for the largest market share.
The plain formulation segment holds the largest share in the alternatives market, reflecting consumer's preference for unflavoured, versatile options that can be used in various culinary applications. Products, such as plain almond milk, soy milk, and oat milk are favored for their neutrality, making them suitable as a milk substitute in coffee, baking, or cooking. This segment caters to health-conscious individuals who seek a dairy-free alternative without added sugars or flavorings, allowing them to customize the taste to their liking.
On the other hand, the flavored formulation segment has been gaining traction as consumers look for more indulgent and convenient options. Offering a range of tastes like vanilla, chocolate, and strawberry, these flavored alternatives appeal to the consumers desiring a sweeter, tastier experience, combining the benefits of alternative dairy with diverse, appealing flavors that cater to a broader palate.
Breakup by Nutrient:
- Protein
- Starch
- Vitamin
- Others
Protein represents the leading market segment
The report has provided a detailed breakup and analysis of the market based on the nutrient. This includes protein, starch, vitamin, and others. According to the report, protein represented the largest segment.
Protein-based alternatives stand out as the largest segment in the market, primarily driven by consumer's focus on health and fitness. These products are fortified with additional plant-based proteins, such as pea protein, soy protein, or almond protein, to provide a protein-rich alternative to traditional dairy products. They cater to individuals seeking a dairy-free source of protein for muscle recovery and overall nutrition. Protein-based alternatives are widely used in post-workout shakes, smoothies, and as a dairy milk substitute in various applications.
On the other hand, starch-based alternatives, such as those derived from tapioca or cornstarch, cater to a unique niche in the market. They offer a creamy and thick texture, ideal for dairy-free custards, puddings, and creamy soups. These alternatives are appreciated for their ability to mimic the mouthfeel of traditional dairy-based thickened products, making them a favored choice for culinary enthusiasts.
Furthermore, vitamin-enriched alternatives are designed to meet specific dietary needs by providing essential nutrients like calcium, vitamin D, and vitamin B12. Targeting vegans and those requiring fortified options, these products are crucial for bone health and overall well-being. They bridge the nutritional gap in diets lacking in these key vitamins and minerals.
Breakup by Distribution Channel:
- Supermarkets and Hypermarkets
- Convenience Stores
- Online Stores
- Others
Supermarkets and hypermarkets exhibit a clear dominance in the market
A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, convenience stores, online stores, and others. According to the report, supermarkets and hypermarkets accounted for the largest market share.
Supermarkets and hypermarkets constitute the largest segment for the distribution of the alternatives. These retail giants offer a wide array of dairy alternative products, providing consumers with convenience and choice under one roof. This segment's dominance is attributed to the accessibility, diverse product selection, and the ability for consumers to physically inspect and compare a wide range of products. It's the go-to channel for consumers seeking familiar alternatives and exploring new options, making it a crucial battleground for market players.
On the other hand, convenience stores are increasingly pivotal in distributing dairy products, offering convenient, on-the-go options. They cater to time-pressed consumers with single-serve dairy alternative products, perfectly aligned with modern, fast-paced lifestyles. This channel's growth reflects changing preferences towards quick, accessible, and health-conscious choices in their daily food consumption among the consumers.
Furthermore, online stores and e-commerce platforms are experiencing marked growth in the dairy market. They offer unparalleled convenience, allowing customers to explore and purchase a wide range of dairy products from home. This shift represents a broader trend towards digital shopping, meeting the demands of tech-savvy consumers who value both variety and shopping comfort.
Breakup by Product Type:
- Cheese
- Creamers
- Yogurt
- Ice Creams
- Milk
- Others
Milk dominates the market
The report has provided a detailed breakup and analysis of the market based on the product type. This includes cheese, creamers, yogurt, ice creams, milk, and others. According to the report, milk represented the largest segment.
Milk substitutes, such as almond milk, soy milk, oat milk, and coconut milk, represent the largest segment in the market. These products serve as versatile dairy milk replacements, used in a wide range of applications, including beverages, baking, and cooking. They are favored by consumers seeking lactose-free, plant-based, and often fortified alternatives with vitamins and minerals. The segment's growth is fueled by health-conscious consumers and those with dietary restrictions, contributing significantly to the overall market size on a global level.
On the contrary, cheese alternatives are experiencing higher popularity, especially among vegans and those with dairy allergies. These dairy-free options replicate traditional cheese in various forms, like slices, shreds, and gourmet spreads. This diversification caters to cheese enthusiasts seeking plant-based options without compromising on taste or variety, mirroring traditional cheese experiences.
Besides this, dairy-free creamers have become increasingly favored, particularly in enhancing coffee and tea. Crafted from bases like almond, soy, or oat, these creamers add a creamy texture and a hint of flavor. Their rise in popularity underscores a growing preference for plant-based additives in everyday beverages, combining health consciousness with indulgent tastes.
Additionally, yogurt substitutes are gaining momentum as a dairy-free, probiotic-rich alternative. Made from sources like almond, coconut, soy, or oat, they offer a creamy and tangy experience akin to traditional yogurt. This trend reflects a growing consumer preference for healthful, plant-based options that don’t sacrifice the familiar textures and flavors of dairy-based products.
Furthermore, ice cream alternatives present a delightful choice for those seeking dairy-free frozen treats. Crafted from bases like almond, coconut, or cashew, these alternatives emulate the creamy texture and rich taste of traditional ice cream. Their popularity highlights a consumer shift towards indulgent yet health-conscious frozen desserts, catering to diverse dietary needs and preferences.
Breakup by Region:
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- North America
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Middle East and Africa
Asia Pacific leads the market, accounting for the largest dairy alternatives market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.
Asia Pacific emerges as the largest and most dynamic region in the market, driven by a combination of factors, including the rise of veganism, lactose intolerance prevalence, and a growing health-conscious population. Countries such as China, India, and Japan have witnessed significant demand for plant-based dairy alternatives, particularly soy and almond-based products. The region's market growth is characterized by innovation, with local manufacturers introducing unique flavors and formulations to cater to diverse consumer preferences.
North America follows closely behind, with a strong market presence in the industry. The region's consumers have been early adopters of plant-based options, with almond, soy, and oat-based products gaining popularity. This trend is further supported by the region's robust health and wellness culture, which encourages dietary choices that are perceived as healthier and more sustainable. The North American market is also seeing an increase in innovative dairy-free products, including ice creams and yogurts, catering to a diverse consumer base.
Europe represents a rapidly growing market for dairy alternatives, with consumers in countries, such as the United Kingdom, Germany, and France embracing plant-based choices. Almond and oat-based products have gained traction, along with an increasing preference for artisanal and locally sourced alternatives. The European market is also witnessing a rise in demand for organic and non-GMO dairy alternatives, reflecting a broader trend towards natural and ethical food products.
Latin America is witnessing a gradual shift towards dairy alternatives, driven by a rising awareness of lactose intolerance and a growing interest in plant-based diets. Soy-based products are prominent in the region, offering alternatives to traditional dairy. This shift is also influenced by the increasing availability of a variety of dairy-free products in supermarkets and specialty stores, making them more accessible to the general public.
The Middle East and Africa region are emerging markets for dairy alternatives, with consumers gradually exploring plant-based options. This emerging interest is partly due to increasing health consciousness and the global influence of dietary trends. The introduction of dairy alternatives in this region is also being supported by international brands entering the market, alongside local startups innovating in this space.
Leading Key Players in the Dairy Alternatives Industry:
Key players in the market are actively engaged in several strategic initiatives to maintain their market positions and capitalize on the growing consumer demand for plant-based products. These initiatives include product innovation, where companies are continuously developing new dairy alternative formulations to expand their product portfolios and cater to changing consumer preferences. Additionally, many major players are focusing on sustainability, sourcing high-quality plant ingredients, and adopting eco-friendly packaging practices to align with consumer concerns about environmental impact. Marketing efforts are geared towards highlighting the health benefits of dairy products, such as being lactose-free and low in saturated fats, to attract health-conscious consumers. Collaboration with foodservice chains and expanding distribution channels also plays a crucial role in their growth strategies, ensuring wider accessibility and market penetration.
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Blue Diamond Growers
- Döhler GmbH
- Earth’s Own Food Company Inc.
- Eden Foods, Inc.
- Freedom Foods Group
- Nutriops S.L.
- Organic Valley
- Panos Brands
- Sanitarium
- SunOpta Inc.
- Hain Celestial Group, Inc.
- The Whitewave Foods Company (Danone North America)
- Triballat Noyal
- Valsoia SpA
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
Latest News:
- 20 July 2023: Döhler GmbH announced the acquisition of SVZ, subject to regulatory approval. This acquisition strengthens Döhler’s portfolio of natural red fruit and vegetable ingredients and expands its operations in the USA and Japan5.
- 24 February 2022: PANOS Brands announced new product formulations and packaging. The recent re-brand of the zero calorie, zero carbs salad dressing and condiments line has been improved to be formulated with real vegetables, fruit fiber, and natural flavors, removing all preservatives, sucralose, and artificial flavors and dyes.
- 29 January 2021: Sanitarium health food company has joined the Future Food Systems cooperative research centre consortium. They are working with UNSW food-technology specialists to improve the functional properties of innovative plant-based protein products6.
Dairy Alternatives Market Report Scope:
Report Features |
Details |
Base Year of the Analysis |
2023 |
Historical Period |
2018-2023 |
Forecast Period |
2024-2032 |
Units |
US$ Billion |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
- Sources
- Formulation
- Nutrient
- Distribution Channel
- Product Type
- Region
|
Sources Covered |
Almond, Soy, Oats, Hemp, Coconut, Rice, Others |
Formulations Covered |
- Plain: Sweetened, Unsweetened
- Flavored: Sweetened, Unsweetened
|
Nutrients Covered |
Protein, Starch, Vitamin, Others |
Distribution Channels Covered |
Supermarkets and Hypermarkets, Convenience Stores, Online Stores, Others |
Product Types Covered |
Cheese, Creamers, Yogurt, Ice Creams, Milk, Others |
Regions Covered |
Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered |
United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico |
Companies Covered |
Blue Diamond Growers, Döhler GmbH, Earth’s Own Food Company Inc., Eden Foods, Inc., Freedom Foods Group, Nutriops S.L., Organic Valley, Panos Brands, Sanitarium, SunOpta Inc., Hain Celestial Group, Inc., The Whitewave Foods Company (Danone North America), Triballat Noyal, Valsoia SpA., etc.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.) |
Customization Scope |
10% Free Customization |
Report Price and Purchase Option |
Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899 |
Post-Sale Analyst Support |
10-12 Weeks |
Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the dairy alternatives market from 2018-2032.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global dairy alternatives market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- 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 dairy 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.