Dairy Alternatives Market Report

According to the Plants Based Food Association, in terms of revenue, plant-based milk increased by 4% in 2021 to become a $2.6 billion category. It has grown by 33% in the past three years and is currently the innovation leader in the milk category. The nutritional benefits of dairy alternatives have led to their extensive use in a variety of applications around the world. Dairy alternatives are gaining popularity for their health benefits, ethical reasons and environmental reasons. As stated by the Journal of Dairy Science, dairy farms have been identified as a significant contributor to greenhouse gas emissions. Thus, a shift in preference for dairy is noticeable as people are opting for eco-friendly alternatives. Furthermore, more options like soy, almonds, oats, coconut, etc. are accessible than ever before, and dairy aisles have changed dramatically in the previous decade. Dairy alternatives are especially popular among consumers looking to reduce their calorie intake, as dairy products are heavy in calories.

The rising prevalence of food-borne allergies and intolerances to dairy-based foods is driving demand for dairy alternatives. Customers prefer these alternatives to authentic milk products due to health concerns such as escalating cases of lactose intolerance and allergies or sensitivity to milk products. The National Library of Medicine states that approximately 65% of the human population has a reduced ability to digest lactose after infancy.  The increased consumer knowledge of the availability of lactose-free products on the market, as well as the expanding trend of vegan diets, is encouraging the growth of the sector. Consumers seeking natural and plant-based products free of artificial flavors and colors are providing additional momentum to the market. Moreover, rising disposable incomes, rising population, and rising demand from developing areas are the primary factors leading to the expansion of this sector.

• The surge in oat milk popularity is driven by sustainability and taste.
• Innovation in dairy-free ice cream flavors and textures.
• The surge in demand for non-GMO and organic dairy substitutes.
• Rice milk maintains its position as a staple dairy alternative.
• Enhanced marketing of dairy alternatives targeting health-conscious consumers.

As stated by Roswell Park Comprehensive Cancer Centre, soy milk has been the most popular non-dairy substitute for decades since its nutritional profile closely approaches that of cow's milk. It's the best high-protein milk substitute. Since the milk business is so commoditized, customers are experimenting by purchasing new alternatives. Soy milk has been a clear leader in terms of the source, owing to its larger availability in the Asia Pacific market. Individuals, particularly athletes active in physical fitness activities, are becoming more interested in soy milk. The millennial population drives the industry due to their significant interest in sports, inclination towards fitness, higher disposable income, and willingness to purchase healthy items. The shift in consumer behavior is also prompting soy milk manufacturers to develop new products that satisfy market demand. Public interest in physical fitness is on the rise, and the number of health clubs and fitness facilities has also increased in recent years. The expansion of these establishments will be a driving force in the soy milk market during the forecast period.

The dairy alternatives market mainly constrains market expansion in developing economies due to the high prices linked to plant-based dairy products. Customers in developing countries such as India, China, Australia, Bangladesh, Brazil, and Mexico cannot afford the high prices of dairy alternatives, hence the market for these goods is extremely limited in these countries. Furthermore, because the cost of procuring raw materials is high for plant-based products, it immediately influences the ultimate price of the product, making it more expensive and unattainable for the majority of consumers. In addition to the high cost of raw materials, a lack of consumer understanding about the nutritional benefits of dairy replacement products is also projected to hamper industry expansion.

Due to rising consumer awareness of the value of protein-rich diets and plant-based diets, Asia-Pacific accounts for a sizable share of the global dairy alternatives market. Increasing populations and rising disposable incomes in emerging markets such as India, China, and Japan are expected to boost product demand in this region. North America follows the Asia-Pacific region in the global dairy alternatives market, owing to the extensive use of dairy alternatives such as yogurt and ice cream. Moreover, North America is leading internationally in almond production accounting for 80% of the global yield as stated by The Vegan Society. Consumer demand for flavored almond and soy milk is expected to be a significant driving force in the industry. Furthermore, the European market for dairy substitutes is estimated to show adequate expansion over the forecast period owing to the increasing demand for healthy meals and drinks in the area. Although a lack of information about dairy replacement goods has hampered previous growth, a broad demographic with spontaneous buying habits may be responsible for the growth in this sector.

The report provides a detailed overview of the dairy alternatives market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the dairy alternatives market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the dairy alternatives market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which is anticipated to have a substantial impact on the growth of the dairy alternatives market. Some key countries and regions included in the dairy alternatives market report are as follows:

• Dairy alternatives market detailed segments and segment-wise market breakdown
• Dairy alternatives market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in dairy alternatives industry)
• Current, historical, and forthcoming 10 years market valuation in terms of dairy alternatives market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Dairy alternatives market demand analysis
• Dairy alternatives market pricing analysis over the forecast period (by key segment and by region)
• Dairy alternatives market regional insights with the region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in the dairy alternatives market
• Regulatory landscape by key regions and key countries
• Supply chain and value chain analysis in the dairy alternatives market
• Dairy alternatives market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on the dairy alternatives market forecast by countries
• Mergers and acquisitions in the dairy alternatives market
• Essential information to enhance market position
• Robust research methodology