Global Dairy Alternatives Market Size By Source (Soy, Almond, Coconut, Rice, Oats, Hemp and Others), Product (Milk, Yogurt, Ice Cream, Cheese, Creamer, and Others), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Market Perspective
The global Dairy Alternatives Market was worth around USD 24.42 billion in 2022 and is anticipated to grow to nearly USD 75.75 billion by 2030 at a CAGR of about 15.20% over 2023 - 2030.
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Key Insights
- Based on source, the soy segment held the dominating position in 2022
- Based on product, the milk segment acquired the largest market share in 2022
- Based on distribution channel, the supermarkets/hypermarkets segment is expected to grow with the highest CAGR over the forecast period
- On the basis of region, North America accounted for the largest market share in 2022
Increasing Popularity of Health Consciousness and Environmental Awareness Among Individuals
The dairy alternatives market is witnessing significant growth, primarily attributed to the rising consumer emphasis on health and wellness. A growing awareness regarding the negative effects of saturated fats and cholesterol, and the mounting prevalence of lactose intolerance among consumers have prompted individuals to explore healthier options beyond conventional dairy products. This shifting consumer preference toward healthier alternatives has resulted in a surge in the demand for dairy alternatives, as consumers gravitate toward products that offer lower fat content, lower levels of allergens, and potential health advantages. This trend signifies a fundamental change in consumer behavior, as they actively seek and embrace dairy alternative products to meet their dietary needs and preferences.
Moreover, consumers are becoming increasingly cautious about the quality and processes relating to the preparation of their food. The COVID-19 pandemic has further heightened the importance of supporting local brands. Additionally, the growing adoption of plant-based ingredients, which are rich in proteins and favored by athletes and fitness enthusiasts, is a key driver behind the growth of the global dairy alternatives industry.
Concerns Pertaining to High Cost of Dairy Alternatives May Hinder Market Growth
The global dairy alternatives market is estimated to face challenges due to changing weather patterns. These fluctuations in weather conditions can impact the availability and quality of raw materials, thereby influencing the supply of dairy alternatives. As a result, price fluctuations may occur within the market. High costs associated with the production limits the consumer base to individuals with high disposable incomes.
Furthermore, the growth of the global dairy alternatives market has been hindered by a decrease in consumer awareness of plant-based beverages. This decline in awareness has led to a slowdown in the adoption and demand for dairy alternative products especially in developing countries.
Recent Development
April 2021- SunOpta acquired Dream and WestSoy plant-based beverage brands from The Hain Celestial Group, Inc. The objective of this deal was to create strong organic and inorganic growth in plant-based business for the company.
Segmentation Analysis
Based on the source, the global dairy alternatives market is categorized into soy, almond, coconut, rice, oats, hemp, and others. In 2022, the soy segment emerged as the dominant market shareholder. This can be attributed to the exceptional nutritional value of soy, making it the most widely cultivated and consumed bean globally. Soy is known for its diverse health benefits, ranging from addressing obesity and hypertension to improving cholesterol levels, preventing heart diseases, aiding in weight loss, promoting better bone health, and acting as an antidepressant in the body. However, the almond segment is expected to experience significant growth through the forecast period. Almonds are widely consumed and enjoy popularity among various sources. The high consumption rate can be primarily attributed to the well-established therapeutic qualities associated with almonds. These qualities include a healthy lipid profile, immune-boosting properties, and antioxidant effects.
Based on product, the market is further divided into milk, yogurt, ice cream, cheese, creamer, and others. Among these segments, the milk segment emerged as the market leader in 2022, accounting for the largest market share. This can be attributed to several factors, including favorable demand dynamics, a growing interest from major corporations and private-label companies in developing plant-based milk alternatives, and the significant growth potential for vegan beverages. The expanding geriatric population, rising cases of lactose intolerance, and the busy lifestyles of consumers are contributing to the growing health concerns and, consequently, the escalating demand for dairy alternatives.
Based on distribution channels, the market is segmented into supermarkets/hypermarkets, convenience stores, online, and others. In 2022, the supermarkets/hypermarkets segment held the dominant market share. This can be attributed to factors such as the easy availability of dairy alternatives in these retail outlets and consumer preference for physically inspecting and evaluating products before making a purchase. Supermarkets/hypermarkets are characterized as large-sized retail establishments that are conveniently accessible to consumers. The online segment is expected to witness significant growth in the coming years, primarily due to the widespread popularity of e-commerce platforms. The e-commerce sector experienced a surge in sales during the COVID-19 pandemic, attributing to factors such as convenience, safety, and the ability to reach a wider consumer base.
Changing Consumer Preferences Bolster Product Demand in North America
North America dominated the global market in 2022 owing to factors including a large population of health-conscious consumers, increasing awareness of environmental sustainability, and robust plant-based food manufacturing infrastructure. Additionally, North America has a well-developed market infrastructure and distribution channels that support the availability and accessibility of dairy alternative products. Supermarkets and hypermarkets play a significant role in the sales of alternative dairy products, providing a wide range of options to consumers.
Moreover, the region has witnessed a surge in the popularity of specific dairy alternative sources such as almond milk. Almond milk is favored by health-conscious consumers pursuing ketogenic and vegan diets due to its high lipid, fiber, and protein content. The marketing and branding efforts of almond-based non-dairy products have resonated well with younger consumers in North America, further driving consumption.
Asia-Pacific to Witness the Fastest Growth Owing to Increasing Health Awareness
Asia Pacific is estimated to witness the fastest growth through the forecast period owing to a surge in health awareness and dietary preferences. As more consumers in the region become health-conscious and seek alternatives to traditional dairy, the market is poised for significant expansion. Additionally, the region's increasing population and urbanization are boosting the demand for convenient and healthy food options, including dairy alternatives. The driving factor behind this growth is the convergence of health-conscious consumer choices and a growing middle-class population, which is fueling the adoption of dairy alternatives in the Asia Pacific region.
Competitive Landscape
The global dairy alternatives market is fragmented with key players such as Hain Celestial, SunOpta Inc, Danone, Oatly AB, Vitasoy International Holdings Limited, DAIYA FOODS INC., J.M. HUBER (CP Kelco), ADM, Blue Diamond Growers, Melt Organic, PANOS, Living Harvest Foods Inc., Ripple Foods, and Earth’s Own Food Company Inc., among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.
The global Dairy Alternatives Market is segmented as follows:
By Source
- Soy
- Almond
- Coconut
- Rice
- Oats
- Hemp
- Others
By Product
- Milk
- Yogurt
- Ice Cream
- Cheese
- Creamer
- Others
By Distribution Channel
- Supermarkets/Hypermarkets
- Convenience Stores
- Online
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Global Dairy Alternatives Market Size By
- February-2024
- 165
- Global
- food-beverage
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