Animal Free Dairy Products Market Size, Share, Trends, Growth and Forecast 2032

Animal-Free Dairy Products Industry Prospective:

The global animal free dairy products market size was worth around USD 26.5 billion in 2023 and is predicted to grow to around USD 65.6 billion by 2032, with a compound annual growth rate (CAGR) of roughly 10.6% between 2024 and 2032. 

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Animal Free Dairy Products Market: Overview

Dairy-like products free of animals are produced without animal participation. Designed with cellular agriculture, plant-based foods, or precision fermentation, these goods replicate the taste, texture, and nutritional value of conventional dairy. Consumers seeking lactose-free, ethical, sustainable dairy substitutes are helping the market for animal-free dairy products grow. Products in this category include exact fermentation replicating the taste, texture, and nutritional worth of traditional dairy without utilizing animals.

Key Insights

• As per the analysis shared by our research analyst, the global animal free dairy products market is estimated to grow annually at a CAGR of around 10.6% over the forecast period (2024-2032).
• In terms of revenue, the global animal free dairy products market size was valued at around USD 26.5 billion in 2023 and is projected to reach USD 65.6 billion by 2032.
• The increasing demand for lactose-free products is expected to drive the animal free dairy products market over the forecast period.
• Based on the source, the soy segment is expected to hold the largest market share over the forecast period.
• Based on the type, the flavored segment is expected to dominate the market expansion over the projected period.
• Based on the product, the non-dairy milk segment is expected to capture the largest market share over the projected period.
• Based on the distribution channel, the supermarkets & hypermarkets segment is expected to capture the largest revenue share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Animal Free Dairy Products Market: Growth Drivers

Rising demand for plant-based milk drives market growth

Global lifestyle changes and the increased demand for plant-based dairy products are driving the animal free dairy products market's expansion. Because of health issues like lactose intolerance and allergies associated with cow milk consumption, consumers are turning to plant-based dairy products like soymilk and coconut milk, increasing the market demand for dairy products free of animal ingredients. Frequent soymilk drinking promotes weight loss or gain, lowers high blood pressure, and lowers cholesterol.

Additionally, the rise in gyms and sports clubs brought on by growing health concerns raises demand for soy milk among those concerned about their health. Frequent drinking of soy milk lowers the risk of breast cancer before menopause by 59%. The global market for dairy products free of animal ingredients is expanding as a result of the growing nutritional value of soy milk products. About 2,000 tons of carbon dioxide, methane, and nitrous oxide are released by dairy farms, which has an adverse effect on the environment. Dairy products made from animals are better for the environment since they emit less carbon dioxide. Additionally, the market for dairy products devoid of animal components is expanding as more people shop online and use cell phones.

Animal-Free Dairy Products Market: Restraints

High production cost hinders market growth

The high cost of production, which is mainly caused by sophisticated biotechnological procedures, pricey raw ingredients, and scalability constraints, is one of the main obstacles faced by the animal-free dairy products industry. Advanced microbial engineering is needed to produce casein and whey proteins by precise fermentation. It is necessary to culture genetically engineered yeast or fungi in specialized fermentation tanks, which requires expensive bioreactors and considerable energy usage. Compared to traditional dairy, production expenses are further raised by purification and processing procedures.

Additionally, establishing bioreactors and fermentation facilities requires a large financial outlay. Modern biotechnology labs with regulated conditions are necessary for these operations, in contrast to conventional dairy production. Thus, the high production cost hampers the market growth.

Animal Free Dairy Products Market: Opportunities

The increasing investment in innovative technology offers a lucrative opportunity for market growt

The increasing investment in innovative technology offers a lucrative opportunity for the animal free dairy products market over the forecast period. For instance, in September 2022, Nestlé declared that it is investigating cutting-edge technologies for creating dairy products devoid of animal protein. To satisfy the rising demand from consumers for wholesome, eco-friendly diets that also taste delicious, the company has made investments in plant-based meat and dairy substitutes over the years.

Using its recently created U.S. R+D Accelerator, Nestlé will test-and-learn a new product before launching it on the U.S. market later this year. Perfect Day's animal-free protein is used to make the product. Perfect Day claims that the protein produced using precise fermentation is lactose-free, has good nutritional and functional benefits, and is identical to the whey protein present in cow's milk. It is also acceptable for vegans.

Animal Free Dairy Products Market: Challenges

Competition from traditional & plant-based dairy poses a major challenge to market expansion

Conventional dairy products, as well as various well-liked plant-based equivalents, are available on the market for dairy products free of animal substances. This competition is one of the primary challenges to the growth and acceptance of fermented dairy products. Long-standing consumer loyalty and confidence have gone toward classic dairy goods, including milk, cheese, yogurt, and butter. Regulatory impact and dairy industry lobbying could hinder market access as well as animal-free dairy labels.

Because it is still easily available and cheaply priced, pricey animal-free dairy finds it difficult to compete with regular dairy. Plant-based dairy is also more easily available to customers since its production costs are usually cheaper than those of fermentation-based dairy. Unlike precise fermentation, plant-based dairy eliminates expensive bioreactors or microbial engineering.

Animal Free Dairy Products Market: Report Scope

Animal Free Dairy Products Market: Segmentation

The global animal free dairy products industry is segmented based on source, type, product, distribution channel, and region.

Based on the source, the global animal free dairy products market is bifurcated into soy, almond, coconut, rice, oats, hemp, and others. The soy segment is expected to hold the largest market share over the forecast period. This growth is attributed to factors such as increasing lactose intolerance, dietary preferences, and environmental concerns.

Based on the type, the global animal free dairy products industry is bifurcated into flavored and plain. The flavored segment is expected to dominate the market expansion over the projected period. The market for animal-free dairy products is expected to grow rapidly, and flavored products will be crucial in drawing customers and increasing market share in the dairy substitute industry.

Based on the product, the global animal free dairy products market is bifurcated into non-dairy milk, ice cream, yogurt, cheese, creamers, and others. The non-dairy milk segment is expected to capture the largest market share over the projected period. This growth is attributed to factors such as increasing lactose intolerance, dietary preferences, and environmental concerns.

Based on the distribution channel, the global animal free dairy products industry is bifurcated into supermarkets & hypermarkets, convenience stores, and online stores. The supermarkets & hypermarkets segment is expected to capture the largest revenue share over the forecast period. Their extensive reach and ability to offer a wide range of products make them crucial in meeting consumer demand and facilitating market expansion.

Animal-Free Dairy Products Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global animal free dairy products market. The growing demand for plant-based milk in industrialized nations like the United States, Canada, and Mexico is driving the market's expansion in North America. Animal-free dairy products are becoming more and more popular in North America due to rising health consciousness and sports-related activities.

Besides, the Asia Pacific is expected to grow at the highest CAGR during the projected period. This sizeable portion is mostly explained by the high rates of lactose intolerance in nations like China, India, and Japan, which push customers to look for plant-based substitutes like rice milk, soy milk, and almond milk.

Animal Free Dairy Products Market: Competitive Analysis

The global animal free dairy products market is dominated by players like:

• Danone
• Nestle
• Unilever Oatly
• Alpro
• Silk
• Perfect Day
• TurtleTree Labs
• Motif
• Food Giants
• Zero Cow Factory
• ImaginDairy

The global animal free dairy products market is segmented as follows:

By Source

• Soy
• Almond
• Coconut
• Rice
• Oats
• Hemp
• Others

By Type

• Flavored
• Plain

By Product

• Non-Dairy Milk
• Ice-Cream
• Yogurt
• Cheese
• Creamers
• Others

By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Online Stores

By Region

• North America

  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa