Dairy Alternatives Market Forecasts to 2030 - Global Analysis By Product, Form, Source, Distribution Channel, Application, End User and By Geography

According to Stratistics MRC, the Global Dairy Alternatives Market is accounted for $28.43 billion in 2024 and is expected to reach $45.75 billion by 2030 growing at a CAGR of 12.1% during the forecast period. Dairy alternatives are food and beverage products designed to replace traditional dairy items. They often provide essential nutrients like calcium, vitamin D, and protein while being lower in saturated fat and cholesterol. Dairy alternatives support vegan, vegetarian, and eco-friendly diets, promoting sustainability and animal welfare.

According to the U.S. Department of Agriculture, approximately 8 million people followed a vegetarian diet and 1.58 million people followed a vegan diet in 2022.

Market Dynamics:

Driver:

Increasing health and wellness trends

As people become more conscious of diet-related health issues such as heart disease, diabetes, and obesity, they seek alternatives that are lower in saturated fat, cholesterol, and calories. Dairy alternatives, rich in vitamins, minerals, and often fortified with additional nutrients, cater to these demands. This shift is supported by increasing awareness of the benefits of plant-based diets and the desire to avoid additives and hormones found in traditional dairy, propelling market expansion and innovation.

Restraint:

Nutritional concerns

Nutritional concerns in dairy alternatives arise from potential deficiencies in key nutrients such as protein, calcium, and vitamins compared to traditional dairy products. Some plant-based options may have lower protein content or lack essential nutrients unless fortified. These nutritional gaps can deter health-conscious consumers and create skepticism about the benefits of dairy alternatives. Consequently, such concerns may hamper market growth by limiting consumer acceptance and leading to lower sales.

Opportunity:

Growing adoption of vegan and vegetarian lifestyles

Since more consumers choose to avoid animal products for health, ethical, and environmental reasons, they seek substitutes for traditional dairy items. This shift drives innovation and expansion in dairy alternatives, as companies develop diverse options like almond, soy, oat, and coconut-based products. Increased consumer awareness and demand fuel market growth, prompting retailers to stock a broader range of alternatives and making these products more accessible. The trend also attracts investments, further supporting market development and innovation.

Threat:

Consumer skepticism

Consumer skepticism toward dairy alternatives often stems from concerns about taste, texture, and nutritional value compared to traditional dairy products. Some consumers doubt the efficacy of plant-based options in providing essential nutrients or find them less satisfying. This skepticism can limit market growth by hindering widespread adoption and reducing overall demand. Additionally, negative perceptions may lead to slower acceptance and lower sales, impacting the incentives for innovation and investment in the dairy alternatives sector.

Covid-19 Impact

The covid-19 pandemic boosted the dairy alternatives market as consumer's prioritized health and wellness, leading to increased demand for plant-based products. Supply chain disruptions briefly impacted availability, but the market quickly adapted. Online shopping surged, further driving sales. The pandemic's emphasis on sustainable and immune-supporting foods solidified dairy alternatives as a growing segment, with heightened awareness of dietary choices contributing to long-term market expansion.

The almond segment is expected to be the largest during the forecast period

The almond segment is estimated to have a lucrative growth. Almond-based dairy alternatives are popular for their mild flavor, creamy texture, and nutritional benefits, including vitamin E and calcium. They encompass a range of products like milk, yogurt, cheese, and ice cream. Favoured for being low in calories and cholesterol-free, almond alternatives cater to health-conscious consumers and those with lactose intolerance. Sustainable farming practices and widespread availability boost their appeal, making them a significant segment in the dairy alternatives market.

The vegetarian/vegan consumers segment is expected to have the highest CAGR during the forecast period

The vegetarian/vegan consumers segment is anticipated to witness the highest CAGR growth during the forecast period. Dairy alternatives provide substitutes for milk, cheese, yogurt, and ice cream without animal products. These alternatives align with ethical and environmental values by avoiding animal exploitation and reducing carbon footprints. They offer essential nutrients such as protein, calcium, and vitamins while catering to diverse dietary preferences. The growing availability and innovation in flavor and texture make these products a staple in vegan and vegetarian diets, supporting a more sustainable lifestyle.

Region with largest share:

The Asia Pacific dairy alternatives market is experiencing rapid growth, driven by rising lactose intolerance, health consciousness, and plant-based diet adoption. Countries like China, India, and Japan lead in demand due to increasing urbanization and disposable incomes. Soy, almond, and coconut-based products are particularly popular. E-commerce expansion and growing awareness of environmental sustainability further propel the market. Regulatory support and investments in plant-based food start-ups are also key factors boosting growth in the region.

Region with highest CAGR:

The North American dairy alternatives market is expanding rapidly, fuelled by rising health awareness, lactose intolerance, and veganism. The U.S. and Canada lead in consumption, with strong demand for almond, soy, oat, and coconut-based products. Retail giants and e-commerce platforms boost accessibility, while investment in plant-based start-ups drives growth. Regulatory support and increasing availability of fortified options further solidify the market's presence in North America.

Key players in the market

Some of the key players profiled in the Dairy Alternatives Market include Alpro, Oatly, Lactalis, So Delicious, Califia Farms, Ripple Foods, Elmhurst, Malk Organics, Nutpods, Vitasoy, Hain Celestial, Brew Dr. Kombucha, Rude Health, Forager Project and Synthite Industries.

Key Developments:

In May 2024, Lactalis, a global leader in dairy products, has recently entered the plant-based market with its new brand, "Enjoy!". The brand focuses on delivering high-quality products that closely mimic the taste and texture of conventional dairy, aiming to satisfy both vegan and non-vegan consumers.

In June 2023, Synthite Industries has ventured into the plant-based dairy alternatives and plant-protein sector through a joint venture (JV) with PMEDS and the Indian Institute of Science (IISc). This strategic move marks Synthite's expansion into the growing plant-based food market.

Product Covered:

• Plant-Based Milks
• Plant-Based Yogurts
• Plant-Based Cheeses
• Plant-Based Ice Creams
• Plant-Based Butters
• Other Products

Forms Covered:

• Liquid
• Powder
• Frozen
• Concentrates

Sources Covered:

• Soy
• Almond
• Coconut
• Oat
• Cashew
• Other Sources

Distribution Channels Covered:

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Retail
• Other Distribution Channels

Applications Covered:

• Beverages
• Cooking & Baking Ingredients
• Infant Formula
• Health & Wellness Products
• Other Applications

End Users Covered:

• Vegetarian/Vegan Consumers
• Lactose-Intolerant Consumers
• Health-Conscious Consumers
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances