Dairy Alternative Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Dairy Alternative Market is segmented By Type (Almond Milk, Soy Milk, Coconut Milk, Cashew Milk, Others), By Application (Milk, Beverages, Frozen dessert, Yogurt, Others), By Formulation Type (Original & Sweetened, Original & Unsweetened, Flavoured & Sweetened, Flavoured & Unsweetened), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Dairy Alternative Market Size

Global Dairy Alternative Market reached USD 22.2 billion in 2022 and is expected to reach USD 44.6 billion by 2031 growing with a CAGR of 8.9% during the forecast period 2024-2031. The emerging trend of veganism and the growing demand for plant-based milk products primarily drive the dairy alternatives market.

The rising population of lactose intolerants and the changing perception of consumers about health are the primary factors that are boosting the global dairy alternatives market. Increasing partnerships among the key players are also boosting the market’s demand. For instance, in June 2022, a plant-based beverages manufacturing company, Strive Nutrition Corp., partnered with Perfect Day, a food technology company, to launch a new line of milk alternatives. 

The growth in demand for dairy alternatives by the vegan population and the introduction of new flavours & varieties of dairy alternatives is anticipated to provide growth opportunities for the dairy alternatives market. Manufacturers are focussing on consumer needs and are producing various dairy alternatives. For instance, in January 2022, Chobani LLC, an American food company, launched a new plant-based coffee cream line in four flavours. These are non-GMO and free from artificial flavours and sweeteners.

Market Summary

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Market Dynamics

The Increasing Vegan Population is Driving the Growth of the Global Dairy Alternatives Market.

There is an increase in the vegan population worldwide as consumers are growing health concerns about excessive animal-based food consumption. Health-conscious people are shifting to plant-based foods to maintain good health, increasing the global dairy alternatives market growth. The vegan adoption also reduces greenhouse gas emissions from agriculture by two-thirds, promotes enhanced healthcare savings, and avoids climate damage of USD 1.5 trillion. 

According to recent Veganz Nutrition Study 2022 studies, 30% of Americans are shifting towards plant-based alternatives, leaving meat behind. Consumers are projected to become selective in food habits to prevent severe health issues. Furthermore, growth in per-capita health expenditure, an increasing number of working women, and rapid urbanisation enable consumers to buy healthy non-dairy milk. 

Benefits of Dairy Alternatives are Driving Dairy Alternative Market Growth.

Dairy alternatives are made from various plant-based milks. Multiple flavours and types of plant-based milk alternatives are available. Plant-based milk offers a healthy alternative to dairy milk. It has no hormones and is low in fat and calories. Non-dairy kinds of milk are environmentally friendly. Moreover, such products must establish effective market penetration and the economy of scale to be widely available, affordable, and accessible at all sales points where dairy products are customarily marketed. 

There is an increased consumer preference towards dairy alternatives due to increased lactose intolerance. With the rise in dairy alternative demand, key players in the market also focus on new and innovative product launches to meet the consumer’s requests. For instance, Wicked Foods Inc., a plant-based food manufacturer, introduced its new plant-based ice creams and novelties range in April 2022. This is a first-to-market product launched in the U.S.

The High Cost and Lack of Awareness of Dairy Alternatives are Restrain Market Growth.

Dairy alternatives production is a complicated process. It requires investments in advanced manufacturing equipment for the overall betterment of the procedure of product production. Manufacturers must invest mainly in the process, causing more production costs. Also, the raw materials used in alternative dairy products include hemp milk, oat milk, almond milk, soy milk, coconut milk, and others. 

The high raw materials and processing costs add price to the final product; due to this, low-moderate-class consumers may find difficulty buying dairy alternatives products. Lack of awareness among people about dairy alternatives' existence and benefits hinders market growth. In addition, some people are allergic to soy milk which hampers the global dairy alternatives market growth.

Market Segment Analysis 

The global dairy alternatives market is segmented based on type, application, formulation type, and region.

In the Global Dairy Alternatives Market, the Almond Milk Segment Holds the Largest Market Share. 

The global dairy alternatives market has been segmented by type into almond milk, soy milk, coconut milk, cashew milk, and others. The almond segment held the largest dairy alternatives market share of 38.8% in 2022 in the dairy alternatives market analysis report. The demand for almond milk is increasing at a higher rate in developed countries due to the growing number of vegan and health-conscious consumers.

Almond milk is becoming increasingly popular among health-savvy youth pursuing a ketogenic and vegan diet. Almond milk is the best substitute for dairy. It is high in lipids, fiber, and protein content. It is expected to witness a high adoption rate among consumers and end-user industries. The availability of these products at supermarkets and online stores attracts more people towards them. 

Market Geographical Share

The Asia-Pacific Held the Largest Share of the Dairy Alternatives Market.

The global dairy alternatives market is segmented into five parts based on geography: North America, South America, Europe, Asia-Pacific, the Middle East, and Africa. The Asia-Pacific dairy alternatives market held the largest market share of 38.6% in 2022 in the dairy alternatives market analysis. The increased demand for online market purchases, well-known food chain offerings, and improved health & environmental concerns drive the market in this region. 

The Asia-Pacific region countries such as China and India are the major economies for the region. Chinese companies' soy protein ingredients export business is majorly done to Europe and Southeast Asia. The improving economic development in countries like China increased purchasing power of consumers. With rising income, the demand for high-quality dairy substitutes in the Asia-Pacific region is also growing. 

Dairy Alternative Market Companies

The major global players in the market include Blue Diamond Growers, Earth’s Own Food Company, Inc., Valsoia, Triballat Noyal, The Whitewave Foods Company, Sunopta Inc., Döhler GmBH, Free-dom Foods Group Limited, Eden Foods Inc. and Nutriops S.L.

COVID-19 Impact on Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

The unprecedented COVID-19 pandemic in 2020 profoundly affected the dairy alternatives industry. Covid-19 has considerably impacted the global food supply chain phases involving dairy alternatives production, processing, distribution, and consumption due to lockdowns and restrictions imposed by various governments. 

Everything has changed due to the COVID-19 epidemic. It has influenced practically every industry, whether positively or negatively. The COVID-19 pandemic's effects on world economic conditions have had an influence. They could impact interest rates, foreign exchange rates, commodities and energy prices, and the efficient operation of financial and capital markets.

The COVID-19 pandemic issue has had an impact on the food industries as well. The COVID-19 pandemic is upending life, and the food sector is seeing increased trends like dairy alternatives. The food businesses are launching innovative programs, including dairy alternatives, which are readily available and straightforward to consume. 

Key Developments

• In February 2023, Kagome USA, a leading global sauce-producing company, launched sweet and savoury vegan butter blends in the U.S. market.
• In April 2022, Wicked Foods, Inc., a plant-based food manufacturer, introduced its new plant-based ice creams and novelties range, which is a first-to-market product launched in the U.S.
• In November 2021, Blue Diamond, a California agricultural cooperative and marketing organization specialising in almonds, introduced Almond Breeze Extra Creamy Almondmilk. This product is made from almond oil made from quality California-grown Blue Diamond almonds to give the product an extra creamy texture.

Why Purchase the Report?

• To visualize the global dairy alternatives market segmentation based on type, application, formulation type, and region and understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of dairy alternatives market-level with all segments.
• The PDF report includes a comprehensive market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The Global Dairy Alternatives Market report would provide approximately 61 tables, 61 figures and 165 Pages.