Dairy Alternatives Market: Current Analysis and Forecast (2024-2032)

The dairy alternatives market comprises of the products that are made using plants as source rather than dairy. These products serve as an alternative for people restraining themselves from dairy-based products. The dairy alternatives market has steadily risen due to multiple factors, like the increasing demand for plant-based products, which has led to the market's growth. Several other factors, such as rising vegan population, increasing varieties of vegan food in the market and a surge in company collaborations & partnerships, are driving the global dairy alternatives market.

The Dairy Alternatives Market is expected to grow at a steady rate of around 10% owing to the rising company mergers and acquisitions. For instance, in October 2021, Royal DSM, a global purpose-led science-based company, acquired First Choice Ingredients for an enterprise value of USD 453 million. Several other factors, including the rising cases of lactose intolerance, the expanding distribution channels, and strategic partnerships between companies, drive the market's growth during the forecast period. Apart from this, improving the affordability and accessibility of dairy alternatives is also driving this market steadily.

Based on the source, the market is segmented into soy, almond, coconut, and others. The soy segment dominated the market in the year 2023. The soy segment in the dairy alternatives market is flourishing, driven by higher nutrient value of soy derivatives which helps in tackling critical health disorders like diabetes, osteoporosis, hypertension, etc. Soy milk is an excellent source of potassium which helps in maintaining lower blood pressure and a regular pulse. For instance, in April 2024, Singapore-based Yeo Hiap Seng unveiled Yeo's Immuno Soy Milk, fortified with vitamin B6 and zinc to support the body's immune system. The new beverage is endorsed as Healthier Choice in Singapore and Malaysia, offering a lactose-free and healthy alternative to conventional breakfast drinks. This segment will likely expand as consumers increasingly prioritize affordable dairy alternatives that are easily available on e-commerce platforms. Thus, the soy segment held a significant market share in the year 2023 among the sources.

Based on the product category, the market is segmented into milk, yogurt, ice-cream, and others. The milk segment dominated the market in the year 2023. The milk segment in the dairy alternatives market is flourishing, driven by rising consumer demand for dairy milk substitutes and strategic company expansions. For instance, in May 2024, Lactalis Canada, a subsidiary of the French dairy giant, introduced a new plant-based milk brand to the market, just after converting one of its facilities into a fully vegan hub. As a higher percentage of people are becoming lactose intolerant and adopting vegan diets, this segment will likely expand in upcoming years. Thus, the milk segment held a significant market share in the year 2023 among the product categories.

Based on the formulation, the market is bifurcated into plain and flavored. The plain segment dominated the segment in the year 2023. The plain segment within the dairy alternatives market is driven by rising consumer preference for versatile, unflavored dairy substitutes which can be easily used in preparing other culinary dishes. Innovations in marketing strategies, sustainable sourcing, and distribution are key trends shaping this segment. Thus, the plain segment held a significant market share in 2023 among the formulation segments.

For a better understanding of the market adoption of dairy alternatives, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America dominated the market in the current scenario of 2023 due to the rising company expansions and changes in consumer preferences for vegan diets. For instance, in October 2023, U.S.-based Superlatus, Inc., wholly owned subsidiary of TRxADE HEALTH, Inc., a pharmaceutical exchange platform provider, entered into an all-cash asset purchase agreement to acquire the assets of Spero Foods, Inc. Other factors, such as the improving affordability and accessibility of these products, propel the region's market growth. Thus, amongst areas, North America held a significant share of the market in 2023.

Some of the major players operating in the market include Blue Diamond Growers; Califia Farms, LLC; Danone S.A.; OATLY, INC.; Saputo Inc.; The Hain Celestial Group, Inc.; VBites; Vitasoy International Holdings Ltd; SunOpta; Eden Foods.